Nifty Realty Index Surges 6% in One Month: What’s Driving Real Estate Stocks?
Shares of real estate companies have been trading firm, gaining up to 2 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade, despite an otherwise weak market. This positive outlook is reflected in the Nifty Realty index, which has seen a notable surge.
At 09:27 AM, the Nifty Realty index was up 0.6 per cent, compared to a 0.25 per cent decline in the Nifty 50 index. In the past one month, the realty index has rallied 6 per cent, as against a 0.38 per cent gain in the benchmark index.
However, in the past six months, the Nifty Realty index has underperformed the market by falling 7.4 per cent, while the Nifty 50 has risen by 2.1 per cent.
What’s driving the real estate stocks?
Analysts at JM Financial Institutional Equities believe that residential demand is expected to sustain at least in the near term. While there could be a minor moderation, the demand-supply scenario is healthy with high absorption levels and comfortable inventory levels.
The listed real estate universe continues to adopt a disciplined approach, with a higher emphasis on monetizing existing projects over new supply. Except for NCR, where there was a sequential uptick in launches due to supply drying up in the September 2025 quarter (Q2), new launches in all other markets were either flat or down marginally quarter-on-quarter. Despite the limited launches so far this year, most key developers remain on track to meet their annual pre-sales guidance.
At current levels, Godrej Properties (March 2027 target price: ₹2,600), Sobha (March 2027 TP: ₹1,650), and Lodha (March 2027 TP: ₹1,480) are the brokerage firm’s preferred picks.
Lodha Developers has achieved its best-ever quarterly pre-sales of ₹5,620 crore in the December 2025 quarter (Q3FY26), with a 25 per cent year-on-year (YoY) growth and 23 per cent quarter-on-quarter (QoQ) growth. The company’s strong momentum in sustenance sales and significant launch pipeline in Q4 will support the achievement of its pre-sales guidance of ₹21,000 crore for the year.
Lodha Developers’ steady pace of project acquisitions enhances long-term visibility, while its disciplined and timely execution ensures that this momentum is effectively translated into sustained performance. The company has delivered steady performance across its key parameters, and as it prepares to capitalize on strong growth and consolidation opportunities, the brokerage firm expects this consistent operational performance to continue.
