Market

Realty shares gain on GST rate cut

Updated : February 25, 2019 10:36 AM IST

At 10.18 AM, the Nifty Realty Index was up over 1 percent led by Unitech, which rose nearly 4 percent

Shares of Sunteck Realty, Brigade Enterprises and Godrej Properties advanced over 2 percent

Shares of most real estate firms advanced on Monday after the GST Council reduced the tax rate on under-construction residential properties to 5 percent from 12 percent. The tax rate on affordable housing was also cut to 1 percent from 8 percent earlier.

At 10.18 AM, the Nifty Realty Index was up over 1 percent led by Unitech, which rose nearly 4 percent. Shares of Sunteck Realty, Brigade Enterprises and Godrej Properties advanced over 2 percent. Indiabulls Real Estate, Oberoi Realty and Phoenix Mills gained up to 1.5 percent.

Here are few brokerage's viewpoint on the aftermath of the GST Council's rate cut:

Axis Capital said the luxury markets will likely benefit the most because the impact of disallowing input tax credit (ITC) will be minimal in these markets. Passing on the benefits of lower GST to customers will result in improvement in volumes and thus would help stressed developers to liquidate inventory and improve their cash flow position, added the brokerage.

Motilal Oswal expects fence sitters to show interest in buying under construction property and spur demand. Under the current situation and state of the real estate market, it will be difficult for developers to pass on the increased cost which shall be absorbed into the margins, added Motilal Oswal.

Have you signed up for Primo, our daily newsletter?

It has all the stories and data on the market, business, economy and tech that you need to know.

To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more

Realty shares gain on GST rate cut

You May Also Like

China's economy slumps to 6.1% in 2019; lowest in 29 years

Fresh death warrant for Nirbhaya rapists, to be hanged on February 1 at 6 am: Delhi court

Reliance Jio net profit jumps 62.5% to Rs 1,350 crore in Q3, misses estimates

Trending on CNBC-TV18

recommended for you