Realty Shares Rally on Hopes of Tax Sops in Budget

Shares in real estate companies rallied on Friday on hopes that the Union Budget which will be announced tomorrow may include some tax sops for home buyers.

DLF gained nearly 4 per cent to Rs 156.55, Oberoi Realty surged as much as 6 per cent, while Unitech jumped over 18 per cent.

Angel Broking in a note to clients said tax exemption limit on home loan principal repayment could be raised from Rs 1.5 lakh to Rs 3 lakh, which will improve affordability of properties and induce home buyers, thereby benefiting residential housing segment.

Some analysts also expect tax exemptions on home loan interest payment to go up. Domestic rating agency Care Rating said there could be an increase in the deduction limit on account of interest on home loan for self-occupied house property from Rs 2 lakh to Rs 3 lakh.