Real estate shares have declined लगातार since November last year, with the Nifty Realty Index recording a fall of करीब 30% during this period. The decline has raised concern among investors who have exposure to property stocks. Between 2020 and 2024, the real estate sector witnessed significant gains, delivering returns to investors as the Indian property market strengthened after the COVID-19 pandemic, with property prices rising across several cities.
By 2025, conditions changed. Property prices have remained stable, while real estate shares have continued to decline. According to experts, the primary reasons include profit booking by investors and technical factors in the market.
Ambareesh Baliga said that the gains seen in real estate shares over the past few years enabled investors to generate substantial wealth, prompting profit booking and resulting in selling pressure. He added that the infrastructure boom has shifted investment focus toward new assets and rural areas.
Experts stated that the decline in the real estate sector does not indicate any abnormal situation and reflects normal market movement and investor strategy.
From a technical perspective, Sachin Gupta said that the real estate index recorded a 16% decline last year and weakness continued in the early weeks of this year. Charts indicate a fall of करीब 50% since November. The index tested immediate support around 661 and witnessed a mild pullback from that level.
Experts estimate that the index may test levels of 730 to 750 in the coming weeks. However, the long-term trend remains weak, and investors are advised to remain cautious.
Ambareesh Baliga said that following the correction, valuations in real estate shares have reached decent levels. While stocks are not fully undervalued, current prices have become attractive. He stated that if an investor buys stocks at current levels, there is a possibility of a rebound within 12 months.
Experts indicated that the current phase may present an opportunity for long-term investors, as a recovery in the market could result in returns.
Experts identified select real estate stocks as suitable for buying. Godrej Properties is currently witnessing a pullback move, with immediate support around Rs 1,475 and potential upside levels of Rs 1,850 to Rs 1,900. Oberoi Realty also presents an investment opportunity, with immediate support at Rs 1,390 and potential upside levels of Rs 1,580 to Rs 1,600. Experts said that strict stop-loss discipline is necessary while investing in these stocks.
Ambareesh Baliga added that developments in the IT sector, including AI and job-related risks, may exert pressure on real estate. In IT hubs such as Bengaluru, construction and rental demand could be affected, which may impact property prices. He said investors should exercise additional caution in such locations and factor these risks into their investment strategy.
