Author: Aarya Shah | EQMint | General News

Real estate stocks saw sharp declines today, plunging by as much as 5 %, as investors rushed to book profits and global headwinds rattled confidence in the real estate sector. The Nifty Realty index slumped around 1.6 %, making it the worst performing sector on the National Stock Exchange (NSE) for the day.

Among the most affected, Anant Raj shares dropped nearly 4.7 % in intraday trade and were still down about 4.5 % by midday. Oberoi Realty fell around 2.24 %. Other major realty names also saw pressure: Brigade Enterprises lost ~2 %, Signature Global ~1.9 %, Godrej Properties ~1.7 % and DLF ~1.2 %. Stocks such as Phoenix Mills, Prestige Estate Projects, and Lodha declined between 0.6 % and 1.16 %. By contrast, the benchmark Nifty50 was trading lower by around 0.28 %.

This sudden weakness contrasts with recent gains. Just in the past few sessions, the Nifty Realty index has rallied about 3 % in October alone. On Tuesday, Anant Raj surged 4.34 %, Brigade Enterprises gained 3.64 %, Lodha Developers added 2.68 %, and The Phoenix Mills rose 1.09 %. Oberoi Realty, Godrej Properties, and DLF also registered modest gains of 0.25–0.88 %.

What’s Fueling the Selloff?

1. • Profit booking pressure
     After a streak of gains, investors appear to be harvesting returns in realty names, triggering a wave of selling.

1. • Slump in foreign capital inflows
     According to a recent Colliers India report, overall capital flows into India’s real estate sector in the first nine months of 2025 dropped by 9 % year-on-year, to about $4.3 billion. The sharpest fall came in foreign investments, down ~36 %, with inbound flows falling to $2.1 billion. Domestic sources partially offset this, with a 52 % YoY increase in domestic investor participation (~$2.2 billion). This pullback in foreign participation underscores rising caution among global investors toward Indian real estate amid macro uncertainties.

What’s Next for Real Estate?

Analysts remain cautiously optimistic about the medium-term outlook. Though external headwinds persist, key demand drivers are still intact in India’s housing sector:

• • Strong underlying demand in prime micro-markets is expected to sustain momentum.

• • Record launches and rising supply pipelines are poised to drive healthy absorption provided affordability holds up.

• • Sustainable, green, and transparent development practices are gaining importance and commanding buyer interest.

• • Affordable and mid-income housing continues to form the backbone of demand, while top-end housing is getting tailwinds from affluent buyers and investors.

For FY26, consistent performance is expected among credible developers and well-positioned projects, assuming global risks don’t derail sentiment.

In terms of stock picks, brokerage houses have started to differentiate. Godrej Properties has been initiated on “Buy” with a target of ₹2,614, while Oberoi Realty has received a “Neutral” view with a target of ₹1,784.

On the policy front, a draft external commercial borrowing (ECB) guideline from the Reserve Bank of India suggests that all real estate projects eligible for foreign direct investment (FDI) may also qualify for foreign loans. This move, if finalized, could ease funding constraints for qualified developers.

Meanwhile, festive season dynamics show a silver lining: developers have reported an uptick of 10–15 % in property inquiries and bookings. Whether this improves overall sentiment depends on sustained follow-through.

In sum, today’s drag on realty shares arises from a combination of profit booking and declining foreign flows. However, underlying demand and favourable policy shifts may cushion the sector, especially for well-capitalized and transparent developers. Investors will be watching closely whether the recent weakness is a mere hiccup or a sign of broader caution.

Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.