Nine realty stocks rose by 0.29% to 10.84% at 11:55 IST on expectation of announcement of tax clarification regarding Real Estate Investment Trust by the finance minister Arun Jaitley in the Union Budget tomorrow, 28 February 2015.
Meanwhile, the S&P BSE Sensex was up 211.49 points or 0.74% at 28,958.14.
Among realty stocks, Sobha (up 1.51%), Unitech (up 10.84%), Housing Development & Infrastructure (HDIL) (up 6.14%), Phoenix Mills (up 1.56%), Godrej Properties (up 1.53%), Indiabulls Real Estate (up 4.38%), Anant Raj (up 2.68%), Oberoi Realty (up 4.18%) and Prestige Estates (up 0.29%), edged higher.
Finance Minster Arun Jaitley will present Union Budget 2015-16, in the parliament tomorrow, 28 February 2015. Real Estate industry is looking for tax clarity with regards to Real Estate Investment Trust (REIT) in the budget. Abolishing capital gains tax, minimum alternate tax (MAT) applicability and dividend distribution tax (DDT) would make REITs attractive for both retail and institutional investors and bring about much needed liquidity for commercial projects. Finance Minister Arun Jaitley, while presenting the Budget for 2014/15, had allowed setting up of REITs.
Industry expects finance minister to give industry status to real estate development. Industry recommends allocation of funds to kick start initiatives such as smart cities and housing for all. Increase in housing loan interest exemption, infrastructure status for integrated township and group housing, allowing ECBs in all spheres of housing and real estate development, as also in SEZ projects, encouraging foreign institutional participation in infrastructure, are some of the other expectations of the industry. Industry also expects a final directive on Real Estate Regulation Bill.
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