New Delhi: Real estate shares created a lot of buzz on Tuesday after the Karnataka Government slashed stamp duty by 2 per cent on affordable flats.
The state Assembly passed an amendment to the Stamp Act, 1957, slashing the stamp duty payable on flats priced Rs 35-45 lakh to 3 per cent.
Following the development, shares of Bengaluru-based Brigade Enterprises soared 9 per cent to Rs 401.15. It was followed by another city-based peer, Prestige Estates, which zoomed 6 per cent to Rs 419.50.
However, the 2 per cent duty reduction is applicable only on the primary sales or first-time registration.
Indiabulls Real Estate and Godrej Properties advanced 5 per cent each to Rs 133.50 and Rs 1,724.25, respectively, on Tuesday.
Sunteck Realty, DLF, Phoenix Mills, Oberoi Realty, Sobha and Hemisphere Properties added 1-4 per cent each. All the constituents of the Nifty Realty Index traded in the green.
State Revenue Minister R Ashoka said lakhs of flats in Bengaluru and in other cities have remained unsold due to the distress caused by the Covid-19 pandemic.