The likely Budget sops could include expansion in the definition of affordable housing by either increasing the carpet area or ticket price, increase in deductions limit, one-time exemption of GST for first-time buyers, restoration of tax benefits on a second home and measures to make REITs more attractive. Industry status is one long-pending demand from the real estate sector, which is unlikely to be fulfilled in this Budget.
IIFL Securities noted that affordable housing benefits are currently capped to houses below Rs 45 lakh. Increasing this limit will increase pre-sales volume of listed payers. If the limit is revised upwards, it will benefit listed players and demand in general. Karvy Stock Broking said that current tax exemptions of Rs 3.5 lakh for affordable housing could be enhanced further. It sees Sunteck RealtyNSE 0.16 %, Sobha, Prestige Estates and Godrej Properties to be among likely beneficiaries. Sharekhan expects an increase in the overall limit of tax exemption could be long term positive for real estate players such as DLF, Godrej Properties, Prestige Estates, Brigade Enterprise and Ashiana Housing among others. Besides, the interest on home loans is capped at Rs 2 lakh for tax benefits. Enhancing that limit is expected to bring back investor led demand.
Shares of Indiabulls Real Estate (up 3.38 per cent) , Sunteck Realty (up 3.23 per cent) , Prestige Estates Projects (up 2.53 per cent) , SOBHA (up 2.08 per cent) , DLF (up 1.69 per cent) , Brigade Enterprises (up 1.54 per cent) , Oberoi Realty (up 0.57 per cent) , Godrej Properties (up 0.43 per cent) and Mahindra Lifespace Developers (up 0.02 per cent) were among the top gainers.
The Nifty Realty index was trading 1.25 per cent up at 335.2 around 10:11 am.
Benchmark NSE Nifty50 index was up 11.65 points at 11973.75 , while the BSE Sensex was up 54.06 points at 40777.55 .
Among the 50 stocks in the Nifty index, 24 were trading in the green, while 26 were in the red.
Shares of YES Bank, Vodafone Idea, Tata Motors, SBI, PowerGrid, ONGC, BEL, Coal India Ltd, IRB InvIT Fund and NTPC were among the most traded shares on the NSE.