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Realty shares rally as Maha govt slashes premium for construction by 50% Shares of real estate companies were in focus, surging by up to 7 per cent, on the BSE in the early morning trade on Thursday after the Maharashtra government on Wednesday slashed premiums and levies charged on construction by 50 per cent till December 31 2021. The move is expected to give a boost to the real estate sector in the state.
Following the development, shares of Sobha, Indiabulls Real Estate, Sunteck Realty, Oberoi Realty and Godrej Properties rallied between 5 per cent and 7 per cent on the BSE in the intra-day trade. At 09:27 am, the S&P BSE Realty index, the top gainer among sectoral indices, was up 2.8 per cent as compared to a 0.57-per cent rise in the S&P BSE Sensex. The realty index hit 52-week high of 2,607 in the intra-day trade today. According to a Business Standard report, the cut, under the Development Control and Promotion Regulation 2034, will apply to both ongoing and new projects. Municipalities charge this premium on floor space index (FSI). "This move will go a long way in expediting project completion and the market will witness new launches. The industry applauds this booster dose making many projects viable and we shall adhere to the rules laid down in lieu of availing these benefits," said Niranjan Hiranandani, Chairman at Hiranandani Communities.