Real Estate Developers Achieve Best-Ever Quarter with 45% Pre-Sales Growth
Listed real estate developers reported their best-ever quarterly pre-sales, totaling ₹43,200 crore, marking a 45% growth. This strong performance is driven by robust sales in key cities and a strategic focus on new launches.
Real EstatePresalesMarket ShareDevelopersGrowthReal Estate NewsAug 22, 2025
Prestige and DLF led the growth momentum with quarterly sales of ₹12,100 crore and ₹11,400 crore, respectively. The industry started the fiscal year with a modest 9% growth in sales, driven by a 13% increase in blended realizations and a 4% decline in volumes at 238 million square feet in Q1 FY26. Here are the key real estate trends observed in Q1 FY26.
Mixed real estate trends were observed across cities. All-India residential sales in 1QFY26 were modest at 238 million square feet (-4%), with lower launches of 229 million square feet (-12%). The average realization rose 13% to ₹9,158 per square foot, leading to sales value growing 9%. The weakness in sales volumes was primarily led by MMR, which saw a 19% drop in sales at 32.4 million square feet, driven by a 51% drop in launches at 24 million square feet. NCR, however, continued its strong momentum, with sales of 32.6 million square feet, a 43% growth, on the back of 41% growth in launches at 36.5 million square feet. Key cities like Gurugram and Greater Noida saw significant growth, while Ghaziabad benefited from the Prestige launch. Pune, on the other hand, was weak, with sales dropping 22% at 23.9 million square feet due to a 28% decline in launches.
Inventory levels across India fell 3% to 1.5 billion square feet as of June 2025, equivalent to 1.5 years of trailing 12-month sales. The average realization saw a 13% growth to ₹9,158 per square foot in Q1 FY26, led by Ghaziabad at ₹10,966 per square foot (up 58% year-on-year, due to the Prestige launch), and Greater Noida at ₹10,204 per square foot, Gurugram at ₹20,990 per square foot, Chennai at ₹8,247 per square foot, Bengaluru at ₹9,975 per square foot, and Mumbai at ₹25,196 per square foot.
The developers tracked by the brokerage, including Oberoi, Suntech, Godrej, Brigade, Sobha, Prestige, DLF, Lodha, and Signature, reported their best-ever quarterly pre-sales of ₹43,200 crore, a 45% growth, with all-India market share rising to 20%. The strong growth was led by Prestige (+300% off a weak base) and DLF (+78% off a low base), while Godrej saw a decline of 18% on a strong base. NCR contributed significantly to the coverage players' pre-sales. The cumulative collections stood at ₹23,300 crore, supported by new launches and completions—the second-best quarter ever, after ₹23,800 crore collections in Q4 FY25.
Having closed FY2025 with total pre-sales of ₹1.17 lakh crore, up 19%, the companies tracked by Kotak Institutional Securities guided for ₹1.4 lakh crore (~20% year-on-year) of aggregate pre-sales in FY2026E, and have already achieved 31% of the full-year guidance in the seasonally weaker quarter. The full-year launch pipeline of ₹1.8 lakh crore across players should support the pre-sales performance for the rest of the year. Leverage for the listed developers remains low, aided by healthy cash generation as well as equity raises. The strong balance sheets will allow companies to invest in new land parcels, aiding future growth.
Frequently Asked Questions
What was the total pre-sales growth for listed real estate developers in Q1 FY26?
Listed real estate developers reported a 45% growth in pre-sales, reaching a total of ₹43,200 crore in Q1 FY26.
Which cities saw the strongest growth in residential sales in Q1 FY26?
NCR, particularly Gurugram and Greater Noida, saw the strongest growth in residential sales, with a 43% increase in sales and a 41% increase in launches.
How did the inventory levels change across India in Q1 FY26?
Inventory levels across India fell by 3% to 1.5 billion square feet as of June 2025, equivalent to 1.5 years of trailing 12-month sales.
What was the average realization per square foot in Q1 FY26?
The average realization per square foot in Q1 FY26 rose 13% to ₹9,158, with Ghaziabad leading at ₹10,966 per square foot.
What is the expected pre-sales target for FY2026E for the tracked real estate companies?
The companies tracked by Kotak Institutional Securities have guided for ₹1.4 lakh crore (~20% year-on-year) of aggregate pre-sales in FY2026E.
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