Realty stocks face selling pressure; down up to 11%

Real estate stocks witnessed selling massive pressure today, falling by up to 11 per cent, after Delhi government hiked the circle rates -- the minimum valuation at which properties have to be registered -- by up to 20 per cent.
Shares of Unitech tumbled 10.77 per cent, while DLF lost 6.51 per cent on the BSE.
Among others, shares of Anant Raj fell by 6.77 per cent, D B Realty (5 per cent), Godrej Properties (4.06 per cent) and HDIL (3.18 per cent).
Tracking the losses in these stocks, the BSE realty index fell by 4.91 per cent to 1,673.48.

Home prices in the national capital are set to go up further with Delhi government yesterday hiking the circle rates -- the minimum valuation at which properties have to be registered -- by up to 20 per cent with an aim to check black money component in sale and purchase transactions.
As per the decision approved by Lt Governor Najeeb Jung, the circle rate has been increased to Rs 7.74 lakh per square metre of land from Rs 6.45 lakh in category A residential colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.

This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per sq m.
Meanwhile, in the stock market the BSE benchmark Sensex lost 431.05 points to settle at 26,775.69.