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Strong housing demand and healthy sales in the September quarter are expected to encourage real estate developers to accelerate project launches in the second half of the current financial year, with major companies preparing a larger pipeline of projects across key cities, according to a report by Jefferies.
The report mentioned that the residential property sales value across India's top seven cities is estimated to have grown around 17-20 per cent year-on-year during July-September 2026, while sales by area increased at a slower pace of around 6-8 per cent, data cited by Jefferies showed. The difference between value and volume growth indicates that higher property prices and better realisation per unit played an important role in the increase in sales value. Blended price realisation rose around 10 per cent year-on-year during the quarter, while the number of apartments sold remained largely flat over the past three months. Despite healthy sales, new launches remained largely flat year-on-year by area, partly due to a delay in the festive season in September. However, developers are expected to step up launches from the December quarter as strong sales of existing projects have helped reduce inventory. Jefferies said, "Sustenance sales have been very strong, lowering inventory, and launch momentum is strong from the December quarter onward." The report expects major listed developers, including DLF, Godrej Properties, Lodha and Prestige Estates, to report sales growth of more than 20 per cent in the second half of FY27, following relatively subdued performance in the first half. Godrej Properties is expected to double its launch pipeline in the second half and is estimated to record pre-sales of more than Rs 120 billion in the December quarter, representing growth of around 50 per cent year-on-year. Lodha is planning launches worth Rs 191 billion in the second half, compared with Rs 41 billion in the first half, while Prestige Estates is expected to have a strong launch pipeline in the National Capital Region and Mumbai region during the December quarter and early fourth quarter. DLF is also progressing with its Mumbai Phase-2 project and the experience centre for its luxury housing project. At the broader market level, residential sales by area in the top seven cities are estimated to have grown around 6 per cent in the year so far, while sales value increased around 12 per cent. The National Capital Region and Mumbai Metropolitan Region recorded volume growth of more than 10 per cent during the September quarter, while Bengaluru remained largely flat. Meanwhile, the overall residential inventory level stood at around 18 months based on the last 12 months of sales, in line with the five-year average. Jefferies said the combination of healthy demand, lower inventory and a strong upcoming launch pipeline could support the residential real estate sector's performance in the second half of FY27. (ANI)
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