Affordable housing set for solid growth

Enhancing Accessibility

- RAGHAVENDRA KAMATH & URVI MALVANIA

REDUCED GST ON construction materials like cement is expected to prop up sales in the affordable housing which had been hit by spiralling prices and high interest rates, experts and analysts said.

GST on cement has been brought down from 28% to 18% while the rates on construction and finishing materials have fallen from 12% to 5%.

The reduction in GST is expected to reduce costs, which, in turn, will reduce pricing of apartments and boost demand. Affordable housing, where houses are priced below ₹40 lakh, has seen its share of total sales decline from 38% in 2019 to 18% in 2024. The share of new supply saw a sharper fall — from 40% in 2019 to 12% in H12025, Anarock Research said.