New Delhi, In a surprising turn of events, real estate stocks experienced a downturn on February 1 following the unveiling of the interim Budget 2024, which lacked significant announcements for the sector. Finance Minister Nirmala Sitharaman’s speech did not include any big-bang initiatives, leading to a decline in shares of key players in the real estate market.
Prestige Estates Ltd witnessed a 2.24% decrease in its shares, while other major players such as Sobha Ltd (1.88%), Oberoi Realty (1.59%), and Godrej Properties (0.80%) also faced declines on the BSE.
However, some real estate firms managed to defy the trend. Signature Global, focusing on affordable housing, saw a 2.08% increase in its stocks. Housing & Urban Development Corporation Ltd, responsible for government project housing, experienced a notable surge of 19.62%, and NBCC also saw a positive movement with a rise of 9.78%.
Finance Minister Sitharaman did announce a housing scheme for the middle class in her Budget 2024 speech, aiming to facilitate home ownership. The Pradhan Mantri Awas Yojana (Rural) received attention as well, with the government nearing its goal of constructing 3 crore houses in rural areas. Sitharaman pledged support for the construction of an additional 2 crore houses in the next five years under PMAY (Rural).
Analysts offered mixed reactions to the budget. Anuj Puri, Chairman of ANAROCK Group, remarked, “As anticipated, the Interim Budget 2024 made no big-bang announcements, but it continued its focus on infrastructure upgrades and building connectivity across the country. This will benefit real estate growth in not just the top cities but in Tier 2 and 3 cities across the country.”
Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, noted that while the interim budget avoided major announcements, it maintained a focus on fiscal prudence, setting the fiscal deficit target at 5.1%. The budget, according to Das, continues to push the growth agenda.
