India’s real estate sector is experiencing significant growth, with home sales reaching an all-time high of Rs 3.47 lakh crore (approximately $42 billion) in FY23, marking a 48% increase year-on-year. The sector is projected to expand to $5.8 trillion by 2047, contributing 15.5% to GDP.
The shares of the realty stocks have seen a significant downfall after the Maharashtra state government raised the state ready reckoner rate by an average of 3.9%, marking the first hike in two years. Urban areas under Municipal corporations saw a higher increase of 5.95%, reflecting adjustments to property valuation rates for better alignment with market trends.
The ready reckoner rate is a government-set value that determines the minimum price at which a property can be registered for tax purposes in India. It helps assess stamp duty, registration charges, and property value, ensuring transparency in real estate transactions.
Furthermore, a rise in the ready reckoner rate leads to higher stamp duty and property prices, negatively impacting real estate companies. Additionally, the Bengaluru Municipal body will collect waste management fees based on the built-up area of residential properties, further adding to the financial burden for property owners.
Additionally, the reports indicated a fee structure: Rs 10 per month for areas up to 600 sq. feet, Rs 50 per month for areas between 600 to 1,000 sq. feet, and Rs 400 per month for plots exceeding 4,000 sq. feet, based on property size.
Here are the real estate stocks fell up to 5% after the Maharashtra state government raised the state ready reckoner rate:
1. Oberoi Realty Ltd
Oberoi Realty Limited is an India-based company that is engaged in the business of real estate development. The Company develops residential, commercial, retail, and social infrastructure projects. The Company operates through two segments: Real Estate and Hospitality. With a market capitalization of Rs 57,140.09 crore, the shares were trading at Rs 1574.25 per share, decreasing around 5 percent as compared to the previous closing price.
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2. Godrej Properties Ltd
Godrej Properties Limited is an India-based company that is engaged primarily in the business of real estate construction, development, and other related activities. The Company operates through the development of the real estate property segment. It operates through the Godrej brand. With a market capitalization of Rs 61,442 crore, the shares were trading at Rs 2,040 per share, decreasing around 4 percent as compared to the previous closing price.
3. Macrotech Developers Ltd
Macrotech Developers Limited develops real estate properties in India and the United Kingdom. The company’s portfolio includes housing developments, premium and luxury housing projects, and industrial and logistics park divisions. With a market capitalization of Rs 1.15 lakh crore, the shares were trading at Rs 1,155.85 per share, decreasing around 4 percent as compared to the previous closing price.
4. Phoenix Mills Ltd
The Phoenix Mills Limited is an India-based real estate development company. The Company is engaged in the development and leasing of commercial and retail space. The Company operates through two segments: Property and related services and Hospitality. With a market capitalization of Rs 57,352.11 crore, the shares were trading at Rs 1,604.15 per share, decreasing around 3 percent as compared to the previous closing price.
Written by: Abhishek singh
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