Real estate stocks on a high; Sobha gives 17.91 per cent returns

As an aftermath of the announcement related to the infrastructure status being bailed out to affordable housing, and the provision of tax sops for developers stuck with unsold assignments, to boost investment in the segment, the stock market saw a surge in the Realty stocks' value.

The value of stocks of real estate companies escalated by 20 per cent in the BSE intra-day trade, while Sobha, Vipul, Sunteck Realty, Oberoi Realty, Dilip Buildcon and Delta Corp, each surfaced above the 5 per cent mark.

Besides the relief to the realty segment, government has also attempted to introduce greater transparency and accountability in the sector, through the Real Estate Regulation and Development Act, 2016 and several other policy initiatives, along with the introduction of instruments like CMBS, Real Estate Investment Trusts, Private Equity Funding, etc.

On the other hand, a dropping interest rate coupled with a fastest growing GDP, has strengthened the government's 'Make in India' initiatives, resulting in the revival of the infrastructure and realty segment.