Large developers drew selective buying interest, helping anchor the sector, while mid-cap and smaller realty counters remained mixed in performance.

Opening Moves — Cautious But Stable

As the trading session got underway:

• The Nifty Realty index opened near its previous close and traded in a limited band.
• Large-cap realty stocks showed moderate strength, reflecting confidence in balance-sheet quality and demand visibility.
• Mid-cap and small-cap stocks had mixed openings, with some early profit-taking visible.
• Overall trading volumes were moderate to light, a sign traders are assessing conditions before committing aggressively.

This early trend suggests the sector is in consolidation mode, with modest optimism underpinning the opening.

Large Developers Provide Stability

Investors favored names with demonstrated execution strength and stable financials. Early buying interest was seen in companies with:

• Robust pre-sales momentum
• Strong project pipelines in key urban markets
• Stable pricing power in the residential segment

These attributes have made large developers a safe haven within the real estate pack, particularly on cautious opening sessions like today.

Mid-Caps Trade Mixed

While large players found buyers, mid-tier realty stocks saw varied responses:

• Some counters faced early profit-booking after recent gains
• Others traded sideways due to a lack of new catalysts
• Mid-cap movement reflected selective participation, with traders waiting for clearer signals before recommitting

This divergence between large and mid-cap stocks is consistent with recent sector patterns.

What to Expect Through the Day

The rest of the trading session could see the realty sector remaining range-bound unless fresh developments emerge. Market participants will be watching closely for:

Potential Upside Catalysts

• Announcements from major developers regarding presales, bookings, or new project launches
• Uptick in institutional flows into the sector
• Broad market strength lifting cyclical stocks, including real estate
• Sector-specific news such as policy updates affecting housing demand

Downside Risks

• Continued profit-taking in mid-caps
• Lack of fresh sector news
• Weak participation from retail investors
• Broader market volatility spilling into realty names

The realty index may gain traction in the afternoon session if favorable developments emerge, particularly in large developers.

Analysis — A Consolidated Start With Selective Interest

Today’s opening suggests that the real estate sector is being approached with cautious optimism. The fundamentals that have supported the sector — strong housing demand, improving cash flows, and better project execution — continue to hold. However, the absence of major news or triggers has kept the early session muted.

Large developers have once again acted as the anchor for the segment, while mid-cap and smaller names await clearer direction. Traders are likely to remain selective, watching for fresh corporate cues, broader market momentum, and any macroeconomic signals that can influence sentiment through the day.

Also Read: Realty Stocks Rally as Markets Close — Big Developers Lead Charge

The post 🏗️ Realty Stocks Open Flat-to-Mildly Positive as Markets Kick Off; Sector Eyes Intraday Cues appeared first on Square Feat India.

The company recorded a sales value of INR 270 crore for Q3 FY25, marking a 7% year-on-year (YoY) growth compared to INR 253 crore in Q3 FY24. The growth in sales was fueled by the successful launch of Ajmera Iris, a premium residential project in Bengaluru, which saw 47% of its inventory sold within the quarter.

Ajmera Realty’s performance in the third quarter was further reinforced by its steady collection figures, which rose by 10% YoY to INR 167 crore, up from INR 151 crore in the same period last year. This growth in collections reflects strong customer payouts, and the company’s ability to convert sales into cash flow.

The total carpet area sold during Q3 FY25 grew by 59% YoY to 1,65,116 square feet, compared to 1,03,573 square feet in Q3 FY24. The company also showed strong growth in its nine-month performance (9M FY25), with sales value increasing by 14% to INR 830 crore, up from INR 730 crore in the corresponding period of FY24. Likewise, collections for the nine-month period surged 25%, reaching INR 464 crore, compared to INR 373 crore last year.

One of the key contributors to the sales performance was the Ajmera Vihara project, which achieved 61% sales in the first nine months of FY25. The launch of new projects like Ajmera Iris and the limited inventory available in ongoing projects have been pivotal in maintaining sales momentum throughout the year.

Commenting on the company’s performance, Mr. Dhaval Ajmera, Director at Ajmera Realty & Infra India Ltd, said, “In Q3 FY25, Ajmera Realty delivered a steady performance, with sales driven by our recently launched portfolio and limited inventory availability across projects. The velocity of our launched portfolio contributed over 40% to our sales during the nine-month period, demonstrating our ability to align with market expectations.”

Looking ahead, Mr. Ajmera expressed optimism about the upcoming quarters. He highlighted that the company is well-capitalized following a recent successful preference issue and that the easing of interest rates, coupled with improved macroeconomic conditions, is expected to bolster the real estate sector. “As we progress through CY25, we anticipate robust sales growth supported by easing rates and improving market sentiment,” he added.

With an ambitious target of achieving 5x growth in the coming years, Ajmera Realty is poised to capitalize on emerging market opportunities, focusing on delivering value to stakeholders while maintaining its position as a key player in India’s real estate sector.

Also Read: 59 Land Deals for 2,018+ Acres Closed Across India in 2023 YTD

The post Ajmera Realty Achieves INR 270 Crore Sales in Q3 FY25, Driven by Launch of ‘Ajmera Iris’ appeared first on Square Feat India.

The office, residential as well as warehousing segments have performed extremely well in 2022 and is expected to continue their upward trajectory in 2023 as well, according to JLL’s Year ender ‘The 2022 story: Indian real estate’s rise from the lows.”

Net absorption in office space for 2022 is likely to be up ~50% Y-o-Y with 2023 expected to further build on the gains of this year. Supply addition and forecast pipeline remain strong with institutional share at 30%; headline vacancy is likely to inch up within a tight range. The net absorption in 2023 for office space is expected to be at 37-40 million sq ft. The net absorption for the first nine months of 2022 (Jan-Sep 2022) is at a three-year high of 30.3 million sq. ft and on track to match the 5-year average (2015-2019) for the full year.

The good news comes from the green front with India’s Grade A office stock’s green certifications expected to surpass 45% by end of 2022 and likely to inch to the 50% mark by end of 2023.

The core market vacancies have remained in single digits and are expected to remain so, though short-term vacancies may inch up as demand momentum gets slightly softened in the wake of global headwinds. There is a slight decline in space take-up by tech firms, but manufacturing, healthcare, and flex are major movers in 2022 and are also expected to remain big drivers of office demand in 2023. The tech, as well as the GCC story, will continue to support the office market momentum in 2023 as well

“The year 2022 has been the year of a sustained turnaround for the Indian real estate sector, after two COVID-impacted years. The Indian office markets are on track to record net absorption levels like the pre-COVID 5-year average with a potential upside next year clearly outlining the resilience amid India’s dominance as the outsourcing/offshoring hub of the world and its innovation ecosystem creating new office demand. The turnaround in the residential sector has been nothing short of remarkable, with the sector poised to surpass decadal highs in apartment sales numbers. India’s warehousing & light manufacturing sector is expected to cross 40 million sq. ft in space demand in 2022, the highest ever with further growth anticipated driven by 3PL and the growth in the urban logistics landscape. ESG and rising input costs have also been key themes defining the in real estate this past year,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL. 

“We will keep our eyes on the evolving headwinds, with inflationary pressures and global growth in our rear-view mirror. The office, residential and warehousing segments are all on track to improve further on their 2022 performance and we will watch the next year unfold with anticipation. For real estate, concrete ESG actions and asset pricing will also be key defining elements in the next year,” he added further. 

Flex (ing) it’s way up

Flex is expected to nearly match its peak activity of 2019 in terms of space take-up by operators with managed and bespoke enterprise models driving growth in this segment. Flex is now a key part of portfolio strategy. Hybrid working and strategic occupier diversification to Tier II and III cities amid talent dispersion were key elements to office space planning in 2022. With the “Return to Work” gaining full force, real estate planning will center around talent mobility, healthy workplaces, and employee value propositions. The 9-month flex seat take-up is already at an all-time peak of ~95,000 seats, with the year likely to end more than 120,000 seats. Similar growth momentum is expected in 2023 with flex integral to workplace strategy, return to work, and creating new-age offices allowing for zero CAPEX spend for a fully managed, ‘space as a service offering.

Living it up:  Residential segment at new highs, affordability may be impacted

The residential segment has witnessed the smartest and the fastest recovery with annual sales in 2022 expected to surpass 200,000 units, the highest in over a decade and near next to the 2010 sales of 216,762 units. Quarterly residential sales were over 50,000 units in each of the first three quarters of 2022. As incomes get adversely impacted by inflationary pressures and global headwinds, the affordability synergy prevailing in the last six months has been challenged. While affordability is likely to be impacted, the slowing momentum looks to be temporary with the country’s focus on economic growth along with the likely easing of inflationary pressures.

The trend of launching plotted developments and independent floors is expected to grow with buyer preferences more toward such products. Developers also get the advantages of faster execution and quick inventory liquidation with such products.

Apart from the affordable and mid-segment, the traction is expected to take place in the premium segment as well backed by launches by established developers in prime locations. Moreover, there is rising demand for bigger homes with good amenities. It is expected that the market share of established and credible developers will increase further with buyers preferring developers with a proven track record, robust financial strength, and execution capability. The sector is expected to witness consolidation at a faster clip with more joint ventures and development management contracts likely to be seen.

Developers have moved away from their own aspirational/dream projects to more relevant and customer-oriented ones. Developers’ strategies include adopting technology to enhance efficiency, focusing on products that are generating demand, and incorporating the concept of sustainable and green buildings to consider the health and well-being aspects of the prospective buyers.

Warehousing & Light manufacturing net absorption expected to reach ~44 million sq. ft. in 2023

The warehousing & light manufacturing demand in 2022 is estimated to cross 40 million sq ft. by 2022-end surpassing the levels of 2021. Moreover, the momentum of the market is expected to continue in the next year with the net absorption projected to reach ~44 million sq. ft in 2023. The demand in Grade A space has increased contributing more than ~ 65% of the total demand in the market.

In the year 2022, there is an increased interest from institutional developers and investors in the warehousing market of India. This has led to the new supply in the market especially Grade A space.

Warehousing & Light manufacturing rents are expected to continue to increase in 2023

The year 2022 has witnessed upward rent corrections after being stable for the last three years with rental appreciation observed. The rents are expected to grow at ~4-5% y-o-y growth rate with the increasing demand from specialized manufacturing sectors, 3PL, and Retail companies that require technically specialized facilities. As the Grade A spaces are likely to be in favor by top international and domestic occupiers, the rent growth of Grade A is expected to be higher than Grade B space.

Future trends look forward to in 2023

Office:

• Institutional players account for a 30% share of upcoming supply in the next 12 months with 25-30% pre-leasing levels. ESG considerations becoming key to space decisions
• Tech will dominate as outsourcing/offshoring rises with corporate digital spending increasing. Managed workspaces to gain further momentum
• Global economic headwinds to impact leasing decisions: Some delayed decision-making as businesses look at macroeconomic signals before committing capital for new offices

Residential

• Apart from the affordable and mid-segment, the traction is expected to take place in the premium segment as well backed by launches by established developers in prime locations.
• Digital play is taking the center stage and developers are changing the marketing strategy by giving more focus on digital interplay with close support from CRM, digital, and technology teams.
•  

Warehousing & Light manufacturing

• The increasing expansion needs to be steered by light manufacturing, retail and 3PL players have led to the development of Grade A warehouses in Tier II and III cities. This is due to the demographic dividends, increased internet penetration (push for Digital India), rising levels of disposable income, and a higher standard of living.
• Some Tier II & III warehousing clusters are seeing good traction driven by the existing large-scale industrial activities, proposed industrial and freight corridors, better infrastructure connectivity, high agricultural produce and aspiring young generations, will emerge as strong markets.
• Urban Logistics to gain importance with growth for in-city warehouse space for faster deliveries to end users with growth in 3PL and e-commerce segment. 3PL is penetrating deep inside the cities in the busiest commercial, retail, and residential areas. Constrained supply is also driving re-positioning / usage change of existing assets like malls, high-street retail, marriage halls, auditoriums, showrooms & workshops.

Also Read: Net absorption in office space up 11% Q-o-Q at 9.86 million sqft

The post The India growth story: Office, Residential, and warehousing sectors outperform the industry appeared first on Square Feat India.