By reducing costs and stimulating demand, GST reform will accelerate India’s housing market and complement infrastructure-led development

Mr Samyak Jain, Director, Siddha Group stated : “The GST Council’s latest rationalisation is not just India’s biggest tax overhaul since 2017—it is a reform with far-reaching impact on housing and construction. By reducing slabs to a simpler two-tier structure and eliminating ambiguity on rates, the Council has created a transparent, efficient system that will help both consumers and businesses. For households, lower GST on essentials and FMCG products will free up disposable income, directly boosting confidence to invest in big-ticket purchases like homes.

For the housing and construction sector, the benefits are both direct and significant. With key input materials such as paints, tiles, electricals, fittings, and other consumer durables moving from the 28% slab to 18%, the overall cost of home ownership is set to ease. We estimate construction costs could reduce by 3–5%, improving affordability in metros while also encouraging first-time buyers and driving demand in tier-2 and tier-3 cities where housing aspirations are rapidly growing. This reform comes at an opportune time, as urban centres like Mumbai are already witnessing robust demand, powered by infrastructure upgrades, rising employment opportunities, and a shift towards aspirational housing.

The reforms also align with a strategically important period, coinciding with Navratri and the festive season, which has historically been a peak period for property sales. Moreover, the broader monetary environment is supportive. Given current conditions, RBI is likely to hold rates in September, choosing to weigh the full effects of previous easing. With low inflation and resilient growth, a modest cut of around 25 bps by late 2025 is possible if global risks ease and domestic momentum dips. This measured approach balances inflation control with support for consumer demand and real estate credit transmission. Together with GST rationalisation, these factors will enhance affordability, strengthen buyer confidence, and support sustained growth in India’s housing market.”

— Mr Samyak Jain, Director, Siddha Group

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About Siddha Group

Founded in 1986 and headquartered in Kolkata, Siddha Group is a trusted name in Indian real estate with a growing footprint across Mumbai, Kolkata and Jaipur. The Group has built its reputation on quality construction, design innovation, affordability, and timely delivery, spanning residential, commercial, integrated townships and more…

Led by Chairman Chandra Prakash Jain, Managing Director Sanjay Jain, and Director Samyak Jain (who spearheads Mumbai operations), Siddha is committed to transparency and customer-centric development.

In Mumbai, the Group’s flagship project, Siddha Sky in Wadala, introduces the city’s first Rooftop Skywalk connecting five 39-storey towers, along with premium lifestyle amenities and a retail hub.

Nationally, Siddha has delivered over 15 million sq. ft. with over 10 million sq. ft. currently under development.

Pioneering concepts like Rooftop Skywalks, Siddha has consistently set new benchmarks in smart design and efficient planning. Recognized with over 30 industry awards, including CNBC Awaaz’s ‘Most Trusted Real Estate Brand – East Zone,’ Siddha continues to stand for trust, innovation, and excellence in execution.

 For More Information or to connect with Siddha Group

Please contact : Aaryana Matasco  | Ayesha Aryan Rana | 98214 12356 | 7700029963

ayesha.aryan @aaryanamatasco.ind.in | www.aaryanamatasco.ind.in