Indian Real Estate Market in Strong Upcycle: Premium Launches to Drive Growth
The Indian real estate market continues to experience a strong upcycle, with larger players like DLF and Oberoi Realty reporting robust pre-sales. Smaller developers are also optimistic about growth over the next few years.
Real EstateUpcyclePresalesPremium LaunchesIndian MarketReal Estate NewsJun 27, 2025
So, yes, the inventory backlog has been fading away, and we have seen this trend in data from the first quarter. Anarock data, for instance, has shown a dip in housing sales. However, certain segments, like the affordable category, have been underperforming since the pandemic due to high interest rates. Larger listed developers have moved away from the affordable segment and now cater to upper-middle-income and luxury to premium segments. Despite overall sluggishness in the lower mid-income category, specific launches have seen phenomenal responses. For example, Oberoi’s Goregaon launch and DLF’s NCR launch of Privana North have been very successful. Godrej Properties also reported good sales during the first quarter.
The upcycle in the real estate sector is expected to last for several more years. We are currently in the third to fourth year of this cycle, and larger players are expected to maintain strong growth despite the high base effect. Smaller developers are aiming for 20-30% pre-sales growth over the next two to three years. According to Siyoni, the sector is still in the upcycle, and there are at least two to three more years before a potential plateau or decline.
In terms of stock-specific recommendations, Siyoni suggests a selective approach. In the large-cap space, DLF, Oberoi Realty, and Phoenix Mills are preferred. In the mid-cap space, Arvind SmartSpaces, Max Realty, and Aditya Birla Real Estate are recommended. These companies are expected to perform well, with many high-ticket launches planned for the second half of the fiscal year. These launches are expected to provide further momentum to the sector.
Frequently Asked Questions
What is the current state of the Indian real estate market?
The Indian real estate market is currently in a strong upcycle, with larger players like DLF and Oberoi Realty reporting robust pre-sales. Smaller developers are also optimistic about growth over the next few years.
How long is the current upcycle expected to last?
The current upcycle in the Indian real estate market is expected to last for at least another two to three years before potentially entering a plateau phase.
Which segments of the real estate market are performing well?
Upper-middle-income and luxury to premium segments are performing well, with specific launches seeing phenomenal responses. The affordable segment has been underperforming due to high interest rates.
What are the stock recommendations for the real estate sector?
In the large-cap space, DLF, Oberoi Realty, and Phoenix Mills are recommended. In the mid-cap space, Arvind SmartSpaces, Max Realty, and Aditya Birla Real Estate are preferred.
What factors are driving the growth in the real estate sector?
The growth in the real estate sector is driven by high pre-sales, successful launches of premium projects, and a fading inventory backlog. Smaller developers are also targeting significant pre-sales growth over the next few years.
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