Why Are Real Estate Stocks Sliding Today? A Closer Look at the Market Trends
Real estate stocks took a hit today, with some shares falling up to 5% on the NSE. The Nifty Realty index slipped 1.6%, driven by profit booking and a decline in foreign capital inflows.
Real EstateStock MarketNifty RealtyProfit BookingCapital InflowsReal EstateOct 08, 2025
Among individual stocks, Anant Raj's share price dropped 4.7% intraday and was 4.5% down at 12:15 PM. Oberoi Realty shares fell 2.24%, while Brigade Enterprises, Signature Global, Godrej Properties, and DLF saw declines of 2%, 1.9%, 1.7%, and 1.2% respectively. Phoenix Mills, Prestige Estate Projects, and Lodha saw their shares drop between 0.6% and 1.16%. By comparison, the Nifty50 index traded 0.28% lower.
On the previous day, most real estate stocks saw a sharp rise. Anant Raj's shares rallied 4.34%, followed by Brigade Enterprises (3.64%), Lodha Developers (2.68%), and The Phoenix Mills (1.09%). Shares of Oberoi Realty, Godrej Properties, and DLF rose between 0.25% and 0.88%. The Nifty Realty index was up 1.08% on Tuesday.
In just four trading sessions in October, the Nifty Realty index has climbed 3% on the NSE. However, today's decline in real estate stocks can be attributed to profit booking and a decline in capital inflows in the sector during the first nine months of the calendar year 2025 (9M2025).
According to a recent report by Colliers India, capital flows into India’s real estate sector declined by 9% year-on-year (Y-o-Y) to $4.3 billion during 9M2025. This decline is largely due to a deceleration in foreign investments, which fell 36% Y-o-Y to $2.1 billion. Despite this, domestic investors have stepped in, increasing their investments by 52% Y-o-Y to $2.2 billion.
Analysts predict that the housing demand in India’s real estate sector will hold its ground in key locations in 2025, supported by record launches and rising supply. For the financial year 2025-26 (FY26), the market is expected to maintain a balance, favoring credible developers, prime projects, and healthy absorption, with robust sales barring major global disruptions.
India’s housing market experienced a boom in 2024, with record sales, new launches, and strong price growth, particularly in Delhi-NCR and Bengaluru. Despite low rental yields, demand for ownership surged, supported by structural reforms and improved transparency. The sector's focus on sustainability, professionalism, and investor participation marks a significant evolution from its fragmented past.
“2025 real estate demand is being shaped by a mix of global and local factors, with residential properties dominating. Sustainability and green building practices are influencing buyer preferences, with environmentally friendly and energy-efficient properties commanding premiums. While affordable and mid-income housing remains the backbone of demand, luxury housing is witnessing strong momentum in wealthier markets, supported by high-net-worth individuals and foreign investors,” according to Phillip Capital.
The brokerage has initiated coverage on Godrej Properties (GPL) with a ‘Buy’ rating (target: ₹2,614) and Oberoi Realty with a ‘Neutral’ rating (target: ₹1,784).
Additionally, the Reserve Bank of India’s draft external commercial borrowing (ECB) policy suggests that the central bank may allow ECBs in all real estate projects eligible for foreign direct investments (FDI). This means a project that qualifies for foreign equity is also eligible for foreign loans. Furthermore, real estate developers have reported a 10–15% increase in property inquiries and bookings amid the onset of the festive season.
Frequently Asked Questions
What caused the decline in real estate stocks today?
The decline in real estate stocks today is primarily due to profit booking and a decline in capital inflows in the sector during the first nine months of 2025.
How much did the Nifty Realty index fall today?
The Nifty Realty index slipped 1.6% today.
Which real estate stocks saw the biggest drop?
Anant Raj's share price dropped 4.7% intraday and was 4.5% down at 12:15 PM. Oberoi Realty shares fell 2.24%.
What is the outlook for the real estate sector in 2025?
The housing demand in India’s real estate sector is expected to hold its ground in key locations in 2025, supported by record launches and rising supply. The market should see a balance favoring credible developers, prime projects, and healthy absorption.
What is the Reserve Bank of India's stance on external commercial borrowings (ECBs) for real estate projects?
The Reserve Bank of India’s draft ECB policy suggests that the central bank may allow ECBs in all real estate projects eligible for foreign direct investments (FDI).
Related News Articles
Pune's Nightlife Takes a Hit: Under-25s Barred from Popular Clubs
Following the Porsche accident case
Domestic Abuse in Pune: Woman Abducted by Husband and In-Laws, Police Investigation Underway
A shocking incident of domestic violence has come to light in Pune, where a woman was kidnapped by her husband and in-laws, sparking a police investigation.
Schneider Electric Revolutionizes India's Real Estate Market with Innovative Solutions
Schneider Electric unveiled pioneering Home Energy Management Solutions at BuildCon 2024, catering to India's growing demand for smart and sustainable homes.
US Real Estate Mogul Brandon Miller's Shocking Debt Revealed After Tragic Death
Brandon Miller, a wealthy real estate developer, had only $8,000 in his bank account despite owing $34 million in debt. His financial struggles were largely due to his lavish lifestyle and massive loans on his Hamptons mansion.
PVR INOX to Shut Down 70 Underperforming Screens in FY25
The company plans to explore the potential monetisation of non-core real estate assets located in prime areas, including Mumbai, Pune, and Vadodara.
Real Estate Slump in Indore During Diwali: High Prices and Excess Inventory Dampen Sales
Despite the festive season of Diwali, real estate sales in Indore remain sluggish, primarily due to high property prices and an oversupply of inventory.