Nomura bets big on realty; Prestige Estates, Lodha, ABREL, Oberoi top picks

Demand for residential real estate has remained stable in the country in the two months into the fourth quarter of the current fiscal year (Q4FY26) even as the broader macroeconomic environment remains uncertain, said brokerage firm Nomura in a round-up report on India's real estate sector. 

It said that housing demand continues to be resilient, especially for top branded developers. Key markets such as Bengaluru, Mumbai, and the NCR saw stable buyer interests. 

The report noted that projects priced unreasonably high for a particular location are not getting traction, as enthusiasm has moderated. However, demand has been resilient for projects that are priced appropriately as buyers are becoming more selective. 

 

The brokerage said that the current quarter is also expected to see several project launches in different price segments, including ultra-luxury, mid-range, and affordable.  READ | IRCTC, Mazagon, DLF among 5 stocks with up to 19% upside potential: Analyst 

According to Nomura, the latest trends indicate that India’s real estate sector is in a mature phase rather than entering a slowdown. Developers, it said, are on track to meet or even beat their sales guidance for the financial year.  

Prestige Estates: Nomura has assigned a 'Buy' rating on Prestige Estates. It said that total projects likely to be launched in 4QFY26F could be worth in excess of ₹75 billion (up to ₹150 billion) vs ₹ 20 billion in 3QFY26. 

Lodha Developers: Nomura has tagged a 'Buy' rating on Lodha Developers. It said that the management has indicated non-launched weekly sales could be over ₹ 3-3.2 billion per week (vs ₹3 billion per week in 3QFY26). The company is launching a residential project in Prabhadevi, Mumbai, near Oberoi 360 West and Beaumonde towers. The company also has launches in Hinjewadi (Pune) and Sewri (Mumbai). 

According to management, the company remains on track to launch all three projects in 4QFY26. 

Aditya Birla Real Estate: Nomura has a 'Buy' rating on Aditya Birla Real Estate. Channel checks indicate good demand for Birla Arika (Phase 2), Gurugram. The management expects strong demand for its Thane project as well. New launches in Q4: In Bengaluru, the company will launch a new phase of Trimaya and Evara. Both the projects already have RERA approvals in place. In Pune, the realty firm will launch a new phase of Punya in the quarter. 

Oberoi Realty: Nomura has a 'Buy' rating on Oberoi Realty. It said that EOI collection for the Sky City tower H (Borivali, Mumbai) began in the last week of February. The project has roughly 783 units, and it expects half of the units to be launched.