The Nifty Realty index dropped nearly 5 percent, primarily dragged down by declines in Macrotech Developers, DLF, and Oberoi Realty stocks, which fell by 3-6 percent. By around 12:20 PM, all 10 constituents of the index had decreased by 2-7 percent, with Oberoi Realty, Prestige Estates, and Macrotech Developers experiencing the most significant losses.
Shares of Macrotech Developers fell by 6 percent on January 22 after CEO Abhishek Lodha filed a lawsuit in the Bombay High Court against his younger brother Abhidandan Lodha, seeking to prevent him from using the 'Lodha' brand name or 'Lodha Group', according to CNBC-TV18.
Moneycontrol had accessed the petition by Abhishek Lodha on January 20, where the high court asked to restrain Abhidandan Lodha from selling, advertising or marketing same goods or services offered by Macrotech.
Macrotech Developers and DLF have posted negative weekly returns for the past four weeks. Meanwhile, Oberoi Realty, which delivered positive returns from September 2024 to December 2024, has seen a sharp decline of over 24 percent in January 2025.
Shares of Oberoi Realty fell nearly 8 percenr on January 21 after the company reported Q3 FY25 results that missed market expectations. The Mumbai-based premium real estate developer posted a 71.7 percent year-on-year (YoY) increase in net profit to Rs 618.4 crore, compared to Rs 360.2 crore in Q3 FY24. Revenue from operations rose 34 percent YoY to Rs 1,411 crore, while EBITDA surged 68 percent to Rs 856 crore from Rs 509.5 crore in the same period last year.
The company's board has declared a third interim dividend of Rs 2 per equity share (20 percent of the face value). The record date for the dividend is January 24, with payments starting from February 10.
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Punit Shah, Partner at Dhruva Advisors, believes that Budget 2025 offers a transformative opportunity to enhance housing affordability for first-time buyers.
"By combining targeted tax benefits, innovative financial incentives, and streamlined regulatory reforms, the government can create a robust framework that encourages homeownership," Shah said. "Addressing critical issues such as higher interest deductions, incentivizing states to reduce stamp duties, and promoting green housing can significantly ease the burden on new buyers."
Saurabh Runwal, Director of Runwal Realty, highlighted the transformative potential of the upcoming budget for India's real estate sector, which is currently valued at over $477 billion and is projected to reach $1 trillion by 2030.
Runwal said, "The need for policy measures that enhance liquidity is critical, and this includes reducing long-term capital gains taxes, streamlining REIT regulations, and increasing interest rebates for housing loans. "
"These reforms will drive both domestic and foreign investments, enabling developers to access capital more competitively, and homebuyers to realize their dreams of owning property, especially with the luxury market seeing a 51 percent growth in demand," he added.
The S&P BSE Realty Index was down 4.6 percent. The index has declined 17.7 percent over the past 30 days and is down 0.2 percent over the last year.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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