Realty stocks were in demand after the Union Budget 2021 granted impetus to affordable housing in India.
In the Union Budget today, 1 February 2021, Finance Minister Nirmala Sitharaman said this government sees 'Housing for All' and affordable housing as priority areas. In order to incentivise home buyers and real estate developers, it is proposed to increase safe harbour limit from 10% to 20% for the specified primary sale of residential units.
In the previous budget, the government provided an additional deduction of interest, amounting to Rs 1.5 lakh, for loan taken to purchase an affordable house. FM proposed to extend the eligibility of this deduction by one more year, to 31 March 2022. The additional deduction of Rs 1.5 lakh shall therefore be available for loans taken up till 31 March 2022, for the purchase of an affordable house.
FM proposed that affordable housing projects can avail a tax holiday for one more year - till 31 March 2022. Sitharaman also proposed to allow tax exemption for notified Affordable Rental Housing Projects.
The Nifty Realty index jumped 3.12% to 315.20. IndiaBulls Real Estate (up 5.78%), The Phoenix Mills (up 4.92%), Prestige Real Estates (up 4.04%), DLF (up 3.43%), Omaxe (up 2.51%), Godrej Properties (up 2.42%), Oberoi Realty (up 2.20%), Brigade Enterprises (up 1.28%) and Sunteck Realty (up 1.18%) advanced.
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