5 Key Catalysts Driving Real Estate Performance in Q1 FY26
India's real estate sector has shown robust growth in Q1 FY26, driven by strong pre-sales, solid business development, healthy balance sheets, and rising commercial rentals. Here's a detailed look at the top realty companies and their performance.
Real EstatePresalesBusiness DevelopmentCommercial RentalsBalance SheetsReal EstateAug 12, 2025
Nomura believes the overall market remains resilient despite the seasonal slowdown over the past one to one-and-a-half months in the second quarter of FY26. Here is what the brokerage thinks of the top realty companies—Lodha Developers, Godrej Properties, DLF, Oberoi Realty, and Prestige Estates—and their Q1 performance.
Despite an uncertain environment around tariffs and job losses in the IT sector, developers (all, except Oberoi Realty, which does not provide guidance) maintained their FY26E pre-sales guidance. This, according to Nomura, highlights the underlying resilience of the real estate market. According to Lodha Developers, these branded developers continue to be supply-constrained and not demand-constrained.
Lodha Developers, Godrej Properties, and Prestige Estates posted strong business development numbers in the quarter. Lodha achieved over 90 per cent of its full-year BD guidance in just three months, while Prestige’s acquisitions are already 77 per cent of its annual sales target. Oberoi Realty made a notable move by acquiring Juhu Hotel for Rs 9 billion, including a prime land parcel.
Commercial rental income remained a bright spot. DLF’s joint venture DCCDL saw a 15 per cent year-on-year jump in annuity income, while Oberoi Realty’s rentals surged 62 per cent, driven by its Commerz III office space and Sky City Mall. Prestige is aiming for Rs 33 billion in annual rentals by FY28, while Lodha targets Rs 15 billion by FY31.
Developers continue to maintain low debt levels. DLF reported a net cash position, while Oberoi Realty’s net debt-to-equity ratio stood at just 0.01. Godrej Properties, Prestige Estates, and Lodha also maintained manageable leverage, with construction expenses largely funded by collections.
Nomura said recent corrections in real estate stocks have created opportunities for long-term investors. Lodha Developers remains the brokerage’s top pick, with expectations that its strong pipeline will help meet FY26 targets. Nomura is also favoring Oberoi Realty, estimating a 30 per cent CAGR in pre-sales over the next two years.
Frequently Asked Questions
What is the main driver of the real estate sector's performance in Q1 FY26?
The main drivers of the real estate sector's performance in Q1 FY26 are robust pre-sales performance and solid business development trends. Developers have maintained their FY26E pre-sales guidance, indicating market resilience.
Which companies are leading in business development in Q1 FY26?
Lodha Developers, Godrej Properties, and Prestige Estates are leading in business development. Lodha achieved over 90 per cent of its full-year BD guidance, and Prestige’s acquisitions are 77 per cent of its annual sales target.
How are commercial rentals performing in the real estate sector?
Commercial rental income is performing well. DLF’s joint venture DCCDL saw a 15 per cent year-on-year jump in annuity income, while Oberoi Realty’s rentals surged 62 per cent, driven by its Commerz III office space and Sky City Mall.
What is the financial health of the leading real estate companies?
The leading real estate companies are maintaining healthy balance sheets. DLF reported a net cash position, and Oberoi Realty’s net debt-to-equity ratio is just 0.01. Godrej Properties, Prestige Estates, and Lodha also have manageable leverage.
What is Nomura's outlook on real estate stocks?
Nomura is bullish on real estate stocks, particularly Lodha Developers and Oberoi Realty. Recent corrections have created opportunities for long-term investors, and Nomura expects Lodha to meet its FY26 targets with a strong pipeline.
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