Nomura Bullish on Indian Real Estate: Prestige Estates, Lodha, Aditya Birla, and Oberoi Top Picks
Nomura, a prominent brokerage firm, has released a comprehensive report on India's real estate sector, highlighting stable demand for residential properties despite an uncertain macroeconomic environment. The report emphasizes that the sector is in a mature phase rather than heading towards a slowdown. This positive outlook is particularly encouraging for top-tier developers who are well-positioned to meet or exceed their sales targets for the financial year.
Key markets such as Bengaluru, Mumbai, and the National Capital Region (NCR) have witnessed steady buyer interest. According to Nomura, projects that are priced reasonably for their locations are attracting significant attention, while those with unreasonably high prices are struggling to gain traction. Buyers are becoming more selective, focusing on value and quality.
Nomura has assigned a 'Buy' rating to Prestige Estates, one of the leading real estate developers in India. The firm expects Prestige Estates to launch projects worth over ₹75 billion in the fourth quarter of the current fiscal year (Q4FY26), a significant increase from the ₹20 billion launched in the previous quarter. This robust pipeline of projects is expected to bolster the company's performance and market position.
Lodha Developers, another major player in the Indian real estate market, has also received a 'Buy' rating from Nomura. The company's management has indicated that non-launched weekly sales could reach ₹3-3.2 billion, up from ₹3 billion in the third quarter of FY26. Lodha is set to launch several new projects, including a high-profile residential project in Prabhadevi, Mumbai, near Oberoi 360 West and Beaumonde towers. Additional launches are planned in Hinjewadi (Pune) and Sewri (Mumbai). The company remains committed to launching all three projects in Q4FY26.
Aditya Birla Real Estate, part of the Aditya Birla Group, has also been given a 'Buy' rating by Nomura. Channel checks suggest strong demand for Phase 2 of Birla Arika in Gurugram, and the management is optimistic about the performance of its Thane project. In Q4, the company will launch new phases of Trimaya and Evara in Bengaluru, both of which have already secured Real Estate (Regulation and Development) Act (RERA) approvals. In Pune, a new phase of Punya is scheduled for launch in the quarter.
Oberoi Realty, a well-established name in the real estate sector, has also received a 'Buy' rating from Nomura. The company has begun the Expression of Interest (EOI) collection for the Sky City tower H in Borivali, Mumbai. The project, which comprises approximately 783 units, is expected to launch half of its units in the coming months. This strategic move aligns with Oberoi Realty's commitment to delivering high-quality residential projects in prime locations.
In conclusion, Nomura's report provides a bullish outlook for the Indian real estate sector, with a focus on top-tier developers. The stable demand for residential properties, coupled with a mature market phase, bodes well for companies like Prestige Estates, Lodha Developers, Aditya Birla Real Estate, and Oberoi Realty. These developers are well-positioned to capitalize on the current market dynamics and deliver strong performance in the coming quarters.
