Realty Stocks Soar Amid Rate Cut Hopes: Sobha, Prestige, and Oberoi Lead Gains
The Nifty Realty index surged over 1% and neared the 1,000 level, driven by strong gains in Sobha, Brigade Enterprises, Prestige Estates, and Oberoi Realty. Despite the broader market trading in the red, real estate stocks saw a robust performance, fueled by expectations of an upcoming rate cut by the RBI.
Real EstateStock MarketNifty RealtyRate CutRbiReal EstateJun 03, 2025
Sobha, Brigade Enterprises, Prestige Estates Project, and Oberoi Realty were among the top gainers, even as the broader market traded in the red territory. The BSE Sensex was down by nearly 500 points or 0.61%, trading around the 80,875 level mark.
At 02:50 pm, the Nifty Realty index was trading around 984.40 level, up by 1.35%. The benchmark Nifty50 index, on the other hand, was trading at 24,564 level, down by over 0.6% or 151 points. Sobha Ltd. was the top-performing stock in the Realty index, trading at ₹1,531.60 price level, marking a surge of 5.42%.
While the Nifty Realty index saw most constituents in the green, DLF, Godrej Properties, Embassy Developments, and Hemisphere Properties India bucked the trend. With rate cut hopes building, Dalal Street investors are closely watching the upcoming RBI MPC meeting. The central bank's decision is scheduled for June 6, 2025 (Friday). Real estate is one of the most rate-sensitive sectors alongside banking. In the last 5 trading sessions, the Nifty realty index has surged over 3.77% or 35 points.
"Since the MPC is expected to cut policy rate by 25 bp in the policy meet on 8th, rate sensitives are likely to be favoured in the coming days," said VK Vijayakumar, chief investment strategist, Geojit Investments Limited.
Meanwhile, real estate players are also hoping for an interest rate cut, as it could strengthen borrowing capacity, eventually improving affordability for homebuyers. With construction costs on the rise affecting capital flows, lower interest rates would ease financing pressures for developers. A rate cut would strengthen market confidence, infuse much-needed liquidity, and also act as a strong signal of policy support for the real estate sector and the broader economy, thereby encouraging investments. With sustained demand and softening home loan interest rates, the sector’s growth momentum will definitely accelerate further, firmly establishing the real estate sector as a key driver of the nation's economic development, according to Ramani Sastri, chairman and MD of Sterling Developers.
Frequently Asked Questions
What is the current level of the Nifty Realty index?
As of the latest trading session, the Nifty Realty index was trading around 984.40 level, up by 1.35%.
Which real estate stocks were the top gainers?
Sobha, Brigade Enterprises, Prestige Estates Project, and Oberoi Realty were among the top gainers in the real estate sector.
How did the broader market perform during this session?
The broader market traded in the red, with the BSE Sensex down by nearly 500 points or 0.61%, trading around the 80,875 level mark.
What is the expected outcome of the upcoming RBI MPC meeting?
The RBI MPC meeting is scheduled for June 6, 2025, and market analysts expect a policy rate cut of 25 basis points, which could benefit rate-sensitive sectors like real estate.
How would a rate cut impact the real estate sector?
A rate cut would ease financing pressures for developers, improve affordability for homebuyers, and boost market confidence, thereby accelerating the sector’s growth momentum.
Related News Articles
Bengaluru's Upcoming Metro Line: A Boost to South Bengaluru's Real Estate
The new metro line connecting south Bengaluru to the business district of Outer Ring Road is expected to boost real estate prices by 10-20 percent, local brokers say.
Atharv Lifestyle Receives Prestigious Excellence in Luxury Homes Award
Mumbai's real estate landscape has been significantly enriched by the recent recognition of Atharv Lifestyle. The company was honored with the Excellence in Luxury Homes Award at a high-profile event, attended by notable dignitaries and industry leaders.
Key Infrastructure Sectors See Slower Growth in September
Infrastructure, real estate, building, budget. Out of the eight key sectors, three recorded negative growth in September.
Telangana CM Seeks Centre's Help for Hyderabad Metro Rail Phase 2
Telangana Chief Minister K. Chandrashekhar Rao has appealed to the Centre for support in the second phase of the Hyderabad Metro Rail project. The expansion aims to further enhance the connectivity and reduce traffic congestion in the city.
Bengaluru Office Rents Expected to Rise by 5-7% in 2025, Driven by IT and AI Demand
The real estate market in Bengaluru is expected to see a 5-7% increase in office rents by 2025, primarily driven by high demand from the IT sector and AI research labs.
Mumbai Rents Surge 14.3% Y-o-Y Amidst Tight Supply
Mumbai's rental market is experiencing a significant surge, with rents increasing by 14.3% year-over-year due to tight supply conditions. This article explores the factors driving this trend and its impact on the real estate sector.