DLF (up 11.50%), HDIL (up 9.54%), Peninsula Land (up 9.29%), Indiabulls Real Estate (up 8.22%), Prestige Estates (up 7.54%), Oberoi Realty (up 6.38%), Parsvnath Developers (up 5%), D B Realty (up 4.97%), Anant Raj (up 4.61%), Unitech (up 4.06%), Phoenix Mills (up 3.68%), Sobha Developers (up 2.72%), Godrej Properties (up 2.28%) and Sunteck Realty (up 1.79%), edged higher.
The S&P BSE Realty index surged 7.60% to 2,060.27. It outperformed the Sensex, which was up 1.17% at 25,741.45.
In the Union Budget 2014-15 today, 10 July 2014, Finance Minister Arun Jaitley announced a slew of measures to boost the real estate sector, including an allocation of Rs 7060 crore for the development of 100 smart cities, a reduction in the size of projects eligible for foreign direct investment (FDI) from 50,000 square metres (sqm) to 20,000 sqm and halving the minimum investment limit for FDI to $5 million.
Jaitley also allocated Rs 4000 crore to affordable housing for the urban poor through the National Housing Bank (NHB) and plans to extend incentives for housing loans. Slum development has been made part of corporate CSR activities.
The government will also provide the necessary incentives for real estate investment trusts (REITS) which will have a pass-through for the purposes of taxation, Mr Jaitley said.
REITs are expected to attract more global investment and bring transparency into the real estate sector.
REIT is like a mutual fund, except that it invests in real estate instead of securities. REITs own, and in most cases, operate income-producing real estate. Their portfolio consists of many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, and hotels.