Realty stocks buzz; govt to tweak norms for interest subsidy

The stocks of realty companies spiked up on Friday following Cabinet's approval to increase the carpet area of houses eligible for home loan interest subsidy. The interest subsidy is given under the Credit Linked Subsidy Scheme (CLSS) for urban borrowers eligible under the Pradhan Mantri Awas Yojana (PMAY).

Under PMAY (Urban) CLSS for the Middle Income Group (MIG) I will be increased from the existing 90 square metre to 120 square metre and for MIG II category it will be increased from 110 square metre to 150 square metre. This move will help address the challenges of the urban housing shortage and boost the sale of ready to move flats in the affordable housing sector.

Reacting to the news, the S&P BSE Realty index was at 2323.61 points, up 2.01 per cent, while the Nifty Realty index was at 308.15 point, up by 2.04 per cent, at 11:29 hours on Friday.

Among the realty stocks Prestige Estate was trading at Rs. 308.90 per share, higher by 5.14 per cent, Godrej Properties was at Rs. 691.75, up 3.76 per cent, Indiabulls Real Estate was at Rs. 217.25, up 3.48 per cent, Sobha was at Rs. 532.00, up 2.14 %. While Phoenix Limited was at Rs. 514.25 per share, down by 0.54 per cent, Oberoi Realty was at Rs. 464.00, down 1.26 per cent.