Realty shares rebound after FM announces measures to boost sector

Godrej Properties, Oberoi Realty, Prestige Estates and Brigade Enterprises from the Nifty Realty index were up 1 per cent each, recovering by upto 2 per cent from their respective intra-day's low.

Shares of real estate companies were in focus on Thursday, recovering from intra-day lows, after Finance Minister Nirmala Sitharaman announced a new set of stimulus measures to boost the sector.

Among individual stocks, Godrej Properties, Oberoi Realty, Prestige Estates and Brigade Enterprises from the Nifty Realty index were up 1 per cent each, recovering by up to 2 per cent from their respective intra-day lows on the National Stock Exchange (NSE). At 02:31 pm, Nifty Realty index was up 0.74 per cent, as compared to 0.68 per cent decline in the Nifty50 index.

The government announced relaxations in income tax rules to allow sale of primary residential units of up to Rs 2 crore value below the circle rate. Till now, only 10 per cent difference between the circle rate and the agreement value was allowed. To boost residential real estate sector, the Finance Minister said the differential has now been increased to 20 per cent for period up to June 30, 2021 for only primary sale of residential units of value up to Rs 2 crore.

"This measure will reduce harships faced by both home-buyers and developers and help in clearing the unsold inventory," she said.

To give relief to contractors in the construction and infra sectors, performance security deposit has been reduced to 3 per cent till December 31, 2021, for projects without any dispute. The government provided an additional outlay of Rs 10,000 crore for MGNREGS/Pradan Mantri Garib Kalyan Rozgar Yojana in FY21.