Upcoming GST Reforms to Strengthen Retail Real Estate

The Goods and Services Tax (GST) reforms, effective September 22, 2025, are set to give a significant boost to India’s retail real estate sector, according to an ANAROCK report. By lowering construction costs, streamlining logistics, and improving project viability, the reforms are expected to accelerate the growth of malls, shopping centres, and high-street retail spaces.

Lower Input Costs, Competitive Rentals

The reduction of GST on key construction materials will substantially cut input costs for developers, helping projects become more viable and faster to deliver. With these savings, developers will be better positioned to offer competitive rentals, strengthening the appeal of new retail spaces for brands and retailers.

Supply Chain Efficiencies

GST rationalization on logistics will further reduce supply chain costs, enhancing operational efficiency for retail projects. This move will likely encourage greater investment into organized retail infrastructure, particularly in expanding urban and semi-urban markets.

Expansion in Emerging Markets

Commenting on the outlook, Anuj Puri, Chairman – ANAROCK Group, said:

“These reforms represent a major positive shift for the Indian real estate industry. The simplified GST system will reduce administrative burdens, enabling developers to focus on timely completion of projects and customer satisfaction. For retail real estate, in particular, lower costs and smoother operations will create an environment conducive to expansion and stronger institutional investment.”

Adding to this perspective, Mayank Gupta, Chief Growth Officer, Stovekraft Limited, noted:

“The upcoming GST changes are likely to ease pressures, and this could act as a strong catalyst for retailers to accelerate expansion in Tier 2 and Tier 3 cities. With rising consumer aspirations and improving infrastructure, these markets are already on the radar of most brands. The reduction in GST on several product categories should not only amplify demand but also drive higher consumption.”

As per ANAROCK, the upcoming reforms will not only enhance project viability but also improve transparency and ease of compliance. With the festive season around the corner, the retail real estate segment is well-positioned for higher consumption and stronger growth in 2025 and beyond.