Nifty Realty index at 7-year high; up 7% in three days
At 02:53 PM; Nifty Realty index, the largest gainer among sectoral indices, up 2% at 320, as compared to 0.17% rise in Nifty 50 index. In past three trading sessions, the realty index surged 7% against 1.8% rise in the benchmark index. The index is trading at its highest level since April 2011.
The Government on Thursday approved the enhancement of the carpet area of houses for the middle-income group (MIG) category under the Pradhan Mantri Awas Yojana- Urban (PMAY-U).
On carpet area basis, for the MIG 1 category, the area has been increased from 90 sq. m. up-to 120 sq. m. and for the MIG 2 category, it has been increased from 120 sq. m. to 150 sq. m. As per the government, the increase in area will offer buyers greater choice of ‘developer’ projects and also help the sale of ready build flats in the affordable housing segment.
Fitch Ratings expects improving macroeconomic conditions and better consumer sentiment in some south and south-east Asian markets to increase business activity and lead to more robust demand for property.
The rating agency expect India’s consumer spending to expand at a faster pace of 9.1% in FY18-19 (FY17-18: 8%).
“We expect the Core Funds from Operations (CFFO) of the rated Indian developers to continue to improve in 2018 on higher domestic presales in India and the completion of more of their existing projects,” Fitch Ratings said in report.