Real Estate Consolidation Phase: Select Developers Poised for Strong Pre-Sales
India's real estate sector is undergoing a consolidation phase after three years of robust growth, with select developers expected to see strong pre-sales in the coming quarters, according to JM Financial.
Real EstatePresalesConsolidationDevelopersData CentersReal Estate NewsSep 25, 2025
Kumar explained that the first half of the year is typically weak due to non-auspicious days and heavy rains, which have dampened sales. Despite this, the absorption rate at launches has remained healthy, with about 50% of the inventory being sold. He anticipates a stronger momentum in the coming quarters.
On the company front, Kumar pointed out Keystone Realtors, which has been adding large redevelopment projects in Mumbai, and Sobha, which has a robust pipeline for the second half of the year. Sobha is expected to see pre-sales growth of 30-35%. Godrej Properties is also on track to meet its 2025-26 (FY26) pre-sales target of ₹32,500 crore, despite recent stock weakness.
Kumar also mentioned that developers are exploring opportunities in real estate for data centers, describing it as an annuity business with yields starting at 9.5% to 10%. On a leveraged basis, returns could range from 18% to 25%.
In summary, while the real estate sector is consolidating, select developers are well-positioned to capitalize on strong pre-sales and new opportunities in emerging segments like data centers.
Frequently Asked Questions
What is the current state of India's real estate sector?
India's real estate sector is currently in a consolidation phase after experiencing strong growth over the past three years. The sector expanded at over 25% between FY22 and FY25, driven by the luxury segment.
Why has the first half of the year been weak for real estate sales?
The first half of the year is typically weak due to non-auspicious days and heavy rains, which have dampened sales. However, the absorption rate at launches has remained healthy, with about 50% of the inventory being sold.
Which developers are expected to perform well in the coming quarters?
Keystone Realtors, Sobha, and Godrej Properties are expected to perform well. Sobha is anticipated to see pre-sales growth of 30-35%, and Godrej Properties is on track to meet its FY26 pre-sales target of ₹32,500 crore.
What new opportunities are developers exploring in real estate?
Developers are exploring opportunities in real estate for data centers, which are being described as an annuity business with yields starting at 9.5% to 10%. On a leveraged basis, returns could range from 18% to 25%.
What is the expected trend for real estate in the second half of the year?
The second half of the year is expected to see a pick-up in launches and stronger momentum in sales. The absorption rate at launches has been healthy, and there is a positive outlook for the coming quarters.
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