Real estate stocks to buy in FY27: Analysts favour Lodha, DLF, Sobha

Analysts expect Indian real estate growth to slow in FY27, but see opportunities in Lodha, Sobha, Mahindra Lifespace, DLF and Prestige Estates amid healthy demand for project launches Real estate stocks to buy: Why analysts are bullish on Lodha, DLF and Prestige Estates despite slower FY27 growth outlook | Image: Bloomberg Nikita Vashisht New Delhi Listen to This Article Real estate stocks to buy India's residential real estate sector is entering the 2026-27 financial year (FY27) on a firm footing, though analysts said the vertical growth seen over the last four years may not repeat this time. This is because the real estate market is transitioning into a more mature phase of the housing cycle, they said. From an investment viewpoint, analysts expect select listed players to outperform the broader market, aided by consolidation, strong balance sheets and a preference among buyers for branded players. "While we expect the overall market to move into a slower growth phase in FY27, listed developers should continue to outperform the broader market due to consolidation, branded demand shift, and premium segment resilience," Emkay Global Financial Services said in a sector report. It added that growth will become "more selective and driven by execution strength rather than broad-based demand expansion." The brokerage noted that pre-sales growth for 18 listed developers slowed to 17 per cent in FY26 from 20 per cent in FY25, 39 per cent in FY24, and 43 per cent in FY23. It, now, expects FY27 pre-sales growth to further moderate to 10-15 per cent. While the overall residential demand remains supported by structural factors such as urbanisation, premiumisation and market-share gains by organised developers, uncertainties around artificial intelligence-led job disruptions, geopolitical tensions, slower wage growth, and moderating corporate earnings could temper sector-wide growth, Emkay Global cautioned. On the bourses, all stocks in the Nifty Realty index have declined, so far, in calendar year 2026. Individually, Brigade Enterprises, Aditya Birla Real Estate, Lodha Developers, DLF, Prestige Estate, and Godrej Properties have underperformed the market by falling in the range of 14.5 per cent to 25.4 per cent. By comparison, the Nifty50 index and the Nifty Realty index have dropped 10.5 per cent and 12.5 per cent, respectively, year-to-date. FY27 starts on a resilient note Despite concerns over slower sector growth, analysts expect the first quarter (Q1) of FY27 to begin on a healthy footing, supported by a strong launch pipeline. Channel checks by global brokerage Nomura suggests Q1FY27 to likely witness a “resilient start”, led by a relatively stronger launch line-up from Godrej Properties, Oberoi Realty and Sobha. It expects three super-luxury launches in NCR -- Oberoi Realty's 360 North, Godrej Properties' Samaris, and Sobha's Crescent project -- to emerge as key demand drivers for the quarter. "Projects launched during the quarter have received encouraging market response. Demand for Godrej Properties’ Samaris project in Gurgaon and Sobha's Crescent development remain resilient despite premium pricing," Nomura said. It also remains confident about Prestige Estates' Golden Grove project in Hyderabad, and Sobha’'s One World township project in Bengaluru. Likewise, Emkay Global expects Mahindra Lifespace's Rainforest project near Mumbai's Kanjurmarg to generate bookings of ₹900-1,000 crore in Q1FY27, while noting a "strong traction" for Prestige Estates’ recently launched Golden Grove project in Hyderabad. Check - TOP GAINERS NSE | TOP LOSERS NSE Stock strategy: Focus on balance sheets and execution With growth becoming more selective, brokerages recommend focusing on developers with strong project pipelines, execution capabilities and healthy balance sheets. Emkay's preferred picks are Mahindra Lifespace Developers, Sobha and Lodha Developers. "We expect Mahindra Lifespace and Sobha to emerge as key outperformers, supported by robust launch pipelines and medium-term pre-sales CAGR of about 20-25 per cent over the next 3-4 years," it said. Lodha, meanwhile, remains its preferred large-cap developer due to its disciplined execution and calibrated growth strategy. "We expect it to deliver around 17 per cent pre-sales growth in FY27 and sustain 10-15 per cent CAGR over the next 4-5 years," it said. Nomura, on the other hand, prefers Lodha Developers, Oberoi Realty, DLF, Prestige Estates and Aditya Birla Real Estate. All stocks are 'Buy' rated except Godrej Properties, which has a 'Neutral' rating. ===================== Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised. Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Jun 02 2026 | 1:56 PM IST