By Puneet Sikka
Investing.com -- Realty stocks are again making the headlines today, with the Nifty Realty index making handsome gains for the third consecutive day today. Nifty Realty index is up by 5% today, but it has already fetched gains of 3.6% and 8.5% on Tuesday and Wednesday. It has made its 11-year high. So what are the driving factors behind this spurt?
1) Slash in stamp duty: State governments of Maharashtra and Karnataka recently announced a slash in stamp duty for property registration. For e.g., the stamp duty was cut from 5% to 3% in Maharashtra, which resulted in more than 6,000 property registrations in the Mumbai area in the first 21 days of September. Overall, the stamp duty reduction resulted in a 270% increase in registrations in Mumbai.
2) Low interest rates: The RBI has kept the interest rates low for an extended period, which has resulted in low home loan rates for property buyers.
3) Intention to buy: A survey conducted by JLL-RoofandFloor suggested that 80% of the prospective property buyers could make a purchase within the next three months.
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DLF share is already up 25% can expect correction tomorrow in real estate... what's ur viewLike 1
New EverGrande is in Making in India. Most of the properties are already vacant and new Properties starting to show on urban cities and tier-2,3 cities just a sign of money in the hand of already rich people. Go with trend and book profits on regular basis do not go long on Realty stocks.Like 5