Shares of real estate companies have rallied by up to 6%, extending their Thursday’s rally, after key positive announcements made by the Finance Minister in Budget 2014-15.
Prestige Estates and Oberoi Realty have rallied 6% each, whie D B Realty, Phoenix Mills, Godrej Properties, Housing Development and Infrastructure (HDIL) and Unitech are up 2-4% on the Bombay Stock Exchange (BSE).
At 1025 hours, S&P BSE Realty index was up 2.3% at 2,056 points, rally 7.4% in past two trading sessions. The benchmark S&P BSE Sensex however, declined marginally 0.07% at 25,427 during the period.
In order to stimulate growth in the real estate sector, there were many expectations from Budget 2014-15 such as increase in the tax exemption limit on interest payments on home loans, and separate tax exemption for principal repayments (over and above benefits under section 80 C).
Moreover, the reality players wished for greater clarity on Real estate investment trust (REITs), rationalization of tax structure for SEZs, and extension of incentive for affordable housing.
Rohit Inamdar, Senior Vice President of ICRA says the Budget 2014-15, has been positive for the real estate sector.
The key positives include the reduction in FDI eligibility threshold and tax incentives for REITs, both of which would stimulate investment in the sector. Allocation of Rs 7,060 crore towards Smart Cities would give a boost to large scale township projects, he adds.
Prestige Estates and Oberoi Realty have rallied 6% each, whie D B Realty, Phoenix Mills, Godrej Properties, Housing Development and Infrastructure (HDIL) and Unitech are up 2-4% on the Bombay Stock Exchange (BSE).
At 1025 hours, S&P BSE Realty index was up 2.3% at 2,056 points, rally 7.4% in past two trading sessions. The benchmark S&P BSE Sensex however, declined marginally 0.07% at 25,427 during the period.
In order to stimulate growth in the real estate sector, there were many expectations from Budget 2014-15 such as increase in the tax exemption limit on interest payments on home loans, and separate tax exemption for principal repayments (over and above benefits under section 80 C).
Moreover, the reality players wished for greater clarity on Real estate investment trust (REITs), rationalization of tax structure for SEZs, and extension of incentive for affordable housing.
Rohit Inamdar, Senior Vice President of ICRA says the Budget 2014-15, has been positive for the real estate sector.
The key positives include the reduction in FDI eligibility threshold and tax incentives for REITs, both of which would stimulate investment in the sector. Allocation of Rs 7,060 crore towards Smart Cities would give a boost to large scale township projects, he adds.
