Real estate stocks gain up to 4 pc after budget announcement

Shares of real estate firms gained up to 4 per cent Friday after the government proposed extending tax sops given to these companies for developing affordable housing until next fiscal and tax exemption on notional rent for unsold inventories for two years. Shares of The Phoenix Mills rose 3.66 per cent, Oberoi Realty went up by 2.46 per cent, Indiabulls Real Estate 1.84 per cent, Sobha 1.20 per cent, Godrej Properties 0.73 per cent, DLF 0.67 per cent, Omaxe 0.49 per cent, Sunteck Realty 0.45 per cent and Prestige Estates Projects 0.37 per cent on BSE.

The BSE realty index also gained 1.33 per cent to close at 1,797.76. While presenting the interim budget for 2019-20, Finance Minister Piyush Goyal also proposed certain incentives to individual tax payers that would have positive impact on the real estate sector, which is facing a multi-year demand slowdown.

The government announced that capital gains of up to Rs 2 crore could be rolled over for investment in two housing units from the current one unit only. It also exempted tax on notional rent on a second self-occupied house. Credai's Getamber Anand said the proposal to lower GST on homebuyers is extremely encouraging. He also welcomed the two-year exemption from notional rent on unsold inventory.

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