Nifty Realty Index ends higher on RBI outlook for real estate

In the housing sector, launch of new units have slowed, though units sold have shown an uptick in some cities in recent quarters, the central bank said.

Oct 04, 2017 03:10 IST India Infoline News Service

The RBI's push for affordable housing and a positive outlook for the real estate sector helped the Nifty Realty Index inch further up, after the central bank detailed its monetary policy today.

In the housing sector, launch of new units have slowed, though units sold have shown an uptick in some cities in recent quarters, the central bank said.

RBI expects this uptick to continue, as the industry gears up for further consolidation, and as greater clarity emerges on the implementation of the Real Estate Regulatory Act across states.

RBI also urged that efforts were needed to ensure faster rollout of affordable housing projects.

"The government's initiatives in essential infrastructure, affordable housing, improved customer protection and transparency...should be positive for construction activity, if they are implemented with speed and efficiency," RBI's monetary policy report said.

Today, the RBI left its key policy rate unchanged, while retaining its neutral stance.

Meanwhile, Nifty Realty Index ended higher on Wednesday. Godrej Properties Ltd ended at Rs 642.1, up by Rs 26 or 4.22% from its previous closing of Rs 616.1 on the BSE.

Prestige Estates Projects Ltd is currently trading at Rs 277.9, up by Rs 4.4 or 1.61% from its previous closing of Rs 273.5 on the BSE.

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