DLF, Oberoi Realty Are Morgan Stanley's Real Estate Stock Picks On Outperformance Hopes

India's property market is showing signs of strong performance, with leading players such as DLF Ltd. and Oberoi Realty Ltd. expected to report robust growth in pre-sales for the third quarter of financial year 2025, according to Morgan Stanley. The report highlights significant sales momentum driven by new launches, positioning these companies to outperform their peers in the upcoming quarter.

For the quarter ended December 2024, Morgan Stanley forecasts a notable 20–35% sequential growth in the last twelve months sales for DLF and Oberoi. This is driven by strategic property launches, including DLF's Dahlia project and Oberoi's 360W development, both of which have exceeded market expectations. DLF, for instance, is expected to see a surge in sales with its Dahlia launch, which has contributed significantly to the anticipated 60% year-on-year growth for the company in financial year 2025.

The brokerage further notes that these positive results from DLF and Oberoi could signal an overall 26% growth for the Indian residential property sector in financial year 2025, after a substantial 39% growth in Financial year 2024. This would mark a continued upward trajectory for the industry, despite challenges such as a high base effect in the previous year.

However, not all companies are set to show such positive results. Prestige Group's pre-sales for the first nine months of financial year 2025 have underperformed expectations, with the company only reporting Rs 10,800 crore in sales, well below market projections. The company is expected to see just 2% growth for the full financial year, with limited improvement in the final quarter.

In contrast, Lodha Group and Godrej Properties are expected to meet sales expectations with Rs 4,100 crore and Rs 5,300 crore in pre-sales, respectively, in line with analysts' forecasts.

Overall, the outlook for India's real estate sector in financial year 2025 remains strong, particularly for top players like DLF and Oberoi, who are expected to lead the charge in terms of sales growth.