Phoenix Mills, Macrotech, DLF, Oberoi Realty shares: What Budget 2025 offers for real estate sector

Realty stocks such as DLF, Sobha Ltd, Oberoi Realty, Prestige Estates, Phoenix Mills and Macrotech Developers rose up to 9% on Saturday after FM Nirmala Sitharaman announced several measures for the real estate sector. Prestige Estates shares closed 5.03% higher at Rs 1431.50 on February 1 against the previous close of Rs 1363 on BSE. Market cap of Prestige Estates climbed to Rs 61,659 crore. Similarly, shares of NCR-based developer DLF closed 2.10 per cent higher at Rs 760.75 on BSE. Market cap of DLF climbed to  Rs 1.88 lakh crore.

Here's a look at four major announcements for real estate sector, which are likely to keep the sentiment positive around the real estate stocks in the near future. 

SWAMIH Fund 2

SWAMIH Fund 2 is related to establishment of Rs 15,000 crore for expeditious completion of 1 lakh units for affordable and mid-income housing as a blended facility between GOI, banks and private investors.

Tax benefits of up to 2 self-occupied properties

Tax payers can claim the annual value of self-occupied properties as Nil for 2 self-occupied properties instead of 1 earlier and without any condition.

TDS on Rent

The annual limit for Tax Deducted at Source on rent increased from Rs 2.4 lakh to Rs 6 lakh, thus benefitting small tax payers receiving small payments.

Smart City Mission

25% increase in allocation from Rs 8,000 crore to Rs.10,000 crore in AMRUT and Smart Cities Mission. Higher allocation will have positive impact on building materials to some extent.

Meanwhile, Oberoi Realty stock also closed 1.83% higher at Rs 1845.65. Market cap of the realty firm climbed to Rs 67,108 crore on February 1.

Shares of another real estate major Phoenix Mills closed 7.27 per cent higher at Rs 1761.55 on BSE. Market cap of the firm rose to Rs 62,975 crore. 

Shares of South India-based developer Sobha rose 4.10% to Rs 1,378 in the previous session. Market cap of the firm climbed to Rs 14,731 crore. 

Mumbai-based Macrotech Developers shares ended 6.31% higher at Rs 1280 on BSE. Market cap of the firm reached Rs 1.27 lakh crore.

The positive impact of the Union Budget on realty stocks was also  felt after FM Sitharaman said no income tax would be payable on income up to Rs 12 lakh under the new tax regime. This will leave more money in the hands of salaried taxpayers and result in more consumption with some of the savings expected to flow into the real estate sector.            

On February 1, the BSE realty index closed 3.69% or 264 pts higher at 7,414. 

The index has surged 10.74% since Interim Budget on February 1, 2024 but lost 11% since the Union Budget 20204 was presented on July 23, 2024.