Profit-taking in real estate shares, which caused the Nifty Realty index to decline 16.6 per cent in 2025, has continued into 2026. As of January 2026, the Nifty Realty index has fallen by 10.2 per cent, with the majority of its components reaching 52-week lows. In contrast, the Nifty 50 index has decreased by 3.7 per cent in the same timeframe (up to January 20). Analysts attribute the ongoing decline in real estate stocks to cyclical adjustment due to elevated prices, decreased launch activity, and an adverse base effect. They noted that the decline comes after a two-year surge that led the Nifty Realty index to rise 34.3 per cent in 2024 and 81 per cent in 2023, leading to profit-taking due to high valuations and weakness in the overall market