1. Union Budget 2017: Realty stocks surge on hopes Arun Jaitley may push housing

Union Budget 2017: Realty stocks surge on hopes Arun Jaitley may push housing

Affordable housing company shares rose sharply ahead of the Union Budget 2017, on hopes that Finance Minister Arun Jaitley will incentivise low-cost housing via measures such as interest rate subsidies, extending the sops to the segment of the public not already covered under the Prime Minister’s housing scheme.

By: | Published: February 1, 2017 11:08 AM
bse-reu Ashiana Housing shares were up 5.88%; Indiabulls Real Estate rose 2.05%; and NBCC (India) was up 1.68%. (Reuters)

Affordable housing company shares rose sharply ahead of the Union Budget 2017, on hopes that Finance Minister Arun Jaitley will incentivise low-cost housing via measures such as interest rate subsidies, extending the sops to the segment of the public not already covered under the Prime Minister’s housing scheme.

Ashiana Housing shares were up 5.88%; Indiabulls Real Estate rose 2.05%; and NBCC (India) was up 1.68%. Other top developers including DLF, Oberoi Realty, Godrej Property were also sharply up. The Nifty Realty index rose 1.11% amid choppy markets. Shares of housing finance companies also rose. Housing Development Finance Corp – India’s largest housing financier – surged and was trading at Rs 1,383.2 up 1.27%.

The government is expected to re-categorise low-cost houses and announce interest subsidy on loans for them. It may include low-cost housing in infrastructure sector with a change in definition. Currently, affordable housing does not have a formal definition by the government but is generally considered to be what is within the affordability of those whose income is below the median household income.

You may also like to watch this

The government is learnt to be mulling 3% interest subvention for loans taken for affordable housing. The subvention will be applicable on the loan amount of up to Rs 12 lakh, while the actual loan taken may be higher.

Prime Minister Narendra Modi launched the Pradhan Mantri Awas Yojana in 2015, with an aim to help provide housing for all by the year 2022 by building 2 crore houses. The scheme provides for an upfront subsidy for low cost housing and an interest rate subsidy of 6.5% for loans up to Rs 6 lakh taken for the purpose.

Broader markets continue to be cautious, waiting to see if Jaitley announces more populist measures and thus risking fiscal prudence. BSE Sensex was up 0.15% at 27,697.51 points and NSE Nifty was up 0.05% at 8,565.85 points.

Calculate your income tax post budget 2018 through this Income Tax Calculator, get latest news on Budget 2018 and Auto Expo 2018. Like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top