Strong housing demand to accelerate new launches in H2 FY27

Strong housing demand and healthy sales in the Sept 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% year-on-year during July-Sept 2026, while sales by area increased at a slower pace of around 6-8%, 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% year-on-year during the quarter, while the number of apartments sold remained largely flat over the past three months.

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% 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 ₹120 billion in the December quarter, representing growth of around 50% year-on-year.

Lodha is planning launches worth ₹191 billion in the second half, compared with ₹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.

At the broader market level, residential sales by area in the top seven cities are estimated to have grown around 6% in the year so far, while sales value increased around 12%.

The National Capital Region and Mumbai Metropolitan Region recorded volume growth of more than 10% 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