September 26, 2025

Hold on to your shopping bags! The recent GST cuts on textiles and footwear priced below Rs 2,500 might put a smile on the faces of shoppers, but the real magic is expected in bigger purchases. Market expert Sunil Subramaniam told ET Now that while these cuts will help with small buys, the bigger wave will come from heavy-hitters like consumer durables, cars, and real estate. He explained, “At the lower end, people may advance their replacement cycles slightly, but the bigger impact will be seen in EMI-based purchases such as consumer durables, automobiles, and even real estate.” So, while you enjoy a new pair of shoes, get ready for some blockbuster buys during the festive season! Why Festive Season Means Big Money? It's no secret that festivals get us craving shiny new things — cars, refrigerators, air conditioners! With GST cuts lowering prices on big durables (some down from 28% to 18% or even 12% to 5%), sunil expects customers to save some bucks on small stuff and splurge on costly items. What about real estate? Here’s the twist. Subramaniam says the slump in real estate is just a short break. Monsoons slow down construction, and builders have been focusing more on premium homes, leaving affordable housing in the shadows. But don’t lose hope! Thanks to GST cuts on cement and lower EMIs due to rate cuts, affordable housing could rise like a phoenix in the next 6 to 12 months. He adds, “The real estate sector needs time to realign—developers have to acquire land, plan, and launch affordable projects. By the second half of the year, supported by lower EMIs and GST benefits, affordable housing could see a boom.” So, if you have been eyeing a cozy, budget-friendly home, your dreams might come true soon! And for the savvy investors worried about real estate stocks, Subramaniam offers advice: “Do not expect an immediate bounce back, but in the medium to long term, the combination of GST cuts and lower interest rates will make real estate, especially affordable housing, an attractive play.” In short, GST 2.0 is shaking up markets with a fast track boost for consumer goods and a slow-cooking revival for homes. So, buckle up for a shopping fiesta that covers everything from your next pair of shoes to your dream house!

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Tags: Gst cuts, Textiles, Footwear, Festive season, Real estate, Consumer durables,