As per Moneycontrol reports, the real estate stocks have managed to pull off an exceptional growth by touching the decade’s highest mark this July. As real estate stocks tend to be running up its graph, investors can start sensing the opportunity and start investing in the real estate sector. As per real estate experts, the sector is expected to become the Dark Horse of 2021, even barring the possibility of the third wave of the pandemic.
Last Tuesday, the Nifty Real Estate Stock Index comprising 10 biggest real estate companies enlisted in the NSE (National Stock Exchange) clocked the decade’s high (intraday) to steal the investors attention to the sector. Experts attribute the stellar rise in the value of real estate stocks to the Work From Home culture – which has motivated more families to buy new houses, avail low interest rates and stamp duty exemptions, and the increased commercial and retail investments in the sector.
“On July 13, 2021, the realty index reached an intra-day high of 386.85 points, its highest level since December 2010. With several companies providing work-from-home options or mandates, families are rushing to purchase larger homes to improve the comfort of their working environment,” quoted a spokesperson who conducted the survey. “Furthermore, the central bank’s significant interest rate cuts over the last two years, combined with efforts like stamp duty reductions in locations like Mumbai, have boosted demand.”, he added on.
In midst of the stock gains, several stocks are still trailing behind their all time highs. Prudent real estate investors are presented with an opportunity as the real estate sector is gaining the potential to advance further. After spending a long time in limbo, the real estate sector is back with a bang. The regulatory rules are acting in favour, thanks to the implementations of the RERA regulations and Model Tenancy Act, lowest home loan interest rates and stamp duty charges.
“This notable rise in the index coincides with the improvement in business fundamentals and financials of real estate stocks. The realty index shows a breakout on the monthly charts and this calls for fresh investments at this point too. Barring the possibility of a third COVID wave impacting construction work and hampering economic activity, real estate stocks can continue their run-up, compensating for their poor performance over the past decade.”, said a realty expert.