Shares of real estate companies were rallying for the second straight session on Thursday with the measure of real estate companies on the National Stock Exchange – Nifty Realty index – gaining as much as 16 per cent in two trading sessions. Buying in real estate shares was triggered after Karnataka government lowered stamp duty on properties between Rs 35-45 lakh to 3 per cent from 5 per cent, analysts said. Meanwhile, successful single-day flash sale by Godrej Properties in Noida also added to the bullish sentiment for real estate shares.
All the 10 real estate shares in the Nifty Realty index were trading higher with Godrej Properties being the top gainer. The stock rose nearly 7 per cent to hit record high of Rs 2,083. The country’s largest developer DLF also rose over 5 per cent to trade above Rs 400 for the first time since 2009, data from BSE showed.
Hemisphere Properties added 6 per cent, Oberoi Realty gained 4.72 per cent, Sunteck Realty advanced 3 per cent, Phoenix Mills added 2.6 per cent and Indiabulls Real Estate gained 2.55 per cent.
Godrej Properties on Wednesday said that it achieved sales of Rs 575 crore in a single day at the launch of the second phase of its project Godrej Woods in Noida. Godrej Properties sold 340 homes with an area of more than half a million square feet on the first day of launch making this one of the most successful launches in India in recent times.
Meanwhile, brokerage firm Motilal Oswal Financial Services in a report said that Mumbai is likely to see 7,000 property registrations in the current month which will be a record in last decade.
“More than 6,000 units have been registered in the first 21 days of September, surpassing the September 2018 total of 5913 units. While registrations will begin to drop with the advent of ‘Shraad,’ even if 50-100 units are registered every day, overall registrations will be 7,000 units which will be a record in last decade,” Motilal Oswal said in a report.
The average daily registration in September was 300 units, up from 225 units in August. Even without specific tax breaks or stamp duty exemptions, the numbers continue to rise. As a result, this pattern can be safely extrapolated to other big cities, Motilal Oswal added.