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Real Estate steady in Q2 despite few headwinds; Companies slated to achieve FY26 guidance

ICICIdirect Research 10 Oct 2025 DISCLAIMER

Indian real estate industry remained steady in Q2FY26, with total residential sales across top 8 cities increasing by 1% YoY (as per Knight Frank), despite absence of major launches by key listed developers, extended Monsoons and inauspicious time periods. Chennai saw highest sales growth of 12% YoY while Pune remained the outlier with 8% YoY decline. New launches declined by 2% YoY (Mumbai and NCR declined 19% YoY while Chennai and Bengaluru saw 44% YoY and 28% YoY growth). Prices rose across all major markets with NCR leading with 19% YoY rise, followed by Bengaluru (+15% YoY), Hyderabad (+13% YoY) and Mumbai (+7% YoY).
The operational updates announced by few realty companies till date highlight companies’ confidence in achieving their FY26 sales booking and business development guidance. While key risks in terms of domestic IT sector headwinds, sharp price appreciations over trailing two years continue to loom. On the positive front, GCC led office demand continue to rise, consumption led retail leasing see uptick and anticipation of festive led housing demand boost stays intact.  


Key operational updates for Q2FY26
Prestige Estates - Sales of ₹ 6017.3 crore, up 50% YoY, during Q2FY26. Sales volume was up 47% YoY at 4.42 msf. The average realization for apartments rose 8% YoY, while plots saw a sharp 43% increase. For H1FY26, sales were up 157% YoY at ₹ 18,143.7 crore. The average realization for apartments was up 6% YoY, while plots was up 17% YoY.
Lodha Developers - Pre-sales of ₹ 4570 crore (up 7% YoY) in Q2FY26, despite limited launches. It has significant launches in H2 and is on track to meet its FY26 pre-sales guidance of ₹ 21,000 crore. In Q2FY26, it added GDV of ₹ 2300 crore in MMR (full year guidance of ₹ 25,000 crore achieved in H1 itself).
Keystone Realtors - Pre-Sales of ₹ 763 crore (up 9% YoY) in Q2FY26 (₹ 1831 crore for H1FY26, up 40% YoY, 46% of FY26 guidance achieved in H1). In H1FY26, it added an estimated GDV of ₹ 7727 crore surpassing FY26 business development guidance.

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