Nifty Realty Gains as India’s Housing Market Shows Signs of Recovery
India’s residential real estate sector showed a modest recovery in Q3FY25, with sales rising 10% sequentially but remaining 8% lower YoY, primarily due to a 35% YoY decline in new launches. Listed developers, however, witnessed a strong rebound in pre-sales, led by DLF (₹121B, +34% YoY), Signature Global (₹27.7B, +120% YoY), Oberoi Realty (₹19.2B, +144% YoY), Lodha (₹45.1B, +32% YoY), and Sunteck (₹6.3B, +40% YoY). In contrast, Prestige reported ₹30B in pre-sales, down 43% YoY, highlighting uneven performance.
The Nifty Realty index gained 1.2% on February 20, extending its four-day rally, supported by Finance Minister Nirmala Sitharaman’s Budget 2025 tax exemption up to ₹12 lakh and the RBI’s 25 bps rate cut, improving affordability and boosting sentiment. With valuations at 6-10x EV/EBITDA (FY26E), developers expect double-digit sales growth in Q4FY25, driven by improved launches and execution momentum, though regulatory delays remain a challenge.