A fresh round of rate cuts on home loans by mortgage lender HDFC and top lenders like Kotak Bank, SBI and others have also boosted investor sentiment on the counter.
The Nifty Realty index, which consists of 10 top real estate companies, climbed nearly 11 per cent. This comes on top of 8.45 per cent gain on Wednesday. In the last three days, the index has climbed nearly 25 per cent.
On Thursday, Godrej Properties was the top gainer from the index, rising 17 per cent. Oberoi Realty, DLF, Indiabulls Real Estate and Sobha rallied up to 15 per cent.
Mumbai is likely to see 7,000 property registrations in September 2021, as per the estimates provided by Motilal Oswal. This will break the 10-year record for the industry. Besides, Karnataka has cut stamp duty on low-cost flats to 3 per cent from 5 per cent. It will be applicable to flats priced between Rs 35 lakh and Rs 45 lakh.
Not surprisingly, top performing realty stocks were the ones that have large business interests in Mumbai and Karnataka, where conditions have turned conducive for the industry. Other cities are also not far behind though.
Analysts have also noted that the recent traction in the industry has attracted foreign investors.
“The Indian real estate market is regaining the confidence of the global institutional investors. They see good opportunities in India across the capital stack on both the equity and debt side. Although India remains credit-starved, the space left by the NBFCs is being filled by global credit funds who are becoming quite active in the country,” said Sharad Agrawal, Executive Director for Capital Markets at Knight Frank India.
“The long-term view on India is one of uptrend on commercial absorption on the back of increasing pace of vaccination, which will translate into a strong H2 of FY22.”