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Real Estate- Weak presales amid absence/deferment of launches, FY27 guidance retained

ICICIdirect Research 07 Aug 2026 DISCLAIMER

Synopsis - Realty companies under our coverage reported weak Q1FY27 pre-sales majorly led by fewer to nil new project launches although sustenance sales velocity remained steady. Collections saw upto mid-single digit growth YoY for most companies. Companies maintained their pre-sales guidance for FY27 led by launch heavy H2FY27 period.
Pan-India residential sales (Top 7 cities) weak – In Q1FY27, residential sales have declined across top 7 cities (down 6% YoY, down 11% QoQ). Launches were up 7% YoY (down 16% QoQ). Average prices were up 7% YoY while inventory overhang increased marginally to 19 months from 18 months in Q4FY26.
Commercial steady growth - Commercial portfolios continued to maintain high occupancy and healthy rental income growth. DLF’s rental revenues were up 10% YoY with industry leading 95% occupancy levels. Phoenix’s office income grew 44% YoY.
Retail consumption stayed high - Retail consumption maintained its high growth trajectory during Q1FY27. Phoenix Mills reported 32% YoY growth in consumption and 17% YoY growth in retail income.    
Geographic mix: Bengaluru (sales up 1% YoY) and Hyderabad (sales up 2% YoY) outperformed other regions. NCR was the laggard with sharpest dip in launches (down 40% YoY, down 30% QoQ). Mumbai stayed resilient (property registrations in Mumbai were up ~11% YoY in Q1FY27).
Q1FY27 company-wise presales – DLF reported sharpest fall in pre-sales (down 94% YoY) followed by Presitge Estates (down 46% YoY), Keystone (down 42% YoY) and Oberoi (down 36% YoY). Godrej Properties (up 22% YoY), Mahindra Lifespaces (up 106% YoY) and Lodha (up 4% YoY) were outliers. Companies associated weak pre-sales print to absence of launches and deferment due to approvals rather than weak demand (sustenance sales stayed healthy).
New Business development continued – New project additions continued during Q1FY27 highlighting developers confidence to build future sales pipeline. Godrej Properties added ₹ 9500 crore GDV projects, Keystone added ₹ 547 crore, DLF spent ₹ 545 crore towards advances for land acquisitions.
Guidance retained – All the companies retained their FY27 pre-sales guidance (Godrej - ₹ 39000 crore, Lodha - ₹ 24000 crore, DLF - ₹ 20000 crore, Keystone - ₹ 4500-5000 crore, Mahindra Lifespace - ₹ 4500-5000 crore, Phoenix Mills – mid-teens rental income growth).       
Preferred picks – We prefer DLF, Brigade Enterprises, Phoenix Mills, Oberoi realty, Keystone Realtors.

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