Stock markets have been witnessing heavy buying in real estate shares today. This boost for realty stocks is the result of fresh buying that has lifted the BSE Realty index by 1.73 per cent in the intraday trade. Why are realty stocks skyrocketing? Well, most market experts were left scratching their heads about the reason for the rise in real estate share prices. The real reason was that Zee Business TV had exclusively reported today that the government is set to grant infrastructure status to the real estate sector and on top of that it will give an income tax rebate to homebuyers too of up to Rs 50,000! The decision in this regard might be taken ahead of the Union Budget 2020 or may in the Union Budget 2020, Zee Business TV reported. That is the reason why real estate stocks are rising today.
Elaborating upon the benefits of infrastructure status would bring to the real estate sector, Zee Business TV further reported that once infra status becomes available for the entire real estate sector, funding problems would get sorted out to a large extent as long-term lending would become easier, cost of funding will go down as interest rates of the loans would fall and there will be an easing of sectoral caps as well.By 1:30 PM when this report was written, realty major Indiabulls Real Estate share price had skyrocketed 4.45 per cent, shares of Prestige Estates Projects soared 3.67 per cent, Oberoi Realty counter went up 2.65 per cent, DLF went northward near 2.1 per cent, Puravankara stocks were 4.5 up, Kolte Patil counter shot up 3.5 per cent while Ajmera Realty share price scaled 5 per cent.