Omaxe Limited , a prominent real estate developer, has achieved a significant milestone in its New Chandigarh project. The company's wholly-owned subsidiary, Omaxe New Chandigarh Developers Private Limited, has successfully obtained the Real Estate Regulatory Authority (RERA) registration for its 'Gardenia Floors Phase 2' project.

Project Details

The RERA registration certificate, bearing the number PBRERA-SAS80-PR1260, was issued by the Punjab Real Estate Regulatory Authority. This registration is a crucial step for the company, as it allows them to proceed with the residential development project in New Chandigarh, Punjab.

Key Information

Here are the essential details of the project:

Significance of RERA Registration

The RERA registration is more than just a regulatory requirement. It signifies several important aspects for both the company and potential homebuyers:

1. Compliance Assurance: The registration certifies that the project complies with RERA regulations, ensuring adherence to quality and delivery standards.

2. Enhanced Credibility: It boosts the project's credibility in the real estate market.

3. Timely Delivery: RERA registration is aimed at ensuring timely project completion and delivery to homebuyers.

4. Transparency: It fosters trust with buyers by guaranteeing transparency in the project's details and legal protection.

5. Marketing Authorization: The approval enables Omaxe to sell, transfer, or advertise the Gardenia Floors Phase 2 project.

Impact on Omaxe Limited

For Omaxe Limited, this development is expected to have a positive impact. The company anticipates that the RERA registration will strengthen its brand value and potentially contribute positively to its consolidated financial performance.

The real estate sector in India continues to evolve with regulatory measures like RERA, aimed at protecting homebuyers' interests and promoting transparency in the industry. Omaxe's compliance with these regulations for its New Chandigarh project demonstrates its commitment to these principles and its confidence in the project's viability.

Investors and potential homebuyers can access more details about the Gardenia Floors Phase 2 project on the Punjab RERA website ( www.rera.punjab.gov.in ) and Omaxe's official website ( www.omaxe.com ).

In a move set to benefit the real estate sector, particularly the affordable and mid-market housing segments, recent GST rate cuts on key construction materials are expected to reduce overall construction costs by 2-4%. This development comes as welcome news for both developers and homebuyers, potentially stimulating the housing market.

GST Rate Reductions

The Goods and Services Tax (GST) Council has implemented significant rate cuts on essential construction materials:

• Cement: GST rate reduced from 28% to 18%
• Marble and granite: GST rate lowered from 12% to 5%

These reductions are anticipated to have a substantial impact on the construction industry, given that material costs typically account for 50-60% of total construction expenses, according to Mohit Goel, Managing Director of Omaxe Ltd .

Gradual Implementation and Impact

The cost savings from these GST rate cuts are expected to be realized gradually:

• Timeframe: One to two quarters
• Implementation: As new tenders are issued and fresh material orders are placed
• Tender negotiations: Expected to reflect new GST rates within 30-90 days
• Market pricing adjustments: Visible changes anticipated over the next three to nine months

Benefits to Affordable Housing

The affordable and mid-market housing segments are poised to benefit the most from these GST rate reductions. These sectors are particularly sensitive to material costs due to their tight profit margins.

Timing and Market Dynamics

The timing of these GST rate cuts coincides with the festive season, which traditionally sees a 15-20% increase in housing enquiries. This alignment could potentially amplify the positive impact on the real estate market.

Future Outlook

The combination of GST rate cuts and stable interest rates is expected to create a favorable environment for the real estate sector:

• Encouragement of new project launches
• Acceleration of housing supply in key urban markets

As these changes take effect, the real estate industry anticipates a boost in activity, potentially leading to increased affordability and accessibility in the housing market, particularly in the affordable and mid-market segments.

Developers and homebuyers alike will be watching closely as these changes unfold, with the potential for a more vibrant and accessible housing market in the coming months.