Realty prices may fall by up to 5% as tax on cement slashed to 18%

PROPERTY prices could fall by up to 5% following the reduction in goods and services tax (GST) on key construction materials.

- ARSHAD KHAN @New Delhi

PROPERTY prices could fall by up to 5% following the reduction in goods and services tax (GST) on key construction materials. The GST on cement has been cut from 28% to 18%, while the tax rate on marble and granite blocks has been reduced from 12% to 5%.

Anuj Puri, Chairman, ANAROCK Group, said the forthcoming GST changes, effective from September 22, 2025, will have a positive impact on residential, retail, and office real estate sectors. Puri added that lower GST on construction materials like cement can reduce construction costs by as much as 3-5%. "Lower construction costs, if passed on to homebuyers, can boost demand in these segments," he added.