Real Estate Market: Steady Pre-Sales Growth Despite Challenges
The real estate sector has seen robust pre-sales growth in the first half of FY26, driven by strong customer response to existing projects. However, the second half of the year may see a different trend as new launches accelerate and market conditions evolve.
Real EstatePresalesMarket TrendsProperty LaunchesListed DevelopersReal Estate NewsNov 24, 2025
But in the second half of the year, the story may be different, with the pace of new launches set to accelerate as approval processes gradually improve. A recent channel check by Nomura Global Markets Research showed strong demand for projects launched in October or expected to be launched in November. “In particular, projects in Mumbai (Prestige Estates Projects Ltd’s Mira Road Project), Bangalore (Sobha Ltd’s Magnus), Hyderabad (Brigade Enterprises’s Gateway Tower 2), Gurugram (Aditya Birla Real Estate’s Sector 71) are seeing good demand traction,” said the Nomura report dated 9 November.
Pre-sales trajectory for the remainder of FY26 would depend on whether this level of customer interest in new projects sustains in Q4FY26 as well. For now, large listed realtors such as Godrej, Lodha Developers Ltd, DLF, and Prestige Estates have maintained their FY26 pre-sales growth guidance of 18-20%. Widespread expectations are that most of them would meet the target. Increased consolidation in the sector benefited listed and branded developers, especially post the Covid-19 pandemic, giving their pre-sales a boost. There has been a rising preference for established developers who can deliver quality homes on time. That said, the days of superlative pre-sales growth may be behind the sector, given a high base. “With the growing base during the upcycle, we don't expect pre-sales growth of the last three years (at a CAGR of 33%) to continue in the next three years,” said the Antique Stock Broking report on 18 November. CAGR is the compound annual growth rate. Companies such as Brigade, Godrej, and Lodha may deliver 15-20% CAGR over the next three years, it said. On the other hand, Oberoi Realty Ltd and DLF, although they have significant land parcels, are geographically concentrated and may see staggered pre-sales growth.
There are lingering worries of weakening demand for high-end/premium residential properties due to softer sentiment among IT-sector-linked potential buyers. Also, elevated home prices could hurt affordability for customers, adversely impacting developers’ pre-sales. At a broader industry level, pre-sales saw a moderate 11% year-on-year rise in Q2FY26, driven entirely by higher prices, as volumes remained flat at 23.6 crore sq. ft, said Pankaj Kumar, vice president & analyst, fundamental Research at Kotak Securities. Among the top markets, Bengaluru and Hyderabad posted healthy volume gains, while the Mumbai Metropolitan Region and the National Capital Region saw a decline.
Meanwhile, the listed realty companies are actively pursuing land acquisitions to expand their portfolios for future projects. They are also trying to gradually expand into newer geographies. So, business development activities are expected to remain robust in H2FY26. Owing to healthy collections and funds raised earlier, debt levels for many listed developers are currently at a comfortable level. In this calendar year so far, the Nifty Realty index is down around 13% compared to positive returns by Nifty 50. The absorption of new projects and the upcoming launch pipeline will determine the future course of realty stocks.
Frequently Asked Questions
What is the expected pre-sales growth for listed real estate firms in FY26?
Large listed realtors such as Godrej, Lodha Developers, DLF, and Prestige Estates have maintained their FY26 pre-sales growth guidance of 18-20%. Widespread expectations are that most of them would meet the target.
How has the customer response to new real estate projects been in the first half of FY26?
Customer response to new real estate projects has been healthy, with pre-sales for listed real estate firms rising 44% year-on-year in the first half of FY26.
What are the concerns affecting high-end/premium residential properties?
There are concerns about weakening demand for high-end/premium residential properties due to softer sentiment among IT-sector-linked potential buyers and elevated home prices affecting affordability.
What is the current trend in pre-sales for the broader real estate industry?
At a broader industry level, pre-sales saw a moderate 11% year-on-year rise in Q2FY26, driven entirely by higher prices, with volumes remaining flat at 23.6 crore sq. ft.
How are listed real estate companies preparing for future projects?
Listed real estate companies are actively pursuing land acquisitions and expanding into newer geographies to prepare for future projects, ensuring robust business development activities.
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