India's Real Estate Market Surges 50% in Q2, Nomura Predicts Stronger FY27
Nomura reports a 50% increase in pre-sales in Q2, indicating strong demand despite seasonal slowdowns. The brokerage firm expects a robust FY27 with healthy collections and new project launches.
Real EstatePresalesNomuraFy27India Housing MarketReal EstateNov 18, 2025
Nomura sees “healthy resilience” going forward, supported by strong collections, upcoming launches, and comfortable balance sheets. “The market will start pricing in FY27F growth, post the 3QFY26 earnings, where early signs show good demand traction for projects,” the report stated.
Nomura on Real Estate: Demand Stays Strong Despite Seasonal Slowdown
Nomura noted that cumulative pre-sales for the six companies under its coverage (Godrej Properties, Prestige Estates, Lodha Developers, DLF, Oberoi Realty, and Aditya Birla Real Estate) rose 50% year-on-year, even though Q2 is usually a slow period for residential launches and sales.
Nomura on Real Estate: FY26 Guidance Stays Intact
Most real estate developers maintained their FY26 pre-sales guidance, with the exception of Oberoi Realty and ABREL, which do not provide FY26 guidance. According to Nomura, developers continue to face more supply constraints than demand challenges. Lodha reiterated this point, stating that branded players “are not demand-constrained.”
The report also noted that some developers still need to achieve a significant portion of their full-year targets in the second half, particularly Lodha, Oberoi Realty, and ABREL. The brokerage said all three expect “strong seasonality” in 2HFY26 due to a robust pipeline of new project launches.
Nomura on Real Estate: Realty Majors Step Up BD Activity
Developers continued to add new land parcels and projects during the quarter. Prestige Estates led with Rs 12,000 crore in business development additions. Lodha achieved 100% of its FY26 BD guidance, while Godrej Properties completed 81% of its annual target.
Nomura expects this uptick in business development to support pre-sales growth in FY27.
Nomura on Real Estate: Collections Rise 20% YoY as Execution Improves
Collections for the top eight developers rose 20% year-on-year in Q2FY26. Prestige Estates and Sobha posted the strongest numbers, while Godrej Properties and ABREL reported softer collections but expect improvement in the second half.
Collections stood at 73% of pre-sales during the quarter, which Nomura said signals healthy cash inflows for the sector.
Nomura on Real Estate: Commercial and Retail Rentals Pick Up Pace
Commercial annuity assets posted strong growth during the quarter. DLF’s joint venture DCCDL reported a 15% year-on-year increase in annuity income. Oberoi Realty’s rental income jumped 43%, supported by strong demand for its Commerz III office asset and the newly launched Sky City Mall.
Prestige Estates is targeting exit rentals of Rs 3,300 crore by FY28, while Lodha plans to build a meaningful annuity portfolio, including data-center infrastructure, with a rental target of Rs 1500 crore by FY31.
Frequently Asked Questions
What is the current trend in India's real estate market?
India’s real estate market is showing strong growth, with a 50% increase in pre-sales in Q2, despite being a traditionally slow period.
How do real estate developers view the demand for homes in FY26?
Most real estate developers maintain their FY26 pre-sales guidance, indicating strong demand and resilience in the market.
What are the key factors supporting the real estate market's growth?
Key factors include strong collections, a robust pipeline of new project launches, and comfortable balance sheets of developers.
Which companies are leading in business development additions?
Prestige Estates is leading with Rs 12,000 crore in business development additions, followed by Lodha and Godrej Properties.
What is the outlook for commercial and retail rentals?
Commercial and retail rentals are showing strong growth, with DLF and Oberoi Realty reporting significant increases in rental income.
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