3 Small-Cap Real Estate Stocks to Watch in 2025
India's real estate market is witnessing steady growth due to various economic and policy factors. Here are three small-cap real estate stocks to add to your watchlist.
Real EstateSmallcap StocksSuraj Estate DevelopersKoltepatil DevelopersHubtownReal Estate MumbaiOct 20, 2025
The RBI’s repo rate reductions and tax cuts in the Union Budget have further bolstered demand for affordable housing and revived investor sentiment in the real estate space. Here are three small-cap stocks that could benefit from a growing real estate market. They can be added to your watchlist.
1 Suraj Estate Developers
First on our list is small-cap real estate stock Suraj Estate Developers. Suraj Estate Developers is a Mumbai-based real estate company known for its dominance in the South-Central Mumbai redevelopment, specialising in premium and luxury residential projects. The company has over 37 years of experience, delivering 42+ completed projects and developing over 1 million square feet of space concentrated in micro-markets such as Dadar, Prabhadevi, and Mahim.
Suraj Estate Developers Financial Snapshot (FY23-25)
Rs m | FY22-23 | FY 23-24 | FY24-25
--- | --- | --- | ---
Net Sales | 3,057 | 4,122 | 5,491
Sales Growth % | 12.1 | 34.8 | 33.2
Net Profit | 321 | 675 | 1,002
ROCE | 36.1 | 30.8 | 16.9
Source: Equitymaster
The company in Q1 FY26, saw total revenues reaching Rs 1,325 million (m), a slight decrease compared to Rs 1,337 m in the same period last year. Net profits dropped to Rs 213 m from Rs 301 m year-on-year. Looking ahead, the company has entered a pivotal execution phase in 2025-26, backed by a strong launch pipeline across both residential and commercial segments. Over Rs 20 billion of gross development value is planned for launch in 2025-26, including a marquee commercial project in Mahim and several value-luxury residential projects in Mahim and Dadar, with projects like ParkView-1, Gudekar House, and Lobo Villa progressing steadily towards launch. The company is optimistic that a few projects previously deferred pending regulatory approvals, along with the Mahim commercial site, will be launched in 2025-26. Suraj Estate has also acquired development rights for a small parcel of land at Shivaji Park, where it plans to develop a premium luxury project. The combination of an asset-light model, past track record, and deep micromarket knowledge will assist in delivering sustainable growth for the company.
2 Kolte-Patil Developers
Next on our list of small-cap real estate stocks is Kolte-Patil Developers. Kolte-Patil Developers is a leading real estate development company with a strong presence primarily in Pune, Mumbai, and Bengaluru. The company has been creating landmarks and has developed and constructed over 64 projects, including residential complexes, commercial complexes, and IT Parks covering a saleable area of 28 million square feet.
Kolte-Patil Developers Financial Snapshot (FY23-25)
Rs m | FY22-23 | FY 23-24 | FY24-25
--- | --- | --- | ---
Net Sales | 14,884 | 13,715 | 17,174
Sales Growth % | 33.2 | -7.9 | 25.2
Net Profit | 1,135 | -675 | 1,093
ROCE | 17.2 | 2.8 | 25.6
Source: Equitymaster
The company reported revenues of Rs 824 m in Q1 FY26, a drop compared to Rs 3,408 m in the same period last year. It reported a loss of Rs 170 m, compared to a net profit of Rs 40 m YoY. Moving forward, growth this year according to the Kolte-Patil management will be supported by the continued sales traction at the flagship Life Republic township. The company will complement the same by new launches and phase-wise expansions across existing projects. The management aims to consolidate its leadership in Pune while accelerating growth momentum in Mumbai Metropolitan Region (MMR) and Bengaluru. The strategic roadmap includes deepening its presence in the established micro-markets and selectively entering new locations within the three core geographies.
3 Hubtown
Hubtown Limited, a prominent name in the Indian real estate sector, has a history spanning over four decades and is one of the top real estate developers in Mumbai. The company has developed real estate projects spanning various verticals such as residential, commercial, retail, and industrial projects. It also has a presence in Gujarat (Ahmedabad, Vadodara, Mehsana, and Surat) and Pune.
Hubtown Financial Snapshot (FY23 to FY25)
Rs m | FY22-23 | FY 23-24 | FY24-25
--- | --- | --- | ---
Net Sales | 3,191 | 2,214 | 4,085
Sales Growth % | 67.7 | -30.6 | 84.5
Net Profit | 263 | -760 | 552
ROCE | 6.6 | 0.00 | 8.0
Source: Equitymaster
The company reported revenues of Rs 1,874 m in Q1 FY26, compared to Rs 1,203 m in the same period last year. It reported a solid growth in net profits to Rs 820 m, compared to a net profit of Rs 61 m YoY. An important aspect of the company’s financial strategy lies in its capability to secure funding from a wide spectrum of Indian and international investors. In 2024, Hubtown successfully garnered over Rs 9.4 billion through a preferential allotment of shares. Additionally, Rare Townships Pvt. Ltd., a subsidiary of the company, obtained approximately Rs 2 billion in funding from the SWAMIH Fund. Furthermore, Oaktree Capital, an established global credit provider, supported the group’s 25 Downtown project, where Hubtown holds a 25% equity stake. Hubtown currently has 7.1 million square feet of ongoing projects under various stages of execution and a substantial land bank of over 23.1 million square feet, much of which is “launch ready.” This should help sustain growth going forward.
Conclusion
India’s real estate sector is experiencing robust growth, driven by rapid urbanisation, rising incomes, government initiatives, and growing investment interest. For companies in the sector, timely execution, past track record, and prudent financial management would be the key going forward. Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions. Happy investing.
Frequently Asked Questions
What is driving the growth in India's real estate market in 2025?
The growth in India's real estate market in 2025 is being driven by rapid urbanisation, rising incomes, government initiatives such as the Pradhan Mantri Awas Yojana (PMAY), and metro expansion across cities.
What is Suraj Estate Developers known for?
Suraj Estate Developers is known for its dominance in the South-Central Mumbai redevelopment, specialising in premium and luxury residential projects.
What are the key financial highlights of Kolte-Patil Developers?
Kolte-Patil Developers reported revenues of Rs 824 m in Q1 FY26, a drop compared to Rs 3,408 m in the same period last year. It reported a loss of Rs 170 m, compared to a net profit of Rs 40 m YoY.
What is Hubtown's strategic roadmap?
Hubtown's strategic roadmap includes deepening its presence in established micro-markets and selectively entering new locations within the three core geographies of Mumbai, Gujarat, and Pune.
What are the key factors investors should consider before investing in real estate stocks?
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Related News Articles
Large Cap Mutual Funds: Understanding Performance and Strategy
Large-cap mutual funds are considered more secure, but Mirae Asset Large Cap has underperformed due to its disciplined investment strategy, focusing on strong growth sectors like infrastructure and real estate.
Market Rally Analysis: Manish Chokhani's Insights on India's Growth Potential
Manish Chokhani, Director of Enam Securities, shares his views on the current market rally and potential red flags at the India Today Conclave 2024.
MahaRERA Orders Tata Housing to Refund Buyer After Deducting 2% of Total Cost
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has directed Tata Housing Development Company Ltd to refund the money paid by a homebuyer after deducting 2% of the total consideration. This decision comes after the builder failed to execute th
Understanding Property Registration and Charges in Mumbai
In Mumbai, the real estate market has seen significant growth, particularly during the festive season. The city's property registration process and associated charges, including stamp duty, play a crucial role in this trend. This guide provides a detailed
551 Candidates File Nominations for 21 Assembly Seats in Pune District
A total of 551 candidates have submitted their nominations for the 21 Assembly seats in Pune district. The highest number of candidates is from the Pimpri constituency, with 39 nominations, while the Junnar constituency has the lowest with 17 nominations.
AP CM N Chandrababu Naidu Pledges Full Support to Real Estate Sector
Andhra Pradesh Chief Minister N Chandrababu Naidu has assured full support to the real estate sector, predicting significant growth in the coming years. He emphasized the importance of proper permissions and sustainable development.