Realty Stocks See Potential for 85% Gains Despite 66% Decline: Elara's Top Picks

Despite a significant decline of up to 66% in the past year, brokerage Elara Capital sees a promising turnaround for certain realty stocks. Here are the top picks with potential gains of up to 85%.

Real EstateStock MarketElara CapitalRealty StocksInvestmentReal EstateSep 15, 2025

Realty Stocks See Potential for 85% Gains Despite 66% Decline: Elara's Top Picks

Real Estate:Realty stocks have faced a tough year, with Nifty Realty declining 14% and individual stocks falling as much as 66%. However, brokerage Elara Capital has identified a few realty names that are poised for substantial gains, with potential returns of up to 85%.

Elara Capital bases its optimistic outlook on several key factors. One is the broad-based year-over-year increase in luxury sales volumes, while the inventory overhang remains stable quarter-over-quarter in Tier I cities. Additionally, the strong offtake in new launches and the continued preference for branded players are positive indicators for the sector.

Buy Godrej Properties at Rs 1,995 | Target: Rs 3,700 | Upside: 85%

Godrej Properties is one of Elara's top picks. The company is seeing improving trends in Navi Mumbai, which bodes well for key upcoming launches in FY26. Despite a 27% decline in 2025, Godrej Properties remains a strong contender for long-term gains.

Buy Sobha Realty at Rs 1,545 | Target: Rs 2,500 | Upside: 62%

Sobha Realty, a multibagger stock with 5-year returns of 540%, is another top recommendation. Even amid the sectoral rout, the stock has managed to remain positive in 2025, with a 1% return, though it has declined 10% over a year.

Buy Oberoi Realty at Rs 1,602 | Target: Rs 2,500 | Upside: 56%

Oberoi Realty, down 9% in one year, is also among Elara's top bets for long-term gains. The company's strong presence in key markets and consistent performance make it a solid choice for investors.

Buy Prestige Estates at Rs 1,561 | Target: Rs 2,300 | Upside: 47%

Prestige Estates, despite a 13% decline over the past year, has shown a good rebound in the past six months, gaining 44%. Elara believes the company's strong fundamentals and market position will continue to drive growth.

Buy DLF around Rs 757 | Target: Rs 1,050 | Upside: 38%

DLF, the Gurugram-based realtor, has slipped 10% over the past year. However, Elara sees significant potential in DLF's diverse portfolio and strategic projects, making it a compelling buy.

Accumulate Lodha Developers at Rs 1,182 | Target: Rs 1,400 | Upside: 18%

Lodha Developers, down 7% over the past 12 months, is another high-velocity player that Elara believes will set the trend for Q2. The company's operational updates and strong market presence make it a good long-term investment.

Accumulate Brigade Enterprises at Rs 932 | Target: Rs 1,200 | Upside: 29%

Brigade Enterprises, with a 28% decline in the past year, is a company that Elara sees as having strong growth potential. The company's diversified portfolio and strategic projects are expected to drive significant gains in the coming months.

Elara Capital's recommendations are based on a thorough analysis of market trends, company performance, and sectoral dynamics. Investors looking to capitalize on the real estate sector's potential should consider these top picks for their portfolios.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

Frequently Asked Questions

What factors are driving the potential gains in realty stocks?

Key factors include a broad-based increase in luxury sales volumes, stable inventory overhang in Tier I cities, strong offtake in new launches, and a continued preference for branded players.

Which realty stock has the highest potential upside according to Elara?

Godrej Properties has the highest potential upside, with a target of Rs 3,700 and an upside of 85%.

How much have realty stocks declined over the past year?

Realty stocks have declined up to 66% over the past year, with Nifty Realty down 14%.

What is the current price and target price for Prestige Estates?

The current price for Prestige Estates is Rs 1,561, with a target price of Rs 2,300, offering an upside of 47%.

Why does Elara recommend accumulating Brigade Enterprises?

Elara recommends accumulating Brigade Enterprises due to its strong growth potential, diversified portfolio, and strategic projects, despite a 28% decline in the past year.