Global brokerage firm HSBC has a ‘Buy’ rating on Godrej Properties, DLF, and Sobha, and a ‘Hold’ rating on Oberoi Realty.
The foreign brokerage, in its note on the real estate sector, said it expects a revival in new launches in FY26, supported by sustained pre-sales momentum, although off a high base.
According to the brokerage, healthy unsold inventory levels, manageable leverage, and strong free cash flow momentum will be key drivers for these stocks.
| Stocks | Ratings | TP/Upside |
| DLF | Buy | ₹920 (+14.5%) |
| Godrej Properties | Buy | ₹3,500 (+54.6%) |
| Oberoi Realty | Hold | ₹1,790 (+0.7%) |
| Sobha Developers | Buy | ₹1,850 (+22.0%) |
On June 6, shares of real estate companies rallied following the Reserve Bank of India’s (RBI) 50 basis points repo rate cut. This marks the third consecutive rate cut by the central bank, following reductions in February and April.
The Nifty Realty index settled 4.68% higher, extending its gains for the second straight session.
The rally in real estate stocks was also seen after the RBI slashed its Cash Reserve Ratio (CRR) by 100 basis points. The cut in CRR will release up to ₹2.5 lakh crore liquidity in the system and reduce the cost of funding for banks.
Property consultancy Anarock termed the simultaneous repo and CRR cuts a “double boost” for affordable housing, especially amid ongoing global economic headwinds. The reduction in the repo rate is expected to spur demand in the Indian real estate sector, particularly within the affordable and mid-income segments. It will also lower borrowing costs for developers.
The CRR cut, on the other hand, increases liquidity in the system, which should enhance developers’ access to capital, potentially speeding up project completion timelines.
Additionally, banks now have greater room to reduce home loan interest rates, which could further uplift buyer sentiment in cost-sensitive housing segments.
However, Anarock also cautioned that the positive domestic momentum could be partly offset by global uncertainties. Trade tensions and tariffs imposed by the Trump administration have increased the cost of imported construction materials, which may affect developer margins. This, in turn, could impact demand in the luxury and commercial property categories.
Meanwhile, CLSA has identified key beneficiaries such as Sobha, Prestige Estates, Godrej Properties, and Sunteck Realty.
Additionally, real estate investment trusts (REITs) and large rental-focused players like DLF and Phoenix Mills are expected to gain from lower debt servicing costs and potential asset revaluation.
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