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Informist, Monday, Dec. 1, 2025                                     

MUMBAI – Nuvama Institutional Equities expects volatility in real estate companies to persist and they are likely to move in range, it said in a research report. While the registration of housing units in Mumbai rose robustly, the affordability of houses have become a key issue to resolve in the near term, according to the brokerage. Housing units registered in Mumbai rose 20% on year to 12,283 units in November, the broking firm said in a sector update report. This growth was also the second-highest registrations by units since November 2013. By value, registrations were registered at an overall value of INR 174 billion, up 13% on year.

Residential properties continued to dominate registrations during the month with an 80% share, the report said, quoting international property consultant Knight Frank. The brokerage retained its view in September that the Mumbai market has entered into a mid-cycle stage due to a sharp increase in supply.

"We reckon only moderate price growth going ahead," the broking firm said. The fact that demand has already crossed the peak of the previous upcycle means that affordability needs to improve to take absorption to a new high, the brokerage said. Year-to-date, housing registrations are at an all-time high of 135,870 units, up 6% on year. The registrations betweem Jan-Nov by value grew 11% on year to INR 2.04 trillion. Volumes have moderated in the Mumbai Metropolitan area, throwing challenges for Mumbai-based players such as Lodha Developers, Oberoi Realty, Godrej Properties, and Sunteck Realty. 

Weak volume growth amid lower affordability and insufficient availability of mid-income houses and job generation amid tariff concern are the issues to be resolved in the near term. And, hence, the brokerage expects the volatility in the share prices to persist and sees the realty stocks to move in a range. 

On Monday, the Nifty Realty closed over 1% lower at 893.90 points. Shares of Oberoi Realty Ltd., Lodha Developers Ltd., and DLF Ltd. closed nearly 2% lower and those of Prestige Estates Projects Ltd. and Godrej Properties closed 1% lower.  End

Reported by Arundathi A R

Edited by Akul Nishant Akhoury

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