India’s real estate sector is expected to maintain its growth momentum in financial year 2026-27, with most leading developers likely to remain on track to achieve their annual pre-sales targets, according to a report by Ambit Capital.

Healthy Pre-Sales, Premium Housing Demand and Commercial Recovery Support Growth Outlook; Launch Delays Remain Key Monitorable

The brokerage believes that the sector continues to benefit from strong structural drivers, including rising urbanisation, sustained housing demand, infrastructure development and improving commercial real estate activity.

While some major developers delayed new project launches during the June quarter, existing projects continued to generate healthy sales, providing stability to overall business performance.

Ambit Capital remains positive on select developers, preferring companies with strong execution capabilities, attractive valuations and diversified business models.

Q1FY27 Pre-Sales Remain Stable Despite Lower Launch Activity

According to Ambit Capital, most real estate developers are expected to maintain their FY27 pre-sales targets despite a relatively muted launch pipeline during the first quarter.

The brokerage noted that:

Existing projects continue to attract buyers
Sustenance sales remain strong
Demand for reputed developers remains healthy

However, companies including:

Oberoi Realty
Aditya Birla Real Estate (ABREL)
DLF

did not launch major projects during Q1FY27.

This has raised expectations from these companies for stronger execution and project launches in the upcoming quarters.

Launch Pipeline Becomes Key Growth Driver

While the sector outlook remains positive, Ambit Capital highlighted that timely project launches will be critical for maintaining growth momentum.

Delayed launches could impact:

Quarterly sales growth
Revenue visibility
Inventory expansion
Achievement of annual targets

The brokerage remains cautious about further delays, although existing projects continue to provide support.

Ambit Capital’s Preferred Real Estate Stocks

Ambit Capital continues to prefer developers that offer:

Strong project pipeline
Better cash flow visibility
Premium positioning
Commercial real estate exposure

The brokerage’s preferred stocks include:

Large-Cap Picks

Prestige Estates

Lodha Developers

Mid-Cap Pick

Aditya Birla Real Estate (ABREL)

Small-Cap Pick

Max Estates

Prestige Estates: Strong Growth Visibility Through Launches

Prestige Estates remains one of Ambit Capital’s preferred choices among large-cap developers.

The brokerage expects the company to benefit from:

New residential launches
Strong project execution
Sustained customer demand

Prestige’s pre-sales are expected to reach:

₹7,500 crore

during FY27, supported by:

New project additions
Existing project momentum
Brand strength

Prestige Estates Target Price Indicates 25% Upside

Ambit Capital has maintained its positive stance on Prestige Estates.

The brokerage revised its target price to:

₹2,125 per share

from:

₹2,075 earlier

The revised target suggests:

Around 25% upside potential

from current market levels.

The brokerage believes Prestige’s diversified portfolio provides better resilience against any moderation in the housing cycle.

Lodha Developers Benefits From Premium Housing Demand

Lodha Developers remains among Ambit Capital’s preferred large-cap real estate stocks.

The company continues to benefit from:

Strong brand recognition
Premium residential demand
Presence in key metropolitan markets

India’s premium housing segment has remained resilient as buyers increasingly prefer organised developers with:

Quality construction
Timely delivery
Strong financial capability

ABREL Remains Top Pick Despite Weak Launch Activity

Aditya Birla Real Estate continues to remain Ambit Capital’s top pick despite the absence of new launches during Q1FY27.

The brokerage highlighted that ABREL has a strong development pipeline with:

₹70,000 crore Gross Development Value (GDV)

This pipeline provides significant long-term growth visibility.

However, near-term sales performance is expected to depend on:

Existing project sales
Sustenance demand
Execution of future launches

Commercial Real Estate Outlook Improves

Apart from residential developers, Ambit Capital sees improving prospects in the commercial real estate segment.

Grade-A office developers are expected to benefit from:

1. SEZ Denotification Opportunities

Changes in SEZ regulations could unlock additional commercial opportunities and improve asset utilisation.

2. Rising GCC Demand

Expansion of:

Global Capability Centres (GCCs)
Technology companies
Global businesses

is expected to support office absorption.

3. Improving Leasing Market

Better leasing activity could support:

Higher occupancy levels
Improved rental growth
Stronger commercial asset valuations

Flexible Workspace Market Continues Rapid Expansion

The flexible office segment remains one of the fastest-growing areas within commercial real estate.

Ambit Capital expects flex operators to grow:

4-5% QoQ

and:

Around 30% YoY

The brokerage’s preferred companies in the segment are:

WeWork India
Smartworks
IndiQube
Awfis

Growth drivers include:

Demand from enterprises
Hybrid work models
Expansion of startups
Need for flexible office solutions

Structural Drivers Supporting Real Estate Growth

India’s real estate sector continues to benefit from multiple long-term growth themes.

Urbanisation Driving Housing Demand

Rapid urbanisation and population growth are increasing demand for:

Residential properties
Commercial spaces
Urban infrastructure

Infrastructure Development Supporting Property Markets

Large government investments in:

Roads
Metro networks
Airports
Industrial corridors

are improving connectivity and boosting real estate demand.

Premiumisation Trend Benefits Organised Developers

Consumers are increasingly preferring branded developers due to:

Better construction quality
Transparency
Timely delivery

This trend is helping large organised players gain market share.

Key Risks for Real Estate Investors

Despite positive sector fundamentals, investors should monitor:

Interest Rate Environment

Higher borrowing costs can impact home affordability and demand.

Execution Challenges

Delays in approvals, construction or project launches can affect growth.

Market-Specific Slowdown

Certain cities or segments may experience demand moderation after strong growth.

FY27 Real Estate Outlook: Quality Developers Likely to Outperform

Ambit Capital believes the overall real estate sector outlook remains healthy, supported by structural demand drivers.

Companies with:

Strong balance sheets
Large project pipelines
Execution track record
Premium positioning

are expected to deliver better performance.

Smart Investment Real Estate Insight

The Indian real estate sector continues to remain a key beneficiary of economic growth, urbanisation and rising housing demand.

While short-term challenges such as delayed launches and interest rate movements remain important factors, the long-term opportunity remains attractive.

Smart Investment Insight: Investors should focus on developers with strong cash flows, proven execution ability and quality project pipelines. In a growing but competitive real estate market, companies that combine brand strength, financial discipline and operational efficiency are likely to create sustainable long-term value.