NEW DELHI: Realty stocks were trading higher on Tuesday after the much-awaited Real Estate Act came into force from May 1.
The Nifty Realty index was up 2.41 per cent at 257.10 around 10.25 am (IST) with Sobha gaining the most 8.54 per cent, followed by Godrej PropertiesBSE -0.27 % (up 3.81 per cent), Indiabulls Real Estate (up 3.14 per cent), Prestige (up 3.03 per cent).
Oberoi Realty, DLF, Delta CorpBSE -0.19 % and UnitechBSE -0.36 % were also trading higher by 2.35 per cent, 2.15 per cent, 1.41 per cent and 0.88 per cent, respectively.
Developers expect housing demand to recover with the implementation of the real estate law as it will protect buyers from unscrupulous players, while prices will remain stable due to huge unsold inventory.
The two apex bodies of real estate developers — CREDAI and NAREDCO — feel that the implementation of this law will bring paradigm change in the way Indian real estate sector functions, but see some “teething” problems initially.
The Real Estate (Regulation and Development) Bill, 2016 was passed by Parliament in March last year and all the 92 sections of the Act come into effect from May 1.