Real estate shares in focus; DLF, HDIL, Indiabulls up over 3%

DLF, HDIL, Indiabulls Real Estate, NBCC, DB Realty and Kolte Patil were up between 2% to 5%.

Shares of real estate companies have rallied by up to 5% on the National Stock Exchange (NSE) in an otherwise weak market on back of heavy volumes.

DLF, Housing Development and Infrastructure (HDIL), Indiabulls Real Estate, Ansal Properties, NBCC, DB Realty and Kolte Patil Developers were up between 2% to 5% on the NSE.

At 10:13 am; the Nifty Realty index, the largest gainer among sectoral indices, was up 2% as compared to 0.04% decline in the Nifty 50 index.

Thus far in 2017, in past 11 trading sessions, realty index has outperformed the market by surging 10% after Prime Minister Narendra Modi on December 31, 2016 announced new schemes to boost the housing sector. The benchmark index was up 2.5% during the same period.

In his address to the nation, PM Modi said home loans in urban areas up to Rs 9 lakh and Rs 12 lakh will receive interest subvention of 4% and 3%, respectively. Also, in rural areas home loans up to Rs 2 lakh will get interest rebate of 3%. The number of houses being built for the poor in rural areas under the Pradhan Mantri Awaas Yojana is being increased by 33%.

According to Business Standard reports, given the government’s ambition of “Housing for all”, it is expected that the interest deduction on self-occupied house property could be enhanced from Rs 2 lakh to Rs 2.5 lakh per annum.

Also, the limit on the number of years to construct or purchase a house property is expected to be liberalised or rationalised, considering the slow growth of the real estate sector and delayed possession due to defaults by builders, added report. CLICK HERE TO READ FULL REPORT.

Meanwhile, analyst at Edelweiss Securities expects demonetisation to hurt residential demand across markets in short term, while pricing could also come under pressure.

“Severity of the impact would depend on the extent of cash used in transactions earlier in market. However, in we expect demand to revive medium term given long?term demand drivers (job creation, rising salaries, urbanisation, family nuclearisation and supportive macros) remain intact and should lead to stable capital values,” the brokerage firm said in Q3 earning preview.

We estimate minimal impact of demonetisation on office space and expect it to remain robust. In view of uncertain demand outlook for residential space, operational scale up for most listed players could be limited, added report.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
DLF	129.90	124.10	4.67
VIPUL LTD	86.90	83.90	3.58
H D I L	64.60	62.55	3.28
INDBULL.REALEST.	81.00	78.80	2.79
D B REALTY	39.50	38.45	2.73
ANANT RAJ	44.00	42.85	2.68
ANSAL PROPERTIES	15.40	15.02	2.53
SWAN ENERGY	174.40	170.10	2.53
SOBHA	270.00	263.45	2.49
UNITECH	4.57	4.46	2.47
KOLTE PATIL DEV.	90.85	89.00	2.08
NBCC	279.75	274.30	1.99
SUNTECK REALTY	251.50	246.85	1.88
PURAVANKARA	44.70	44.15	1.25
GODREJ PROPERT.	335.50	331.75	1.13
J KUMAR INFRA	242.70	240.05	1.10
OMAXE	161.20	159.60	1.00