Nifty Realty index surges 6% in 1 month; what's driving real estate stocks?

Real-estate stocks in focus: However, in the past six months, Nifty Realty index has underperformed the market by falling 7.4 per cent, as against 2.1 per cent rise in the Nifty 50.

Share price movement of real estate companies today

 

Shares of real estate companies were trading firm, gaining up to 2 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade in an otherwise weak market owing to a positive outlook.

 

Anant Raj, Oberoi Realty, Lodha Developers, DLF, Godrej Properties and Brigade Enterprises were up in the range of 1 per cent to 2 per cent in intra-day deals.

 

At 09:27 AM; Nifty Realty index was up 0.6 per cent, as compared to 0.25 per cent decline in the Nifty 50 index. In the past one month, the realty index has rallied 6 per cent, as against 0.38 per cent gain in the benchmark index.

 

 

However, in the past six months, Nifty Realty index has underperformed the market by falling 7.4 per cent, as against 2.1 per cent rise in the Nifty 50.  FOLLOW LATEST STOCK MARKET UPDATES LIVE

What’s driving the real estate stocks?

 

Analysts at JM Financial Institutional Equities feel that residential demand is expected to sustain at least in the near term; while there could be a minor moderation, the demand-supply scenario is healthy directionally with high absorption levels and comfortable inventory levels.

 

The listed real estate universe continues to adopt a disciplined approach with higher emphasis on monetising existing projects over new supply. Except for NCR, where there was a sequential uptick in launches as supply dried up in the September 2025 quarter (Q2), new launches in all other markets were either flat or down marginally QoQ. Despite the limited launches so far in the year, most key developers remain on track to meet their annual pre-sales guidance, the brokerage firm said in the sector update. It maintains a positive stance on the sector as the demand-supply scenario is healthy directionally with high absorption levels and comfortable inventory levels.

 

At current levels, Godrej Properties (March 2027 target price (TP):  ₹2,600), Sobha (March 2027 TP:  ₹1,650) and Lodha (March 2027 TP: ₹1,480) were the brokerage firm’s preferred picks.

 

Meanwhile, Lodha Developers achieved its best-ever quarterly pre-sales of ₹5,620 crore in December 2025 quarter (Q3FY26), with 25 per cent year-on-year (YoY) growth and 23 per cent quarter-on-quarter (QoQ) growth. Strong momentum in the company’s sustenance sales and significant launch pipeline in Q4 will support achievement of its pre-sales guidance of ₹21,000 crore for the year, Lodha Developers said.  ALSO READ | IRB Infra shares rise 2% on posting 12% increase in Dec toll revenue 

Lodha Developers’ steady pace of project acquisitions enhances long-term visibility, while its disciplined and timely execution ensures that this momentum is effectively translated into sustained performance, according to analysts at Motilal Oswal Financial Services.

 

The company has delivered steady performance across its key parameters, and as it prepares to capitalize on strong growth and consolidation opportunities, the brokerage firm expects this consistent operational performance to continue.    ===============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.