Real Estate Developers Achieve Record Quarterly Pre-Sales of ₹43,200 Crore in Q1 FY26
The first quarter of FY26 saw a significant surge in pre-sales for listed real estate developers, with total pre-sales growing by 45% to ₹43,200 crore. This robust performance was led by companies like Prestige and DLF, and it highlights the ongoing recovery and growth in the Indian real estate sector.
Real EstatePresalesDevelopersQ1 Fy26Market TrendsReal EstateAug 22, 2025
Prestige and DLF were the frontrunners in this growth, with quarterly sales of ₹12,100 crore and ₹11,400 crore, respectively. The broader industry, however, had a more modest start, with sales growth at 9%, supported by a 13% increase in blended realisations and a 4% decline in volumes to 238 million square feet in Q1 FY26.
Despite the overall positive trend, the real estate sector exhibited mixed performance across different cities. All-India residential sales in Q1 FY26 were modest at 238 million square feet, down 4% compared to the previous year. Lower launches of 229 million square feet, a 12% decrease, contributed to this trend. The average realisation rose 13% to ₹9,158 per square foot, leading to a 9% growth in sales value.
The weakness in sales volumes was particularly pronounced in the Mumbai Metropolitan Region (MMR), which saw a 19% drop in sales to 32.4 million square feet, driven by a 51% decline in launches to 24 million square feet. In contrast, the National Capital Region (NCR) continued its strong momentum, with sales growing 43% to 32.6 million square feet, supported by a 41% increase in launches to 36.5 million square feet. Key cities like Gurugram and Greater Noida, as well as Ghaziabad, which benefited from a Prestige launch, saw significant growth. Pune, however, experienced a 22% drop in sales to 23.9 million square feet, with launches declining by 28%.
Inventory levels across India fell 3% to 1.5 billion square feet as of June 2025, equating to 1.5 years of trailing 12-month sales. The average realisation saw a 13% growth to ₹9,158 per square foot in Q1 FY26. Ghaziabad led the way with a 58% YoY increase to ₹10,966 per square foot, followed by 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 Kotak Institutional Equities, 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. This strong performance was driven by Prestige, which saw a 300% increase from a weak base, and DLF, which grew by 78% from a low base. Godrej, however, saw a 18% decline from a strong base. NCR contributed significantly to the pre-sales of the tracked companies. Cumulative collections stood at ₹23,300 crore, supported by new launches and completions, marking the second-best quarter ever, just behind the ₹23,800 crore collected in Q4 FY25.
Looking ahead, the companies have a robust launch pipeline of ₹1.8 lakh crore for the fiscal year, which should support their pre-sales performance for the remainder of the year. The developers are guided to achieve ₹1.4 lakh crore in pre-sales for FY2026, representing a 20% YoY growth. As of now, they have already achieved 31% of their full-year guidance in the seasonally weaker quarter. The strong balance sheets and low leverage of listed developers, bolstered by healthy cash generation and equity raises, will enable them to invest in new land parcels, fostering future growth.
Frequently Asked Questions
What is the significance of the 45% growth in pre-sales for listed developers?
The 45% growth in pre-sales for listed developers in Q1 FY26 is significant as it represents their best-ever quarter and indicates a strong recovery and market share gain in the real estate sector.
Which cities saw the strongest growth in residential sales in Q1 FY26?
NCR, particularly cities like Gurugram and Greater Noida, saw the strongest growth in residential sales in Q1 FY26, with a 43% increase in sales.
How did the inventory levels change in Q1 FY26?
Inventory levels across India fell 3% to 1.5 billion square feet as of June 2025, equating to 1.5 years of trailing 12-month sales.
What is the full-year pre-sales target for the tracked developers in FY2026?
The full-year pre-sales target for the tracked developers in FY2026 is ₹1.4 lakh crore, representing a 20% year-on-year growth.
How is the strong balance sheet of listed developers expected to impact future growth?
The strong balance sheets and low leverage of listed developers, bolstered by healthy cash generation and equity raises, will enable them to invest in new land parcels, fostering future growth.
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