Realty Stocks Trade Higher: As Prime Minister Narendra Modi on the first day of assuming office approved the construction of 3 crore houses in rural, urban regions, realty and related stocks are trading higher on BSE on Tuesday (June 11, 2024). Nifty Realty last seen was up by 1.39 per cent, or 15.05, at 1,098.70 points on Tuesday.

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While Home Finance First Company, Avaas Financiers, Hudco, NBCC India Ltd are some of the top gainers on BSE, DLF, Prestige, Oberoi Realty, and Godrej Properties have also been performing well. 

Home Finance First Company

After closing at Rs 863.85 in the previous session, Home First Finance Company India soared by 9.29 per cent to Tuesday's high of Rs 944.10.

Home Finance First Company shares were trading higher by 7.81 per cent, or Rs 67.45, at Rs 931.30 each at 11:05 am on Tuesday.

Aavas Financiers Ltd

After closing at Rs 1,734.75 in the previous session, Aavas Financiers Ltd hit a 52-week high of Rs 1,893.00 on Monday, a 9.12 per cent jump.

Aavas Financiers shares were trading up by 6.74 per cent, or Rs 116.90, at Rs 1,851.65 apiece on Tuesday.

Housing & Urban Development Corporation Ltd

After closing at Rs 267.40 in the previous session, HUDCO soared by 8.41 per cent to Tuesday's high of Rs 289.90.

The stock of HUDCO was trading higher by 6.08 per cent, or Rs 16.25, at Rs 283.65 on Tuesday.

NBCC India 

After closing at Rs 142.90 in the previous session, NBCC India shares rose by 5.39 per cent, or Rs 7.70, at Rs 150.60 on Tuesday.

DLF

After closing at Rs 847.30 in the previous session, DLF shares rose by 2.62 per cent to Tuesday's high of Rs 869.50.

DLF shares were trading up by 1.85 per cent, or Rs 15.70, at Rs 863.00 on Tuesday.

Oberoi Realty

After closing at Rs 1,899.85 each in the previous session, Oberoi Realty shares rose by 2.76 per cent to Tuesday's high of Rs 1,952.30 apiece.

The stock of Oberoi Realty was trading higher by 1.88 per cent, or Rs 35.80, at Rs 1,935.65.

Godrej Properties

After closing at Rs 2,845.20 in the previous session, the stock of Godrej Properties rose by 2.10 per cent to Tuesday's high of Rs 2,905.00.

Godrej Properties shares were trading higher by 1.97 per cent, or Rs 56.15, at Rs 2,901.35.

How RBI's repo rate may help affordable housing in India

Anuj Puri, Chairman, ANAROCK Group, said that the Reserve Bank of India's decision to keep the repo rate unchanged is a boon for the Indian real estate sector. 

"This stability ensures that home loan interest rates remain low, making housing more affordable for potential buyers. With unchanged borrowing costs, both developers and homebuyers benefit from increased market confidence and predictability," said Puri.

He further said, "The mid-range and premium property segments together account for more than 55% of the current supply. Together, they recorded approx. 76,555 units sold in Q1 2024 - nearly 60% of the total sales. The buyers of this segment are sensitive to volatile interest rates, and upward hikes would cause many of them to defer home purchases. This policy continuity supports sustained demand in these two segments.

"The affordable housing sector is, of course, most cost sensitive. While PMAY Urban has sanctioned 118.64 lakh homes against a demand of 112.24 lakh homes, affordable housing (homes priced under INR 40 lakhs) sales in Q1 2024 recorded 26,545 units - a mere 20% of the total sales. However, as we have seen, unchanged home loan rates alone are insufficient to induce new vibrancy in the affordable segment. It is hoped that the government will soon introduce further incentives to support it.

"With the mandate of a stable government now manifest in an unchanged monetary policy, the housing sector's overall growth momentum will continue."