Shares of real estate companies have rallied on the bourses on back of heavy volumes. Peninsula Land, DB Realty, Purvanankara Projects and Anant Raj Industries are trading higher in the range of 6-9% on the BSE.
The Bombay Stock Exchange, Realty index, the largest gainer among sectoral indices up 2.18% compared to 0.63% rise in benchmark index Sensex at 1416 hours.
According to Knight Frank, a real estate advisory firm, the real estate sector will continue to remain an attractive investment destination with the possibility of prices in residential areas by up to 145% in select cities over the next five years.
“High possible return on investments ranging between 18.6% and 29% per annum over the next five years will emerge as a key driver for investors' interest in the real sector,” as per report prepared by Knight Frank, the PTI report suggests.
Meanwhile, the market expert expects new guidelines for non-banking housing finance companies (HFCs) to fast track funding for the housing sector in 2013.
“There will be more liquidity available in the housing finance market as rules for raising external commercial borrowings will be relaxed for HFCs, and with SEBI allowing debt funds to invest an additional 10% in HFCs. HFCs will also look at tapping the QIP market to raise funds in 2013,” said Ramesh Nair, managing director (West), Jones Lang LaSalle India, a financial and professional services firm specializing in real estate services.
Among the individual stocks, Peninsula Land has locked in 10% upper circuit at Rs 69.95 on the BSE. The trading volumes on the counter more than doubled with a combined 1.72 million shares changing hands so far.
DB Realty has surged 8% to Rs 123, followed by Anant Raj Industries (up 7% at Rs 93) and Puravankara Projects (up 6% at Rs 83).