Mumbai, Jan 7 (IANS): Real estate stocks traded on a positive note on Thursday after the Maharashtra government slashed the premium on construction of realty projects by 50 per cent till December 31, 2021.

The reduction under the Development Control and Promotion Regulation 2034 would be applicable on all ongoing and new projects.

Around 12.25 pm, shares of Indiabulls Real Estate were trading on the BSE at Rs 84, higher by Rs 5.55 or 7.07 per cent from its previous close.

Godrej Properties' shares were trading at Rs 1,477.95, higher by Rs 17.20 or 1.18 per cent from its previous close.

Shares of Oberoi Realty were trading 2.15 per cent higher at Rs 599.70.

Sunteck Realty shares on the BSE were at Rs 360.05, higher by Rs 12.25 or 3.52 per cent from its previous close.

The latest move by the Maharashtra government is likely to give a major boost to the pandemic-hit realty sector in state.

Siva Krishnan, Managing Director and India Head, Residential Services, JLL India, said: "This move will help reduce the landed cost for developers, thereby rationalising the cost and reducing the burden on customers. It is expected to further trigger the recovery of the residential real estate market which has seen a good uptick in the last two quarters due to factors like lower interest rates, and pro-active measures from the government like stamp duty reduction."

He noted that the latest moves, coupled with the ongoing measures, will go a long way in enticing both end-users and investors back to the residential market.

"The country's residential sector is already seeing an acceleration in sales, leading to a fast-paced recovery from the impact of the pandemic," Krishnan said.