The implementation of Real Estate Regulation Act will bring into limelight the stocks of real estate companies when the stock markets open on Tuesday. The BSE Sensex and NSE Nifty were closed on Monday on account of Maharashtra Day.
Experts have pinned their hopes on the Real Estate Regulation Act and see it as an act that 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 the Act promotes accountability, transparency and efficiency in the sector. 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.
Stocks of realty companies like Oberoi Realty, Shobha, Sunteck Realty, Indiabulls Real Estate, DLF, Unitech will be in focus on Tuesday with the implementation of RERA. It is to be seen whether stocks will soar, drop or remain volatile to the various provisions of the Real Estate Act.
Stocks of DLF, Unitech, Sunteck Realty, Oberoi Realty and Sobha Limited closed down 1.90 per cent, down 0.88 per cent, up 1.88 per cent, down 0.40 per cent and down 1.06 per cent respectively on Friday. Shares of DLF currently trading at Rs 186.00 on the BSE, up 56.63% since beginning of 2017; Unitech currently at Rs 5.65, up 32.01%; Sunteck Realty currently at Rs 445.30, up 98.18%, Oberoi Realty currently at Rs 396.40, up 27.38%, Sobha Limited currently at Rs 371.65, up 49.33%.
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.
So far, only 13 states and UTs have so far notified the rules. Uttar Pradesh, Gujarat, Odisha, Andhra Pradesh, Maharashtra, Madhya Pradesh and Bihar have notified the rules. The Housing Ministry had last year notified the rules for five Union Territories–Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, and Lakshadweep, while the Urban Development Ministry came out with such rules for the National Capital Region of Delhi. The other states and UTs will have to come out with their own rules.