Jefferies reports a strong festive season boost for the residential real estate market, with October sales reaching a six-month high. Value sales have grown by more than 20% YoY, supported by favorable pricing and a richer mix of product offerings. Listed developers are capitalizing on the festive momentum with large-scale launches planned for the second half of the fiscal year.
Despite a weak 2QFY25, Jefferies expects listed companies to deliver approximately 25% pre-sales growth for FY25, driven by robust demand for new projects. However, the realty index remains ~11% below its peak, with several stocks witnessing corrections.
Among listed players, Jefferies favors Godrej Properties, Lodha, and DLF, citing their strong project pipelines and ability to capture demand in the premium segment. The brokerage is optimistic about the sector’s growth trajectory despite near-term macroeconomic challenges.
