Cement-GST cut, stable rates and festive demand to lift housing in Q4 2025
Source: Economic Times ( https://bit.ly/48nvMPP )
India’s housing market is poised for a boost in Q4 2025, thanks to a confluence of favourable factors: potential cost savings from a cut in GST on cement and other construction materials, stable interest rates, and the traditional surge in demand during the festive season. The latest PropTiger report suggests these tailwinds may spur increased homebuying activity and revived confidence in the real-estate sector.
Data from Q3 2025 shows that new housing supply rose by 9.1% quarter-on-quarter to about 91,800 units, even as overall home sales remained broadly stable, at roughly 95,500 units. The modest dip in volumes did not dampen enthusiasm: total sales value climbed sharply by 14% year-on-year, signaling that buyer focus is shifting decisively toward premium and high-value homes rather than entry-level housing.
This value-driven shift reflects a maturing real-estate market where buyers — buoyed by stable rates and improving economic sentiment — appear willing to spend more for better-quality homes with long-term appreciation potential. The expected GST reduction on building materials could lower construction costs, thereby easing pressure on developers to keep prices high, which may benefit buyers.
Additionally, the upcoming festival season traditionally brings upticks in property launches and demand, as many homebuyers consider festivals as auspicious times to make purchases. Coupled with cost and rate stability, this could generate meaningful traction in sales and new launches.
If these conditions play out as projected, Q4 2025 could mark the start of a broader residential real-estate revival — one characterized by higher-end supply, stable prices, and renewed buyer confidence, rather than a scramble for affordable housing. For developers, it may be an opportune moment to launch quality projects; for buyers, an opportunity to enter the market with a clearer sense of value and timing.
