Top 5 Realty Stocks That Have Dipped by Up to 40% in the Last Year
Explore the reasons behind the significant decline in the top real estate stocks, including DLF, Max Estates, Godrej Properties, Aditya Birla Real Estate, and Sobha, over the past 12 months.
Real Estate News:The real estate sector in India has faced significant headwinds over the past year, with several leading players witnessing sharp corrections amid macroeconomic pressures and muted demand. Five major realty stocks, including DLF, Max Estates, Godrej Properties, Aditya Birla Real Estate, and Sobha, have delivered negative returns of up to 40% in the last 12 months.
The real estate sector in India has underperformed over the past year primarily due to rising interest rates, regulatory changes, price inflation, slower demand, especially for affordable housing, and global geopolitical disruptions.
DLF Ltd
DLF Ltd is one of India’s largest real estate developers, founded in 1946 and headquartered in Gurugram, Haryana. The company has played a pioneering role in shaping India’s urban landscape, particularly through the development of residential, commercial, and retail projects. With a market capitalization of Rs. 1,80,128 cr, the shares of DLF Ltd are currently trading at Rs. 729 per share, down from Rs. 920.40 last year. The stock has fallen 21%.
Max Estates Ltd
Max Estates Ltd is a prominent real estate development company based in India, operating primarily in the Delhi NCR region. Max Estates focuses on creating sustainable, Grade A residential and commercial properties that prioritize well-being and quality of life. The company’s portfolio includes notable projects such as Max Towers and Max House in Noida, as well as Estate 128 in Noida and 222 Rajpur in Dehradun. With a market capitalization of Rs. 7,185 cr, the shares of Max Estates Ltd are currently trading at Rs. 445.05 per share, down from Rs. 612.45 last year. The stock has fallen 27%.
Aditya Birla Real Estate Ltd
Aditya Birla Real Estate Limited (ABREL) is the real estate arm of the Aditya Birla Group, one of India’s leading conglomerates. Established in 1897 as Century Textiles and Industries Ltd., the company rebranded to ABREL in 2024 to reflect its strategic focus on real estate development. It specializes in premium residential, commercial, and mixed-use properties. With a market capitalization of Rs. 20,222 cr, the shares of Aditya Birla Real Estate Ltd are currently trading at Rs. 1,811 per share, down from Rs. 2,744.60 last year. The stock has fallen 34%.
Sobha Ltd
Sobha Ltd was founded in 1995 and is a leading Indian multinational real estate developer. Known for its backward-integrated model, Sobha handles design, construction, and manufacturing in-house to ensure high-quality projects. The company has a strong presence across 27 Indian cities and in Dubai, developing luxury residential communities, commercial spaces, and integrated townships. With a market capitalization of Rs. 16,867 cr, the shares of Sobha Ltd are currently trading at Rs. 1,577 per share, down from Rs. 2,015.40 last year. The stock has fallen 21%.
Godrej Properties Ltd
Godrej Properties Ltd was founded in 1990 and is headquartered in Mumbai. It is a leading Indian real estate developer and part of the Godrej Group. Operating across 12 major cities, the company develops residential, commercial, and township projects, with notable developments like Godrej BKC and Planet Godrej. With a market capitalization of Rs. 59,904 cr, the shares of Godrej Properties Ltd are currently trading at Rs. 1,993 per share, down from Rs. 3,327.45 last year. The stock has fallen 40%.
These declines highlight the challenges faced by the real estate sector, which has been affected by a combination of economic, regulatory, and market factors. Investors should exercise caution and seek professional advice before making any investment decisions in these stocks.
Frequently Asked Questions
Why have real estate stocks performed poorly in the past year?
Real estate stocks have underperformed due to rising interest rates, regulatory changes, price inflation, slower demand for affordable housing, and global geopolitical disruptions.
What is the market capitalization of DLF Ltd?
The market capitalization of DLF Ltd is Rs. 1,80,128 cr.
How much has the stock of Aditya Birla Real Estate Ltd fallen in the past year?
The stock of Aditya Birla Real Estate Ltd has fallen 34% in the past year.
What are the notable projects of Max Estates Ltd?
Notable projects of Max Estates Ltd include Max Towers and Max House in Noida, Estate 128 in Noida, and 222 Rajpur in Dehradun.
What is the current share price of Godrej Properties Ltd?
The current share price of Godrej Properties Ltd is Rs. 1,993 per share.