Jefferies has turned increasingly constructive on the Indian real estate sector, expecting pre-sales growth for listed developers to rise over 20% in FY26, up from 15% in FY25.
The brokerage cited strong project launch activity in Q1FY26, which lends credibility to developer guidance, contrasting the patchy execution seen last year.
It further noted that the recent rate cuts by the RBI are a relief for the mid-income and affordable housing segments, improving affordability and mortgage flow.
Despite the sharp rally in property stocks over the past year, Jefferies pointed out that most names continue to trade in line with their 5-year NAV premiums, leaving room for re-rating if visible sales growth persists.
Top picks include DLF, Godrej Properties (GPL), and Lodha (Macrotech Developers).
Disclaimer: The views and target prices mentioned are as stated by Jefferies and do not represent the opinions or recommendations of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
