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.

Omaxe Limited has announced a significant financial move through its wholly-owned subsidiary, Bhanu Infrabuild Private Limited. The subsidiary has successfully allotted Non-Convertible Debentures (NCDs) worth ₹19 crore to OCM India Opportunities XII Alternate Investment Fund - Scheme I, marking a notable development in the company's financial strategy.

Key Details of the Debenture Allotment

Debenture Characteristics

The NCDs issued by Bhanu Infrabuild Private Limited are characterized as:

• Senior
• Secured
• Rated
• Listed
• Redeemable
• Guaranteed

Corporate Governance and Disclosure

In adherence to regulatory requirements, Omaxe Limited has duly informed the stock exchanges about this development. The company's Board of Directors approved the allotment on August 28, 2025, demonstrating transparency in its corporate actions.

Implications and Outlook

This move by Omaxe's subsidiary to raise funds through NCDs could be seen as a strategic financial decision. The infusion of ₹19.00 crore is likely to provide additional liquidity to support the company's operations or future projects. For investors and market watchers, this development offers insights into Omaxe's financial planning and its ability to attract institutional investment.

The successful placement of these NCDs with a reputable alternate investment fund may also be interpreted as a sign of confidence in the company's financial health and future prospects. However, as with any debt instrument, it will be important for stakeholders to monitor how effectively the company utilizes these funds and manages its debt obligations going forward.

Omaxe Limited continues to be an active player in the real estate sector, and this financial move by its subsidiary underscores the group's ongoing efforts to optimize its capital structure and fund its business activities.