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Our Bureau

Mumbai, Nov. 29 With Maharashtra revoking the land law, the shares of real estate stocks rose sharply. Most of the players in this sector welcomed the proposal, as now they will have more land at their disposal to meet the needs of the people in the State.

“This is especially beneficial for those construction companies that already had land at their disposal and can now use that land,” said Mr Pankaj Bhansali, Head-Equity, Religare.

The BSE-Realty index was up 1.54 per cent to end the day at 10223.93. Stock prices of companies such as Godrej Industries, Orbit, Housing Development Finance Corporation, Shree Ram Mills, Housing Development and Infrastructure saw a sharp rise in share prices.

Godrej Industries was up 4.99 per cent to close the day at Rs 268.55, Orbit was up 5.19 per cent at Rs 749.80 while Shree Ram Mills and Housing Development and Infrastructure up by 8.94 per cent and 5.08 per cent respectively.

“This is a very progressive move by the Government, as now you will see a rather spiralling appreciation all over Maharashtra in real estate,” said Mr Ramesh Jogani, Managing Director and CEO, Indiareit.

Now, with the repealing of the Act, a developer can use up to 25,000 hectares and this in turn could also attract foreign builders. Analysts say that this move could particularly help those companies which had land to sell but could not do so because of the restrictions, and also the probable buyers who could not gain much as the property prices were already too high.

“This was a long awaited announcement, especially for certain companies. This though wasn’t a surprise as it was an anticipated move as the prices seem to have been stabilising at higher levels,” said Mr P.R. Dilip, Managing Director, Impetus Wealth Management Ltd.

Does Mumbai have enough land to be impacted by this move? “There isn’t much vacant land left in Mumbai and even if there was, they come under too many regulations to get it free. This move is just one aspect,” said Mr Jogani.

More Stories on : Stocks | Stock Markets | Real Estate & Construction | Maharashtra

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