Realty Stocks Experience Decline Due to Profit Booking, Godrej Properties Drops Over 4%
The real estate sector saw a decline in stock prices for the third consecutive day on September 24, with Godrej Properties and Oberoi Realty leading the losses on the Nifty Realty Index.
Real EstateNifty Realty IndexProfit BookingGodrej PropertiesOberoi RealtyReal Estate PuneSep 24, 2025
This decline comes after a strong performance in September, where realty stocks rose for six out of seven sessions, driven by rate cuts by the Federal Reserve and GST reforms. On September 24, at 2:55 pm, Godrej Properties was down by 4.12 per cent, and Oberoi Realty fell by 2.76 per cent.
In the context of profit booking in real estate stocks, Nuvama Institutional Equities noted that the sector should prepare for volatility due to several challenges, including a lack of middle-income housing and a decline in housing affordability, as well as slow volume growth. According to their report, 'We believe volatility shall persist, and reckon stocks shall continue to be range-bound with downside protected by falling mortgage rates even as the upside is capped by valuation/volume growth concerns.'
The brokerage firm also highlighted that sales volumes dropped between June 2024 and May 2025. Rising home prices have reduced affordability, with premium and luxury segments dominating sales, leading to a narrow housing cycle. They expect price increases to slow down, which could reduce investor-driven demand.
The report further noted that the National Capital Region (NCR) and Pune are the strongest markets, with inventory levels of just 10 and 13 months, respectively. Other cities have higher inventory levels, ranging from 17 to 21 months, except for Hyderabad, which has 26 months of inventory. Nuvama anticipates that real estate stocks will continue trading within a limited range, with volatility persisting. Falling mortgage rates might soften the downward pressure, but concerns around valuations and volume growth will likely restrict upward movement.
In a separate note last week, Nuvama suggested that the market consistency seen from FY21 to FY24 may no longer continue. The brokerage believes that Bengaluru and Chennai’s housing markets still have room for growth, while Hyderabad may have already peaked. Regarding the Mumbai Metropolitan Region (MMR), the report describes it as being in a mid-cycle phase. Pune, meanwhile, appears to be experiencing 'growth fatigue,' while Gurugram is dealing with challenges related to housing affordability.
Frequently Asked Questions
Why are real estate stocks declining?
Realty stocks are declining due to profit booking, which has continued for the third consecutive day. This comes after a strong performance in September driven by rate cuts and GST reforms.
Which companies are the top losers on the Nifty Realty Index?
Godrej Properties and Oberoi Realty are the top losers on the Nifty Realty Index, with Godrej Properties down by 4.12 per cent and Oberoi Realty down by 2.76 per cent.
What challenges is the real estate sector facing?
The real estate sector is facing challenges such as a lack of middle-income housing, a decline in housing affordability, and slow volume growth.
Which cities have the strongest real estate markets?
The National Capital Region (NCR) and Pune have the strongest real estate markets, with inventory levels of just 10 and 13 months, respectively.
What does Nuvama Institutional Equities predict for the future of real estate stocks?
Nuvama anticipates that real estate stocks will continue trading within a limited range, with volatility persisting. Falling mortgage rates might soften downward pressure, but concerns around valuations and volume growth will likely restrict upward movement.
Related News Articles
Luxury Redefined: Ceratec Group Unveils Presidential Towers in Ravet, Pune
Discover the epitome of luxury living with Ceratec Group's latest project, Presidential Towers, offering 2 and 3 BHK homes in the heart of Ravet, Pune.
Rexas Finance (RXS) Price Forecast: Will It Be a Top Performer in 2025?
Rexas Finance (RXS) is making waves in the financial sector with its innovative approach to asset management. From real estate to art and goods, RXS offers a user-friendly interface for seamless asset trading and management. This article explores the pote
Government Hikes: Ordinary Citizens Bear the Brunt in Karnataka
With a series of tax and price hikes, the Karnataka government is placing a significant financial burden on ordinary citizens. From fuel and liquor to milk and water, the costs are rising, while the government contemplates more increases in property tax,
Port Sector Development: Key Focus in My Third Term, Vadhavan Port Underway
In a significant push towards infrastructure development, the port sector has emerged as a key focus area in my third term. The work on the Vadhavan port has already begun, marking a crucial milestone in this initiative.
Women Lead the Charge in India's Real Estate Market
Women investors are increasingly making their mark in both residential and commercial real estate in India, shattering traditional gender barriers and driving market growth.
Housing Loans Reach ₹33.53 Trillion in Q2FY25: NHB
The National Housing Bank (NHB) reports that housing loans outstanding have reached ₹33.53 trillion in the second quarter of FY25, signaling a promising outlook for the housing sector.