BSE Realty index hits 15-year high; Prestige Estates Projects rises 8.6%

The index, representing the performance of real estate stocks, climbed 4.1 per cent to close at Rs 4,842.12, marking its highest level since 12 September 2008

The S&P BSE Realty Index hit a 15-year high on Tuesday following an encouraging operational update from listed firms and optimism on a real estate upcycle.

The gauge for the performance of real estate stocks rose 4.1 per cent to finish at 4,842.12, the highest closing mark since September 12, 2008.

All 10 components of the BSE Realty Index ended with gains by Prestige Estates Projects, which rose 8.6 per cent followed by Sobha.

Last week, Prestige announced that its sales had more than doubled to Rs 7,093 crore during the second quarter ended September 2024 (Q2FY24).

Sobha announced it had the highest-ever sales during the quarter at Rs 1,724 crore. Mumbai-based Ajmera Realty on Tuesday said its sales grew 52 per cent to touch Rs 252 crore in Q2FY24. Its stock jumped 13 per cent to finish at Rs 423.

The real estate sector has been among the best-performers this year on Dalal Street. The BSE Realty is up 40 per cent this year even as the benchmark Sensex has gained 9 per cent.

The realty sector was the worst-hit following the financial crisis in 2008. The BSE Realty Index still trades over 60 per cent below its record levels of 12,400, hit in December 2007.