Housing Market Sees No Immediate GST 2.0 Impact, Discounts Drive Sales
India's housing market has not yet seen a significant impact from GST 2.0. Sales and bookings during the festive season are primarily driven by attractive offers and discounts from developers. While reduced rates on raw materials could bring down construction costs, the sector is currently relying on traditional incentives to boost sales.
Gst 20Housing MarketReal EstateFestive SeasonDiscountsReal Estate NewsSep 24, 2025
“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.
Frequently Asked Questions
What is GST 2.0 and how does it affect the housing market?
GST 2.0 is the second phase of the Goods and Services Tax in India. While it does not directly benefit the housing market, it reduces the tax rates on raw materials, which can lower construction costs by 3-5%.
How are real estate developers driving sales during the festive season?
Developers are offering various incentives such as cash discounts, waiving of stamp duty, flexible payment plans, and gifts like gold vouchers to attract homebuyers during the festive season.
What is the expected impact of reduced taxes on raw materials?
The reduced taxes on raw materials like cement and marble are expected to bring down construction costs, which could potentially lower property prices or boost project execution.
Which segments of the housing market are performing well?
Luxury and select micro-markets across India have seen an uptick in sales, while the overall market has experienced a decline in the last quarter.
What are the key festive deals offered by real estate developers?
Key festive deals include cash discounts of Rs 100–200 per square foot, waiving of stamp duty, flexible payment plans, and gifts like gold vouchers, offering combined savings of INR 3-4.5 lakhs.
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