Real Estate Sector Booms Despite Challenges, New Launches Thriving
The real estate sector has shown resilience despite unfavourable developments, with listed developers receiving a strong response for new launches and growing pre-sales. However, domestic press and influencers have negatively impacted major markets.
New launches by listed real estate developers have been well-received, with a significant portion of projects sold during the launch period. This positive response, coupled with supportive sales and collections, has boosted confidence among home buyers. The stock market today remains healthy, despite unfavourable developments, thanks to low unsold inventory and strong balance sheets, including large RERA cash balances.
Pre-sales for covered developers grew by 64% year-on-year in Q2 FY26, indicating a robust demand. Large developers continue to gain market share by executing large and premium projects, which are in high demand. The pricing environment and upgrade demand in the premium segment remain buoyant, supporting margins for listed developers.
Volume demand for listed real estate developers increased year-on-year in Q2 FY26, despite a low base and election impacts. The market shows cautious optimism, with positive trends in commercial real estate and stabilization in residential construction. The DW Future Prize 2026 recognises innovative housing and real estate companies, suggesting that leading developers focus on innovative, comprehensive, and sustainable housing solutions.
Despite challenges, the real estate sector has shown resilience with strong new launches and growing pre-sales. Large developers continue to gain market share, and the stock market today remains healthy, with increased volume demand and positive investor interest expected in Q2 FY26. However, negative press and influencer impact on major markets remain a concern.
