Cement GST Cut, Festive Demand, and Stable Rates to Fuel India’s Housing Boom in Q4 2025: PropTiger Report
India’s residential real estate market is poised for a vibrant close to 2025, as the latest PropTiger Real Insight Residential Report (Q3 2025) reveals a strong foundation for growth heading into the festive season. The sector showed remarkable resilience during July–September 2025, even with a marginal dip in sales volumes. New housing supply grew by 9.1% to 91,807 units, while sales remained stable at 95,547 units, reflecting the market’s maturity and continued buyer confidence.
One of the key highlights driving optimism for Q4 2025 is the GST reduction on cement and construction materials, a move expected to significantly lower project costs and enhance housing affordability. Cement GST was cut from 28% to 18%, while marble and granite rates dropped from 12% to 5%, easing the burden on developers and buyers alike. Combined with stable repo rates at 5.5% and low inflation, the policy landscape has created an ideal environment for both new investments and end-user purchases.
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The PropTiger report also noted that India’s real estate market is benefitting from a macroeconomic sweet spot, supported by GDP growth of 6.5–6.7% and the lowest inflation in six years. Moreover, the proposed Registration Bill 2025, aiming to digitize property records, is expected to bring transparency and efficiency to the property transaction ecosystem — a crucial reform for boosting investor confidence.
Regionally, southern cities continue to dominate the residential landscape. Hyderabad led the way with a 53% YoY surge in sales, driven by strong IT employment and infrastructure expansion. Bengaluru, Pune, and Chennai followed with steady launches and high end-user demand, while Kolkata surprised with a 129% rise in new launches. Meanwhile, premium markets like Delhi-NCR and MMR saw higher-value transactions but relatively softer volumes due to rising luxury pricing.
Looking ahead, Q4 2025 is expected to be one of the strongest quarters of the year, supported by festive demand during Dussehra and Diwali, continued foreign capital inflows, and attractive developer offers. With homebuyers prioritizing quality, transparency, and long-term appreciation, India’s housing market appears firmly set on a growth trajectory powered by policy reforms, affordability, and renewed consumer confidence.
