Realty Index Jumps on Q1 Pre-Sales Optimism; Prestige and Sobha Lead Gains

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Posted by AI on 2025-07-17 16:29:43 | Last Updated by AI on 2026-09-26 23:14:26

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The Indian realty index jumped 4% on optimistic pre-sales figures for Q1, with Prestige Group and Sobha Limited leading the gains.

The Nifty Realty index continued its upward momentum for a fourth straight session on July 17. The index rose 3.76 percent to 269.45, its highest since March 2022, buoyed by optimism surrounding pre-sales figures for the June quarter.

Prestige Group and Sobha Limited were the leading gainers, up over 5% each. All but two of the 19 stocks in the index rose, with most rebounding to their highest since the Russia-Ukraine war rattled markets in February.

The optimism is based on projections of a robust pre-sales number for the June quarter, driven by strong execution and an improvement in the demand environment, despite the impact of the war and the general election.

The upbeat mood comes despite worries over inflation and borrowing costs, and the impact of a potential recession on the highly leveraged real estate sector.

"The sharp rally in the last four sessions is primarily led by momentum traders and optimistic investors hoping for continuation of the strong showing by the developers in the June quarter," said Hetal Benjamin, Portfolio Manager, Investment Manager, at Benalkisor Capital.

"While the sector is showing signs of a turnaround, it is still not out of the woods yet, as the overall economic environment remains challenging," she added.

Still, the latest gains have propelled the index to its highest level since March, when it began a sharp decline, sinking to a five-year low in June as investors fretted over the impact of the war and high interest rates on the highly leveraged sector.

The latest optimism could be a much-needed shot in the arm for the sector, with analysts saying that the June quarter may see a reversal in the sales growth momentum, primarily led by affordable housing.

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