Who Gained & Who Slipped

Top Gainers:

• DLF, Oberoi Realty, and Macrotech Developers (Lodha) were among the standout performers, registering gains between 1%–2%.
• Godrej Properties and Prestige Estates also closed higher, buoyed by buying interest from institutional investors and traders positioning ahead of quarterly earnings.

Lagging Performers:

• Several mid- and small-cap realty names ended the day flat or marginally lower. Stocks that had seen sharp run-ups recently witnessed profit-taking, and lack of strong institutional support limited upside.
• Some smaller developers with weaker fundamentals underperformed the index, reflecting investor preference for safety in the current environment.

What Helped Realty Stocks Gain Today

1. Blue-Chip Momentum – Investors continued to rotate capital into large, fundamentally strong developers, driving the bulk of the index gains.
2. Rate Expectations – With inflation data in line with expectations and no hawkish surprises, real estate stocks benefited from stable borrowing cost sentiment, a key driver for the sector.
3. Value Buying – After a phase of consolidation, select institutional and retail investors saw the dip as an opportunity to accumulate quality realty names.
4. Macro Stability – A relatively stable broader market also lent support, preventing sector-specific weakness from spreading.

What to Look Ahead For Tomorrow

• Quarterly earnings season is set to pick up pace — key real estate developers are expected to announce presales and revenue numbers that could set the tone for the next leg of the rally.
• RBI commentary or bond yield movement may influence real estate sentiment, given the sector’s sensitivity to interest rates.
• Sector breadth will be closely watched — whether mid- and small-cap names join the rally or the gains remain concentrated in large caps will determine if this is a sustainable upmove or a narrow bounce.
• Any policy announcements or state-level housing initiatives could act as triggers for select developers.

Analysis: Quality Leads, Breadth Missing

Today’s session reinforced a two-speed market within real estate. Large, trusted developers with strong financials and execution track records attracted consistent buying, while smaller, speculative counters struggled for direction.

The underlying sentiment remains cautiously optimistic — stable macro conditions and upcoming earnings may support further gains. But without broader participation from mid-caps, the rally remains narrow and susceptible to quick reversals if flows falter.

For tomorrow, investors will keep an eye on earnings announcements, policy signals, and whether institutional flows continue to favor real estate as a sectoral play.

Also Read: Real Estate Stocks End Mixed as Big Developers Gain, Mid-Caps Slip

The post 🏢 Realty Stocks End Firm as Big Developers Lead Gains; Mid-Caps Stay Mixed appeared first on Square Feat India.

The report indicates a significant surge in high-end demand, with 42% of Bengaluru’s total ₹10 crore+ luxury home sales over the last four years occurring in FY25 alone. This growth is attributed to factors such as Bengaluru’s thriving tech economy, rapid improvements in infrastructure, and the increasing lifestyle aspirations of urban India’s affluent population.

Demand is particularly strong for luxury homes priced between ₹10–12 crore, as they offer a combination of value and exclusivity. Hebbal has emerged as the leading market for these high-value apartments, capturing 22% of the total sales value. Other areas in Bengaluru experiencing increased interest in luxury apartments include Domlur, Sudhamnagar, and Bomanahalli.

Apartments with sizes ranging from 5,000–7,000 sq. ft. are currently in high demand, reflecting a preference for spacious, upscale living.

Ashwin Chadha, CEO of India Sotheby’s International Realty, commented on this trend, stating, “Bengaluru’s luxury housing market has entered a new league. We’re seeing discerning buyers- especially CXOs, startup founders, and global Indians, investing not just in a home, but in a lifestyle. The demand today is driven as much by aspiration as by strategic asset allocation. What’s equally encouraging is the rise of new luxury hubs across the city. That said, Bengaluru’s infrastructure will need to keep pace with this rapid evolution. Going forward, we expect more steady and sustainable appreciation in prices as the market matures and becomes even more quality-conscious.”

The report suggests that this historic growth is fueled by rising demand from high-net-worth individuals (HNIs), startup founders, CXOs, and global Indians who are increasingly seeking aspirational properties that provide exclusivity, prime locations, and a high quality of life.

Also Read: Century Real Estate Reports Strong Growth Amid Rising Demand for Luxury Properties in Bengaluru

The post Bengaluru’s Luxury Housing Market Surges Past ₹1,000 Cr Milestone appeared first on Square Feat India.

Surge in Institutional Confidence

The sharp correction in Nifty 50 and Sensex since September 2024 has made retail and short-term investors cautious. However, institutional investors have taken a long-term view, particularly in real estate, which continues to attract strategic funding.

“Our analysis highlights the resilience of the real estate sector, supported by robust institutional confidence in India’s economic fundamentals,” said Anuj Puri, Chairman of ANAROCK Group. “Despite volatility, capital markets remain strong, and the sector has witnessed unprecedented QIP fundraising, reinforcing its financial strength and expansion potential.”

Real Estate Leads the QIP Boom

The real estate sector topped the list in both capital raised and the number of QIP issuances in 2024. The following table highlights major QIP transactions in the sector:

Comparing Trends: 2023 vs. 2024

The record-breaking QIP figures in 2024 mark a stark contrast to 2023, when only 43 QIP issues were recorded, raising INR 55,109 crore across all sectors. Notably, real estate developers did not raise any funds through QIPs in 2023, making 2024 a remarkable turnaround year for the sector.

Why QIPs?

QIPs have become the preferred fundraising method for developers due to their efficiency and cost-effectiveness compared to private equity and bank loans. They provide liquidity while minimizing shareholder dilution and enabling large-scale projects. Institutional investors, including mutual funds and pension funds, inject substantial capital, fueling sectoral growth.

The benefits of QIP fundraising include:

• Faster capital raising with lower costs
• Strategic funding for land acquisition, construction, and debt refinancing
• Enhanced market credibility, attracting further investments
• Accelerated project timelines and expansion capabilities

Stock Market Volatility and Real Estate Resilience

Throughout 2024, the Nifty 50 and Sensex experienced significant volatility. While the first half of the year saw strong corporate earnings and increased foreign institutional investment, market corrections in the latter half were driven by global geopolitical tensions, fluctuating oil prices, and changing monetary policies.

Despite these fluctuations, the real estate sector demonstrated resilience, with the Nifty Realty Index securing the fourth-highest annual gain at 34.67%.

Outlook for 2025

“The volatility seen in late 2024 suggests a mixed outlook for QIP fundraising in 2025,” said Puri. “However, the continued strength of the real estate index indicates sustained investor confidence.”

Institutional investors seeking stability amid broader market fluctuations are expected to remain active in real estate QIPs. If global monetary policies stabilize and domestic economic indicators remain strong, QIP fundraising in real estate is likely to maintain momentum, supporting further expansion, land acquisitions, and debt refinancing for major players.

Conclusion

Despite stock market volatility, 2024 set a new benchmark for QIP fundraising, particularly in the real estate sector. Institutional investors continue to back India’s real estate market, recognizing its long-term growth potential. With continued investor confidence and strategic capital inflows, the sector is poised for sustained expansion in 2025 and beyond.

Source: NSE & ANAROCK Research

Also Read: Ajay Devgn real estate

The post QIP Fundraising Reaches Record High in 2024, Real Estate Leads with INR 22,320 Cr appeared first on Square Feat India.

The overall absorption in Q3 2024 reached a record 18.61 million square feet, making it the highest quarterly absorption for the year. This marks a 17% increase year-on-year and a 9% rise compared to the previous quarter. The strong growth in demand can be attributed to India’s robust GDP growth, which has outpaced many major global economies, attracting multinational companies to lease new office spaces or expand their existing footprints.

Despite global uncertainties, including geopolitical tensions in the Middle East, the Indian office market has seen a steady uptick in both absorption and supply. New office space completions rose by 3% over the previous quarter, totaling 12.80 million square feet in Q3 2024. However, the pace of new construction has slowed, with a 4% decline compared to the same quarter last year.

With strong absorption and healthy supply, vacancy rates across India’s office markets dropped by 90 basis points, falling to 14.8% in Q3 2024. However, despite the decrease in vacancy rates in major cities, average rental rates remained relatively stable across most markets.

City-Wise Highlights

• Bengaluru remained the top performer, accounting for 36% of the total office space absorption in Q3 2024, a sharp increase from 25% in Q2 2024. The city absorbed 6.63 million square feet, a rise of 56% compared to the previous quarter. The city also saw the highest rental appreciation, with rents rising by 1.1%.
• Hyderabad followed with 2.79 million square feet of absorption, though its demand decreased by 18% from the previous quarter. The city also led in new completions, with 4.10 million square feet of office space delivered, up 41% from the previous quarter.
• NCR (National Capital Region) saw a remarkable 118% quarter-on-quarter increase in office space absorption, primarily driven by a surge in demand from Flex Spaces, which helped boost its absorption to 2.49 million square feet.
• Chennai and Mumbai showed less impressive numbers in terms of absorption and construction. Chennai saw no year-on-year growth in absorption and a 29% drop in new completions. Mumbai, on the other hand, experienced a significant slowdown, with absorption dropping by 34% and new completions down by 73%.
• Pune reported strong growth in absorption, rising 112% year-on-year to 2.33 million square feet, though it saw a 19% decrease compared to Q2 2024.

Trends and Outlook

• The southern cities—Bengaluru, Chennai, and Hyderabad—continued to dominate the market, together accounting for 61% of the national absorption, up from 55% in the previous quarter.
• Bengaluru saw a substantial increase in its share of absorption, rising to 36% from 25% in Q2 2024, while the share of Mumbai fell from 20% to 12% during the same period.
• Vacancies in cities like Bengaluru and Pune remained low, with single-digit vacancy rates of 8.2% and 7.2%, respectively, reflecting strong demand in these markets.

The office space market in India continues to evolve, with a clear shift toward sectors like BFSI and Flex Spaces driving demand. This trend, coupled with increasing construction activity in select cities, suggests that the market will remain dynamic in the coming quarters, with opportunities in both established and emerging locations.

Also Read: Real Estate Demand Soars in India’s BFSI Sector, Projected to Break 2023 Leasing Records in 2024

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The trend of increased property registrations is not limited to October alone. September 2024 saw 9,111 registrations and revenue of ₹876 crore, while August recorded an impressive 11,631 registrations with revenue reaching ₹1,061 crore.

Experts attribute this upward trend to several factors, including favorable interest rates, a stable job market, and ongoing government initiatives aimed at promoting affordable housing. Additionally, the festive season has historically been a favorable time for real estate transactions, further fueling demand.

Real estate analysts note that the robust registration figures indicate a recovery in the market, suggesting that buyers are overcoming previous economic uncertainties. “The growth in registrations showcases the resilience of Mumbai’s real estate sector. Buyers are increasingly recognizing the value of investing in property, particularly in a city known for its dynamic economy,” said a local market analyst.

With continued demand and positive market sentiment, stakeholders in Mumbai’s real estate sector remain optimistic about the months ahead. As the city continues to evolve, it seems poised for sustained growth, making it an attractive destination for both local and international investors.

Conclusion

As Mumbai’s property market flourishes, the increased registration figures and revenue highlight a promising trajectory. Stakeholders and prospective buyers will be keenly watching how this momentum unfolds in the coming months, particularly as the festive season approaches.

The post Mumbai’s Property Market Shows Resilience with Rising Registration Figures and Revenue appeared first on Square Feat India.

Launches: A Significant Decline

The Q3 2024 figures reveal that Mumbai emerged as the frontrunner in new housing launches, commanding a substantial 74% share of MMR’s total launches. The cities of Navi Mumbai and Thane followed with 14% and 12%, respectively. This concentration underscores Mumbai’s pivotal role in the regional housing market.

Within the launched units, the affordable and mid-end segments represented a combined 58%, with 30% attributed to affordable housing and 28% to mid-range developments. This trend suggests that despite the overall decline in launches, there remains a focus on catering to the demands of budget-conscious buyers.

Sales: A Mixed Bag

In terms of sales, the MMR recorded approximately 36,200 units sold in Q3 2024, representing a robust 34% of the national sales volume. However, this figure reflects a 13% decline compared to the previous quarter and a 6% decrease year-over-year, raising concerns about sustained demand in the market.

Mumbai’s contribution to MMR sales was substantial, accounting for 69% of the region’s total sales volume. The Peripheral Central Suburbs were particularly active, capturing 39% of the sales, while the Peripheral Western Suburbs followed with a 22% share. This indicates a shift in buyer preference towards suburban areas, where housing options may be more affordable and spacious compared to the densely populated city center.

Market Insights

The drop in both new launches and sales could be attributed to various factors, including rising interest rates, economic uncertainties, and changing buyer preferences. Despite the downturn, the continued strong demand for affordable and mid-range housing suggests that there remains a robust market segment, with many buyers actively seeking options within these price ranges.

Real estate experts suggest that developers may need to recalibrate their strategies to adapt to the current market conditions. Focus on customer-centric projects, flexible payment plans, and enhanced amenities could be pivotal in driving sales and sustaining interest in new launches.

Conclusion

As the MMR housing market navigates these fluctuations, stakeholders will need to closely monitor trends and adjust their approaches accordingly. With a significant share of national sales and a continued emphasis on affordable housing, the MMR remains a critical barometer for the overall health of India’s real estate landscape. Looking ahead, the market’s recovery will depend on a combination of strategic development, economic stability, and responsive policymaking to foster buyer confidence.

Also Read: Toll Fees Waiver for LMVs, ₹250 Crore, nothing in front of relief for MMR citizens

The post MMR Housing Market Overview: Q3 2024 Shows Mixed Trends in Launches and Sales appeared first on Square Feat India.

Anuj Puri, Chairman – ANAROCK Group

The government’s revised budget announcement allows taxpayers to pick between a 12.5% Long-Term Capital Gains (LTCG) tax rate without indexation and a 20% rate with indexation, for properties purchased before July 23, 2024. This will have a very profound impact on both homeowners and aspiring homebuyers.

Homeowners: This change gives homeowners flexibility in their tax liabilities when they sell their property. For properties held over a long period, where inflation has majorly raised the property’s value, opting for the 20% tax rate with indexation would be beneficial. Indexation adjusts the purchase price for inflation, potentially reducing the taxable gain and overall tax liability. For properties held for shorter periods or in low-inflation periods, the 12.5% rate sans indexation could be more beneficial and result in a lower tax burden.

Homebuyers: This revision can potentially stimulate the residential property market because it provides clarity and implies potential tax burden reduction. Homebuyers’ sentiment will improve as they have flexible options for addressing their future capital gains tax burden. This will result in higher demand, particularly in markets where property values have been seen to rise significantly.

Also, the anticipation of these changes can potentially cause some homeowners to sell properties sooner to benefit from the new tax regime. This will raise the overall supply of housing units available on the market, helping to keep prices in check.

As per ANAROCK Research, H1 2024 saw total sales of nearly 2.51 lakh units across the top 7 cities, 9% more than the same period last year (H1 2023). Given that Q2 2024 saw sales tapering due to the election heat and the increased prices across cities, the new tax imposed by the government in the budget was considered a dealbreaker for many. Now, with the government giving these options to the homebuyers, housing sales momentum will continue unimpeded.

Also Read: More than 50% of Developers Seek Tax Rationalization and Lower Interest Rates from New Government

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