Shares of real estate companies were under pressure on Friday, with the S&P BSE Realty index falling nearly 6%. The new variant of the virus has added to concerns about growth and interest rates going forward.

at 11:04 am; S&P BSE Realty, the first loser among sector indices, lost 5.5%, against 2.3% for S&P BSE Sensex. With Friday’s drop, the real estate index plunged 13% from its 52-week record high of 4,464 reached on November 9, 2021.

Among individual stocks, DLF, Phoneix, Oberoi Realty, Indiabulls Real Estate, Prestige Estates Projects fell 6-8%. Godrej Properties, Sunteck Realty, Sobha, Macrotech Developers, Mahindra Lifespace Developers and Brigade Enterprises fell 3-5%.

Scientists in South Africa on Thursday identified a worrying new variant of the coronavirus, the mutations of which mark a “big leap in evolution” that is leading to a spike in new cases, according to a New York Times report. Hours later, Britain banned flights from six southern African countries, citing the variant. CLICK HERE FOR THE FULL REPORT

Despite the correction of more than 10% from its 52-week high, the BSE Realty Index has outperformed the market by surging 57% so far in calendar year 2021. By comparison, the S&P BSE Sensex rose 20%, according to the data. .

“The pandemic has played a catalytic role by accelerating market share gains in the hands of organized real estate players. Banks, equity providers, buyers and supply chains have aligned themselves with stronger developers to further consolidate this change. Economic recovery, strong attrition supported by higher wages, robust stock markets, low interest rates, affordability, the collapse of the Tier 2 developer ecosystem, new launches and the search for a Large property / home ownership are some of the tailwinds fueling this recovery, ”HDFC Securities analysts said in a recent report.

Adding: “While the sector may experience short-term headwinds, the long-term story remains intact. We continue to believe that Tier 1 developers will gain market share, given the growing consumer buying preference for reputable developers in projects under construction. ”

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