Shares of realty firms drop as govt mulls ban

Share prices of Bengaluru-based property developers tanked up to 5.35% on Bombay Stock Exchange (BSE) on Friday, following the Karnataka government’s announcement of proposed 5-year ban on construction of new apartments in Bengaluru

The share price of Sobha Limited dropped 1.81% to Rs 535.40 on Friday. Sobha’s share price opened at Rs 526.50, hitting a high of Rs 547 and a low of Rs 510.35. Prestige Estates Projects Limited witnessed 3.67% drop in share price to close at Rs 268.10 per share on BSE.

The share price opened at Rs 272 hitting a high of Rs 276.05 and a low of Rs 266.20. It had closed at Rs 278.30 on Thursday. Another prominent builder Brigade Enterprises Limited, on the other hand, witnessed a fall of Rs 7.50 or 2.82 percentage points, with its share price closing at Rs 258 on Friday.

It opened at Rs 258, hitting a high of Rs 263.60 and a low of Rs 247. The company’s shares had closed at Rs 265.50 on Thursday.

Puravankara Limited’s share price closed at Rs 69.90, showing a decline of 5.35%. Its share price opened on Friday at a high of Rs 71.35, hitting a low of Rs 69.60. It had closed at Rs 73.85 the day before.

Commenting on the government’s proposal, an analyst tracking real estate sector said, “The proposal is unlikely to come through, as the government also depends on revenues from allied sectors, so there’s a low chance that they will kill it.”