Real Estate Stocks

With the word real estate is associated a huge amount of money to be blocked in, to own a piece of cake, a property. Requirement of higher investment makes investment in real estate a dream for many classes of investors. To make it feasible for investor to invest in real estate, we have option to invest in companies, who are players in real estate market, through equities. We can buy shares of firms like DLF, HUDCO, Oberoi realty. These are few top real estate stocks listed on NSE. For more information in details you can ask from SEBI Registered Research Analyst at Advisory Mandi.


We are more interested in returns, as per the latest report of NSE, published in june2017, in past year Nifty realty has been the best performer among all the sectors available in the index, and has given a return of 36.43%, talking of year till date return, it has given a massive71.12% of return.
All these returns were pre GST, a tax, which came in force from 1st July, with a motto of “One Nation, One Market, and One Tax”. So before entering the sector and investing into it, me must be aware of how has the GST affected the players in the industry, be it a buyer, seller, investor, developer, intermediary or be a financier.
Pre GST a buyer was over burden with taxes like VAT, service tax, stamp duty and registration charges over under construction property. In case of completed property, a buyer had to pay VAT, stamp duty and registration. Most of these taxes were state levied, and each state had their own numbers in their tax kitty. All these made process of owning a real estate a cumbersome process.
However post GST, taxes have increased to 12% from previous cumulative tax of 5%, but the process has become simpler. But the fact of increase in cost can’t be brushed off, and it is well observed in real estate stocks.  As Real estate demand continue to remain tepid and it can even be seen as an aftermath of demonetisation.
Builders were cornered using RERA ACT, which addressed to ensure transparency, accountability, standardisation and consistency by regulating the actions of the builders, which ultimately instil confidence among buyers, thus being a favourable point for the industry.
Further providing push in the real estate is the Pradhan Mantri Awaas Yojna, helped in investing in real estate, an approachable class of asset for the investors, thus increasing a set of buyer. All these aspects, aided industry to overcome the aftermath of demonetisation and GST.

Looking at post GST performance, Realty nifty did go up from, which shows the confidence on investors have increased post GST on ease of doing business in real estate market. On 1st July, a historic day for India, Realty nifty touched a high of 252.95.In the coming time, market expects demand for offices, residential complexes and warehouses are expected to increase in the present year, which will prove positive for real estate players. Real States are on buying spree to capitalize on REIT, which is expected to be launched in India soon.  

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