More or less every industry group in India is overpowered by the shares of property developers which have brought forth a number of criticisms from several nooks and corners. However, after the much controversial ban on the big currency notes last year, the real estate sector is aided by the Government in more than one way. Still, according to the real estate honchos, the best is yet to come.
The huge market opportunity for the builders has created a boom in the industry, and with the Government taking a number of initiatives, affordable housing has now turned out to be one of the most clear-cut chronicles in Asian equities. Indian real estate which is considered as a channel for unaccounted cash can only get the boost from planned reforms. And, the ministry has already paved way for a number of alterations and modifications which have intent to build around 50 million rural as well as urban homes by the year 2022.
When the developers of affordable housing have been given several tax breaks and way into an institutional subsidy, the reimbursement has also been pulled out to houses having income up to 1.8 million rupees.
At the same time, with the new regulations on board and a strong focus on black money, the unwanted practitioners in real estate will surely be jettisoned. The measurement for property stock has come across a trudge of 91 percent this year, more than three times the emolument in the last BSE Sensex. After the weighting to the industry is almost doubled by UTI Balanced Fund to 2.6 percent, the stocks have gone up to at least 37 percent in last year.
Considering all the uncertainties in the sector, real estate stocks cannot be a big part of the portfolio, but it should always be measured quite ideally to get the best profit in return.