New Delhi [India], September 4 (ANI): The central government's decision to reduce the Goods and Services Tax (GST) on cement and steel has been hailed as a game-changing move by leaders from the real estate industry.

According to them, the reduction will ease input costs, improve project viability, and give a major push to the housing and infrastructure sectors, especially affordable housing.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, highlighted the cost impact of the move.

'With cement, steel, and other inputs typically accounting for nearly 40-45 per cent of total construction costs, this reduction will meaningfully lower project expenses. Developers can now pass on part of these savings to homebuyers, improving affordability and stimulating demand across segments,' he explained.

He added that the reform has come at the right time as a festive season boost.

'This step will also accelerate the government's larger vision of housing growth and infrastructure-led economic development,' Magazine said.

Niranjan Hiranandani, Chairman of Hiranandani Group and NAREDCO National, termed the GST rationalisation as a 'festive bonanza' for Indian consumers and a strategic boost for the economy.

'For the real estate and infrastructure sectors, the reduction of GST on critical construction materials like cement and steel from 28 per cent to 18 per cent is a landmark reform. This will significantly ease input costs, improve project viability, and accelerate infrastructure development across the country,' he said.

Hiranandani further added that affordable housing stands to gain the most as reduced construction costs can be passed on to homebuyers.

He pointed out that this would make homes more accessible while supporting the government's Housing for All vision. 'This rationalisation is not just a boost for developers, it is a win-win for consumers, the housing sector, and India's long-term growth story,' he added.

Echoing similar views, G Hari Babu, National President of NAREDCO, said the GST rationalisation is a very important step and has been welcomed wholeheartedly by the industry.

'This move brings special relief to real estate and its allied industries. Lower GST on key materials like cement and steel will directly reduce costs. Projects will become more viable and progress faster,' he noted.

Hari Babu also stressed that affordable housing will benefit the most as the cost savings can be passed on to homebuyers.

'This will make homes more accessible and push forward the government's Housing for All vision. This is a win-win for consumers, the real estate sector, and the nation's growth story. We see this as a progressive step that will create long-term momentum for India's economy,' he said.

Industry experts believed the GST cut will not only reduce construction costs but also stimulate homebuyer sentiment and drive purchase decisions, creating momentum in the real estate and infrastructure sectors. (ANI)