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Realty stocks gain most on Budget moves

The realty segment saw some significant announcements in the union budget. On expected lines, the government pushed for smart cities with Rs 7,060 crore allotted for 100 such cities.

Rahul Oberoi        Last Updated: July 10, 2014  | 19:57 IST
Realty stocks gain most on Budget moves

BSE Realty index surged around 5% to 2009.72 on Thursday and was the top gainer in the list of sectoral indices as the Finance Minister, Arun Jaitley announced several measures to boost the sector.

FULL COVERAGE:Union Budget

Real estate stocks such as DLF jumped 9.22% to Rs 222.75. It was followed by Prestige Estate Projects (6.86% to Rs 252.20), Housing Development and Infrastructure (5.25% to Rs 94.30) and Indiabulls Real Estate (5.04% to Rs 87.55).

The realty segment saw some significant announcements in the Union Budget. On expected lines, the government pushed for smart cities with Rs 7,060 crore allotted for 100 such cities. Rs 12,000 crore was allocated to NHB, of which Rs 4,000 crore will be for affordable housing, indicating government's thrust towards making housing more accessible with a vision of housing for all by 2022.

The finance minister also provided necessary incentives for introduction of Real Estate Investment Trusts (REITs).

Kiran Kumar Kavikondala, director and chief executive officer, WealthRays Securities says, "Number of proposals can prove beneficial for realtors in that REITs will bring in more global investment and transparency into the highly-leveraged realty sector.  Slum redevelopment through corporate social responsibility was another innovative step."

Vineet Singh, EVP and Business Head, 99acres.com says, "Modi's Union Budget is a mixed bag of opportunities. Investments for state highways, airports, smart cities, rural housing, industrial clusters, metro rails via PPP models will provide a shot in the arm for development of new real estate clusters. Setting up of modified REITs and infrastructure investment trusts will help create more liquidity for the sector."

BUDGET SPEECH:Full text | Video


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