 "Realty shares gain as Rajya Sabha passes Real Estate Bill")
Shares of real estate companies were trading higher on the bourses after the Rajya Sabha on Thursday passed by voice vote a real estate regulation Bill, aiming to protect homebuyers from erring developers besides bringing transparency in the sector.
Among the individual stocks, Zandu Realty soared 11%, while Ajmera Realty & Infra India and Kolte-Patil Developers have rallied 9% each.
Among the individual stocks, Zandu Realty soared 11%, while Ajmera Realty & Infra India and Kolte-Patil Developers have rallied 9% each.
DLF, Housing Development & Infrastructure (HDIL), Phoenix, Indiabulls Real Estate, DB Realty, Anant Raj Industries, Oberoi Realty, Sobha and Godrej Properties were up between 2%-4% on the BSE.
At 09:33 a.m. the S&P BSE Realty index was up nearly 3% as compared to 0.31% rise in the S&P BSE Sensex.
This Act will lead to the creation of regulator for the real estate sector to protect the interest of buyers by providing a uniform regulatory environment. This will also ensure a level field for developers.
According to CRISIL Research, the Act will improve buyer confidence and boost demand for residential real estate. It incorporates mandatory disclosure clauses, which would provide greater clarity on project standards and timelines for completion.
For developers, while this Act implies stricter regulatory control, it will also translate into better demand, as buyer confidence improves. In terms of supply, delays in handover of projects are likely to decline as clauses mentioned in the Act mandate strong commitment from developers to complete projects as per schedule, added report.
“The passing of Real Estate Bill, 2016 in Rajya Sabha is a landmark step towards enhancing the credibility of construction industry by bringing in transparency and accountability in execution of projects. The passing of bill should enable timely approval and execution of projects which will raise the confidence of consumers and also give a huge boost to the growth of real estate sector”, said Mr. Harshvardhan Neotia, President, FICCI.