Realty stocks gain as Delhi government maintains 20% reduction in circle rates of properties

Realty stocks gained on Friday as the Delhi government maintained 20% reduction in circle rates of properties till June 30. The shares of major real estate stocks were trading with gains on Friday. 

The shares of Godrej Properties, DLF Ltd,  Sobha Limited, Macrotech Developers Ltd and Indiabulls real estate Ltd surged between 0.50 per cent and 3 per cent on the last trading day of 2021 amid the Delhi government’s decision and optimistic stance for the realty sector in general.  

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At 10.10 am, the shares of DLF Ltd surged around 3 per cent and was trading with gains of Rs 9.50 to Rs 388.55 per share on the BSE in Friday’s intraday trade.  

Similarly, Godrej Properties stocks gained nearly 1.50 per cent to hit day high of Rs 1,878 per share on the BSE.  

The stocks of Sobha Limited, Indiabulls Real Estate and Macrotech Developers gained 0.40%, 1.10% and 1.25%, respectively, on Friday around the same time on the BSE.   

Earlier, the Delhi government on Thursday said it will continue to reduce circle rates of residential or commercial or industrial and other properties in the national capital by 20 per cent for the next six months till June 30, 2022.     

"As the third wave of Covid is approaching, it is the duty of our government to take all steps to further reduce the financial burden on the common man," Revenue Minister Kailash Gahlot told IANS.      

"This decision is expected to make it substantially cheaper for people to do property transactions and help revive the real estate sector," he said.   

To boost the slumped economy after the devastating first wave of the pandemic, the Delhi government had earlier reduced the prevalent circle rates by 20 percentage points with effect from April 1, 2021 till September 30, 2021.