New Delhi, Sept. 5 -- Rationalisation of tax rates on construction material is expected to cut the construction cost for the real estate sector by 3.5 to 4.5 per cent, according to a report by Crisil Intelligence. The government has announced to cut GST rates on cement, marble, granite, sand, bricks, etc substantially, which is likely to reduce construction costs for builders.

"The construction cost is estimated to decline by 3.5-4.5 per cent. This will improve project viability, support developer margins, and (if partially passed on) enhance the affordability of home-buyers," noted the report

The report noted that the rates applicable to affordable housing (1 per cent), under-construction properties (5 per cent) and completed propertie...