Realty stocks surge as Budget announces mega tax relief

Investors are now awaiting Reserve Bank of India's bi-monthly policy due next week which is expected to cut rates. Analysts said this will further boost realty stocks.

Shares of real estate companies rallied after the government announced a major tax relief, exempting income up to Rs 12 lakh from taxation. Experts believe this move will provide a significant boost to the real estate sector, particularly benefiting homebuyers.

Leading the gains, Prestige Estate surged 5 percent, Phoenix Mills jumped 4.7 percent, Macrotech Developers advanced 3 percent, Sobha gained 2.5 percent, Anant Raj rose 2.3 percent, and DLF climbed 1 percent. The BSE Realty Index also saw an uptick, rising 1.7 percent.

The government’s continued focus on affordable housing, along with a Rs 15,000 crore allocation under SWAMIH Fund 2, is seen as a commendable step toward ensuring project completion and reviving stalled developments. Experts believe these measures will enhance housing affordability, boost homebuyer confidence, and provide much-needed support to developers.

Industry leaders anticipate that these initiatives will accelerate growth, create new opportunities, and further the vision of ‘Housing for All.’ They expressed optimism about sustaining this positive momentum and delivering quality homes to aspiring buyers.

" This move will significantly boost disposable income, making homeownership more achievable for first-time buyers. The government’s continued push for affordable housing is a step in the right direction, reinforcing confidence in the sector and encouraging broader homeownership", experts said.

Investors are now awaiting the Reserve Bank of India's bi-monthly policy due next week which is expected to cut rates. Analysts said this will further boost realty stocks.