India’s housing market gst: India’s housing market has not yet seen an impact from GST 2.0. Bookings and sales in the early days of the new tax system, which started around the festive season, are mostly driven by attractive offers and discounts from developers. While GST 2.0 does not give direct benefits to homebuyers, it has reduced tax rates on raw materials, which is expected to lower construction costs by 3–5%.
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Prashant Thakur, Executive Director & Head of Research at Anarock Group, said, “It is still too early to see any impact of the GST 2.0. While overall sales declined in the last quarter, segments like luxury and select micro-markets across India witnessed an uptick in sales. The festive season has only begun peaking now, with Sharad Navratri just concluded and Durga Puja, Maha Saptami, and Maha Ashtami to segue into Dussehra and then Diwali in October. As such, we are yet to see the peak property buying window.”
Developers Bet on Festive Season
Prestige Group said that since GST rates remain the same for real estate, the revision did not significantly change bookings until September 22.
Praveer Shrivastava, Senior Executive VP of Residential at Prestige, said, “However, we do expect that with the festive season starting from 22nd September, there will be a good uptick of home sales. We are launching the next phase of TPCI in Delhi-NCR and 3 plotted developments in Bangalore during this auspicious period.”
Realtors are offering big festive benefits like discounts, gold coins, and flexible payment plans. Pradeep Aggarwal, Founder and Chairman of Signature Global, said, “This Navratri, we are making the celebrations truly special with exclusive limited-time offers on select premium projects. Homebuyers can book their dream home by paying just 25% as the booking amount, receive a complimentary gold coin, and stand a chance to win a luxury car.”
Thakur explained that GST cutbacks have lowered building costs, but this does not help ready-to-move projects where costs are already fixed. For under-construction projects, developers may use the savings to improve construction rather than lower prices.
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He added, “Current festive deals include cash discounts of Rs 100–200 per square foot, waiving of stamp duty, flexible payment plans, and gifts like gold vouchers. Overall, many mid-range projects are offering combined savings of INR 3–4.5 lakhs. The 20–30% increase in sales over the holiday season is mostly due to traditional offers rather than because of GST relief.”
Raw Material Costs and Future Demand
The GST Council has cut levies on cement from 28% to 18% and reduced taxes on marble and granite blocks from 12% to 5%. This, along with a stable repo rate, is expected to generate more demand in housing.
