India’s housing market isn’t slowing down despite concerns around IT sector job losses and tariff-related uncertainties. On the contrary, it’s shifting into a higher gear. This is according to a report by international brokerage house, Nomura. Real estate developers posted a sharp 50% jump in pre-sales in the Q2 (July-September), signalling that demand for homes remains strong even in a seasonally weak period. Nomura now believes the momentum could set the stage for an even stronger FY27 cycle.
Nomura sees “healthy resilience” going forward, supported by strong collections, upcoming launches and comfortable balance sheets. “The market will start pricing in FY27F growth, post the 3QFY26 earnings, where early signs show good demand traction for projects,” the report said.
Nomura on real estate: Demand stays strong despite seasonal slowdown
Nomura noted that cumulative pre-sales for the six companies under its coverage(Godrej Properties, Prestige Estates, Lodha Developers, DLF, Oberoi Realty, Aditya Birla Real Estate) rose 50% year-on-year, even though the Q2 (July-September) is usually a slow period for residential launches and sales.
Nomura on real estate: FY26 guidance stays intact
Most real estate developers maintained their FY26 pre-sales guidance except Oberoi Realty and ABREL, which do not provide FY26 guidance.
According to Nomura, developers continue to face more supply constraints than demand challenges. Lodha reiterated this point, saying branded players “are not demand-constrained”.
The report also noted that some developers still need to achieve a significant portion of their full-year targets in the second half, particularly Lodha, Oberoi Realty and ABREL. The brokerage said all three expect “strong seasonality” in 2HFY26 due to a robust pipeline of new project launches.
Nomura on real estate: Realty majors step up BD activity
Developers continued to add new land parcels and projects during the quarter. Prestige Estates led with Rs 12,000 crore in business development additions. Lodha achieved 100% of its FY26 BD guidance, while Godrej Properties completed 81% of its annual target.
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Nomura expects this uptick in business development to support pre-sales growth in FY27.
Nomura on real estate: Collections rise 20% YoY as execution improves
Collections for the top eight developers rose 20% year-on-year in Q2FY26. Prestige Estates and Sobha posted the strongest numbers, while Godrej Properties and ABREL reported softer collections but expect improvement in the second half.
Collections stood at 73% of pre-sales during the quarter, which Nomura said signals healthy cash inflows for the sector.
Nomura on real estate: Commercial and retail rentals pick up pace
Commercial annuity assets posted strong growth during the quarter. DLF’s joint venture DCCDL reported a 15% year-on-year increase in annuity income. Oberoi Realty’s rental income jumped 43%, supported by strong demand for its Commerz III office asset and the newly launched Sky City Mall.
Prestige Estates is targeting exit rentals of Rs 3,300 crore by FY28, while Lodha plans to build a meaningful annuity portfolio, including data-centre infrastructure, with a rental target of Rs 1500 crore by FY31.
