Housing Market Sees No Immediate GST 2.0 Impact, Discounts Drive Sales
India’s housing market is yet to benefit from GST 2.0, with bookings and sales in the initial days of the new tax regime, coinciding with the start of the festive season across most parts of the country, driven mainly by attractive offers and discounts from developers. While there are no direct benefits for the sector in GST 2.0, a reduced rate on raw materials is expected to bring down construction costs by 3-5%.
“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,” said Prashant Thakur, Executive Director & Head – Research & Advisory, Anarock Group.
Leading real estate developer Prestige Group said that since GST remains the same for the real estate sector, the revision didn’t have any significant impact on bookings till 22nd September.
“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,” Praveer Shrivastava, Sr. Executive VP, Residential, Prestige Group told TNIE.
To drive sales in this important period, realtors are offering big benefits, ranging from a direct discount to gold coins. Pradeep Aggarwal, Founder & Chairman, Signature Global (India), said this Navratri, they 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, added Aggarwal.
Thakur of Anarock explained that GST cutbacks caused building costs to decline, but obviously, this does not help in ready-to-move projects where costs are already locked in. In the case of under-construction projects, instead of lowering prices directly, many developers may leverage the savings to boost execution rather than in outright price cuts.
“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,” he said.
The GST Council has reduced levies on cement from 28% to 18%, while the rate on marble and granite blocks has been reduced from 12% to 5%. This, along with a stable repo rate, is expected to generate demand in the housing sector which registered a steep decline in sales during the first six months of 2025.
