Shares of major real estate developers saw gains in early trade on August 18, with Godrej Properties up 2.23% at ₹1,979.90, Oberoi Realty adding 1.51% at ₹1,643.70, DLF climbing 2.30% at ₹768.90, and Prestige Estates rising 1.91% at ₹1,631.50. The rally comes amid renewed optimism over possible GST rationalisation, which could lower input costs for housing and construction companies.
The government’s proposal to simplify the Goods and Services Tax (GST) structure by scrapping the 12% and 28% slabs and moving to a two-rate system of 5% and 18% is set to put several sectoral stocks in focus when markets reopen tomorrow. While these changes remain at the proposal stage, Prime Minister Narendra Modi has assured that a “Diwali gift” in the form of GST rationalisation is on the way.
For the real estate sector, such reforms could reduce the overall cost of construction materials, thereby improving margins for developers and making housing more affordable for end-buyers. Companies like Godrej Properties, Oberoi Realty, DLF, and Prestige Estates stand to benefit from stronger demand and improved project viability, particularly ahead of the festive season when housing sales traditionally pick up momentum.