India realty stocks set for biggest weekly drop in 11 months; weak pre-sales a concern, says Nuvama

Prestige Estates Projects

23/01/2026 05:36

** Nuvama says housing sales value fell 6% y/y in December quarter, steepest since the upcycle began in 2021

** India's real estate sector has logged strong growth since 2021 after years of stagnation

** Remains "neutral" on housing stocks despite correction

** Nifty Realty index .NIFTYREAL down 9.2% this week, set for biggest drop in about 11 months

** Godrej Properties GODR.NS, Lodha Developers LODH.NS slide 15.3% and 13.5% for the week, respectively

** Brigade Enterprises BRIG.NS falls 9.3%, Oberoi Realty OEBO.NS down 11.3% and Sobha Ltd SOBH.NS loses 12.3%

** Nuvama believes correction likely to continue due to concerns about pre-sales growth

** Says, housing volumes would remain soft until developers reduce focus on luxury segment and reorient towards mid-income and premium segment, and focus on improving affordability by keeping prices and ticket size contained

** Prestige Estates Projects PREG.NS is top pick; says companies with sizeable annuity portfolio should still do well on a relative basis

 (Reporting by Vivek Kumar M)

 ((VivekKumar.M@thomsonreuters.com;))