While the real estate business is capital intensive and a long gestation one, COVID-19 proved to be a boon in disguise and the S&P BSE Realty Index performed better than the broader market as well as other sectoral indices
The realty index had recovered more than 70 percent from the lows but has still not reached the pre-pandemic level. Meanwhile, Sensex is near all-time high levels
In Maharashtra, stamp duty charges are 5 percent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 percent in others.
Shares of Unitech soared 15.75 per cent, Housing Development and Infrastructure surged 7.15 per cent, Oberoi Realty gained 5.91 per cent, Sobha rose by 4.36 per cent on BSE.
In an interview to CNBC-TV18, Jai Bala, cashthechaos.com said that he is not so bullish on the market as it is giving conflicting signals, so one should wait on the sidelines for the time being.
DLF, the largest real estate firm in India, bounced back quite smartly on Monday, rising more than 5 percent on short covering.
To bring investors back into the market, realty players will have to focus on improving their cash flow position and reduce debt among others, consulting firm Knight Frank said.
The April-June quarter is unlikely to spell any cheer for real estate companies, whose stocks have been underperforming the market for a while now. Soaring interest rates have hit real estate companies on two fronts: it has pushed up their borrowing costs and at the same time, prompted many potential buyers to defer their purchases.
Rising mortgage rates and a widely anticipated price correction has seen demand curl up in India's once hot property market, burning realty stocks and blocking a USD 4 billion pipeline of initial public offerings.