Elara Capital Sees Up to 85% Gains in Realty Stocks Despite 66% Decline
Despite a significant decline of up to 66% in realty stocks over the past year, Elara Capital predicts substantial gains of up to 85% in select real estate companies. The brokerage highlights seven top picks for investors looking to capitalize on the expected turnaround.
Real EstateStocksElara CapitalRealty PicksInvestment OpportunitiesReal Estate NewsSep 15, 2025
Godrej Properties
Buy Godrej Properties at Rs 1,995 | Target: Rs 3,700 | Upside: 85%
Godrej Properties is one of the top realty picks for Elara. Improving trends at Navi Mumbai are a key positive, boding well for key upcoming launches by Godrej Properties in FY26. Despite the sectoral downturn, the stock has declined by nearly 27% in 2025.
Sobha Realty
Buy Sobha Realty at Rs 1,545 | Target: Rs 2,500 | Upside: 62%
This multibagger stock with 5-year returns of 540% is another top pick. Amid the sectoral rout, it has managed to remain positive in 2025 with 1% returns, though it is down 10% over a year.
Oberoi Realty
Buy Oberoi Realty at Rs 1,602 | Target: Rs 2,500 | Upside: 56%
Down 9% in one year, Oberoi Realty is also among Elara's top bets for long-term gains. The company's strong fundamentals and strategic positioning make it a compelling investment.
Prestige Estates
Buy Prestige Estates at Rs 1,561 | Target: Rs 2,300 | Upside: 47%
Shares of Prestige Estates are down 13% in a 1-year period but have seen a good rebound in the past six months. Its gains in this period stand at 44%, making it a strong candidate for further growth.
DLF
Buy DLF around Rs 757 | Target: Rs 1,050 | Upside: 38%
The Gurugram-based realtor has slipped 10% over the past one year. However, Elara Capital sees significant potential for recovery and growth, driven by its robust project pipeline and market presence.
Lodha Developers
Accumulate Lodha Developers at Rs 1,182 | Target: Rs 1,400 | Upside: 18%
Lodha Developers are down 7% over the past 12 months. Elara Capital believes that operational updates of high-velocity players such as Lodha Developers will set the trend for Q2, making it a solid choice for investors.
Brigade Enterprises
Accumulate Brigade Enterprises at Rs 932 | Target: Rs 1,200 | Upside: 29%
Shares of Brigade Enterprises are down 28% in the past one year. Despite this, Elara Capital sees strong potential for recovery, driven by its diversified portfolio and strategic projects.
Key Factors Driving the Turnaround
Elara Capital's positive outlook is based on several key factors:
1. Luxury Sales Volume YoY Increase : Broad-based growth in luxury sales volume in Tier I cities.
2. Stable Inventory Overhang : Inventory levels remain stable quarter-over-quarter, indicating a healthy market.
3. Strong Offtake in New Launches : New launches are seeing strong demand, particularly from branded players.
4. Preference for Branded Players : Consumers continue to prefer well-established and branded real estate developers, which bodes well for these companies.
Conclusion
While the real estate sector has faced significant challenges over the past year, Elara Capital's analysis suggests that the tide is turning. Investors looking to capitalize on the expected recovery should consider these top picks, which offer substantial upside potential. However, as with any investment, it is important to conduct thorough research and consider individual risk tolerance and investment goals.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
Frequently Asked Questions
Why have realty stocks declined by up to 66% in the past year?
Realty stocks have declined due to various factors such as economic uncertainty, regulatory changes, and a slowdown in demand. However, Elara Capital sees a potential turnaround based on positive trends in luxury sales, stable inventory, and strong offtake in new launches.
What are the key factors driving the expected recovery in real estate stocks?
Key factors include a broad-based increase in luxury sales volume, stable inventory overhang in Tier I cities, strong offtake in new launches, and a continued preference for branded players.
Which real estate stocks does Elara Capital recommend for investment?
Elara Capital recommends Godrej Properties, Sobha Realty, Oberoi Realty, Prestige Estates, DLF, Lodha Developers, and Brigade Enterprises for investment based on their potential for significant gains.
How much upside potential do these stocks have according to Elara Capital?
Elara Capital sees potential gains of up to 85% in Godrej Properties, 62% in Sobha Realty, 56% in Oberoi Realty, 47% in Prestige Estates, 38% in DLF, 18% in Lodha Developers, and 29% in Brigade Enterprises.
What should investors consider before investing in these real estate stocks?
Investors should conduct thorough research, consider individual risk tolerance, and align the investment with their financial goals. It's also important to stay updated on market trends and company-specific news.
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