Shares of real estate companies on Tuesday jumped up to 6 per cent after Finance Minister Nirmala Sitharaman announced allocation of whopping Rs 48,000 crore for completion of 80 lakh houses under the Pradhan Mantri Awas Yojana (PMAY), both rural and urban, during the next fiscal year.
Oberoi Realty jumped 5.98 per cent, DLF gained 3.71 per cent, Sobha Limited
went higher by 3.11 per cent, Indiabulls Real Estate 2.88 per cent, Sunteck Realty 2.52 per cent and Macrotech Developers Ltd 2.47 per cent on BSE.
The realty index was trading nearly 2 per cent higher.
In her budget speech, the minister said: "In 2022-23, 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban. Rs 48,000 crore is allocated for this purpose."
The Centre would work with states for reduction of time required for all the land and construction related approvals, for promoting affordable housing for middle-class and Economically Weaker Sections (EWS) in urban areas, she said.
"We shall also work with the financial sector regulators to expand access to capital along with reduction in cost of intermediation," the minister said.
"The Government has reiterated its commitment towards housing for all by allocating Rs 48,000 crore towards this scheme, around the same as last year," according to Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Baijal added that the government could have given further boost to the housing sector given the strong multiplier effect it has on the economy.