Godrej, DLF And...: HSBC Shares Top Realty Stock Picks, Cites Sectoral Rebound In FY26 So Far

HSBC Global Research expects India's residential real estate market to have kicked off fiscal 2026 on a strong note, led by robust pre-sales in the first quarter. The recovery, it said, has been fuelled by large project launches that had previously been delayed, setting the stage for a sharp rebound from a lacklustre fiscal 2025.

The brokerage notes that the last fiscal was a difficult year in terms of new launches, with listed developers cumulatively meeting only 87% of their launch guidance. However, they still delivered 100% of their aggregate sales guidance. Several of the previously delayed projects were finally launched in the June quarter, and according to HSBC's checks, these have seen strong buyer response.

The brokerage expects pre-sales to jump nearly 50% year-on-year across its coverage universe in the June quarter — a figure that also benefits from a lower base in the same quarter of the preceding fiscal.

HSBC maintains its 'buy' ratings on:

• Godrej Properties for its decentralised and diversified model

• DLF for its strong brand and balance sheet

• Sobha for its turnaround potential

It retains a 'hold' rating on Oberoi Realty, citing limited project exposure and current valuations.

Key risks to this outlook include geopolitical uncertainties, weakness in financial markets, a slowdown in economic growth, and regulatory approval delays.

DLF launched Privana North in Gurugram, generating pre-sales worth Rs 11,000 crore, accounting for nearly half of its full-year guidance.

Oberoi Realty launched Elysian Tower D in Goregaon, clocking bookings of Rs 970 crore.

Prestige Estates recorded pre-sales of Rs 3,000 billion within a week of launching its Indirapuram project, and reported an instant sellout of its Gardenia Estate in Devanahalli.

Godrej Properties registered bookings of over Rs 2,000 billion from the newly launched MSR City in Bangalore.

HSBC reiterates that while headline residential demand may be softening overall, demand remains resilient in the premium and large apartment segment, a key market focus for its covered developers. The brokerage also points out that unsold inventory levels remain low at 15–18 months.

In earlier reports, HSBC had highlighted that fiscal 2026 would likely see a pick-up in launches and continued sales momentum. Many listed developers, it notes, have strong balance sheets and unsold inventory of less than a year—putting them in a favourable position on pricing and project execution. Previous years' strong pre-sales are also expected to drive collections going forward, further bolstering growth.