Nifty Realty Index Struggles: Worst Start in a Decade for Real Estate Stocks
The Nifty Realty index has had one of its worst starts to the year in the last decade, with a decline of 8.2% in January so far, as of Tuesday, January 20. This comes amid growing concerns about the sustainability of the real estate upcycle, which is facing demand issues and may be nearing its end.
Only three times in the past 10 years has the Nifty Realty index managed to deliver positive returns in January, specifically in 2024, 2020, and 2017. This current downward trend is also the tenth straight day of losses for the index, which has now corrected by 23% from its recent 52-week high.
Three major constituents of the Real Estate Index—Lodha Developers, Godrej Properties, and Brigade Enterprises—are currently trading at 52-week lows. Additionally, Signatureglobal, a recent listing, has hit a new post-listing low.
The quarterly trends presented by real estate companies for the December quarter offer a mixed picture. Sobha reported bookings of ₹2,115 crore, marking a 12% growth year-over-year (YoY). Lodha Developers saw a significant increase in bookings to ₹5,620 crore, a 25% YoY growth. Keystone, however, reported a slight decline in bookings to ₹837 crore, down 3% YoY. Puravankara recorded ₹1,414 crore in bookings, a 17% YoY growth. Signatureglobal, despite its recent listing, saw a 27% decline in bookings to ₹2,020 crore. Prestige Estates reported bookings of ₹4,183 crore, a substantial 39% YoY growth. Oberoi Realty’s bookings were ₹836 crore, a 6% YoY increase.
Signatureglobal, in its recent report, stated that the demand environment has turned soft and that it will not be able to meet its full-year guidance. Prestige Estates, while noting strong demand, warned that overpriced products could lead to demand concerns. Oberoi Realty, despite a near 8% decline in its share price after its results, remains optimistic about the year ahead, citing a strong development pipeline and prudent capital management as key factors keeping them bullish.
Keystone Realtors, in a recent conversation with CNBC-TV18, mentioned that they have not observed a slowdown in any of the residential real estate segments.
On Tuesday, the Nifty Realty index was down over 4%, with Signatureglobal declining by 21% so far in 2026. Other significant players like Godrej Properties, Prestige Estates, Brigade Enterprises, DLF, and Oberoi Realty have seen their shares decline by 9% to 14% in the current year. All constituents of the Nifty Realty index are trading with losses in 2026, reflecting the challenging market conditions in the real estate sector.
Despite these challenges, some real estate companies remain optimistic about the future, emphasizing the importance of strategic planning and market adaptability in navigating the current downturn.
