Stocks of realty majors hogged limelight and were on a gaining spree in Tuesday’s trade after the Real Estate Regulation Act (RERA) came into force on Monday. The Act is expected to revive the sector by making it more transparent and accountable. The S&P BSE Realty Index was trading 2.95 per cent up at 1980.67 at 9.55 am with the majority of the index components opening higher than their last close. BSE Sensex was trading 147.88 points up at 30,066.28 during the same time. Domestic markets were closed on Monday on account of Maharashtra Day.
Stock price of Sobha was up 6 per cent at Rs 394.00, India Bulls Real Estate was trading 4.94 per cent up at Rs 157.15, Godrej Properties was up 2.16 per cent at Rs 474.00, Unitech shares were up 1.77 per cent at Rs 5.75; Prestige Estates Projects up 1.72 per cent at Rs 239.70; Housing Development and Infrastructure Ltd up 2.64 per cent at Rs 93.20; Oberoi Realty up 1.01 per cent at Rs 400.40; DLF up 2.90 per cent at Rs 191.40; Omaxe Ltd up 0.085 at Rs 192.75.
Experts have pinned their hopes on the Real Estate Regulation Act and hope that it will revive the sector as it has provisions that protect home buyers’ right. Describing it as a move that will make home buyers a king, Union Minister M Venkaiah Naidu said that RERA promotes accountability, transparency, and efficiency in the sector. The Parliament had passed The Real Estate (Regulation and Development) Bill, 2016 in March last year and all the 92 sections of the Act comes into effect on May 1.
The government has taken many measures in the recent past to give a boost to the sector. The Reserve Bank of India during its last policy meet on April 6 allowed banks to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This seen as a move that will provide much-needed impetus to the sector.
CBRE in its report– Asia Pacific Real Estate Market Outlook 2017 – India said the outlook for the year 2017 is positive as it is a year of fructification – with the results of all policy initiatives taken in 2016 beginning to take shape. It further added that steps like Real Estate Regulatory Act (RERA), Goods and Services Tax (GST) and Real Estate Investment Trusts (REITs) are expected to boost the overall sentiment of the sector.