India’s real estate market in 2025 is witnessing steady growth due to multiple economic and policy factors. Government initiatives such as the Pradhan Mantri Awas Yojana (PMAY) and metro expansion across cities have spurred both residential and commercial demand.
The RBI’s repo rate rates and tax reductions in the Union Budget have further bolstered demand for affordable housing and revived investor sentiment in the real estate space.
Here are a three small-cap stocks that could benefit from a growing real estate market. They can be added to your watchlist.
#1 Suraj Estate Developers
First on our list is smallcap real estate stock Suraj Estate Developers.
Suraj Estate Developers is a Mumbai-based real estate company known for its dominance in the South-Central Mumbai redevelopment, specialising in premium and luxury residential projects.
The company has over 37 years of experience, delivering 42+ completed projects and developing over 1 m sq. ft. of space concentrated in micro-markets such as Dadar, Prabhadevi, and Mahim.
Suraj Estate Developers Financial Snapshot (FY23-25)
| Rs m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 3,057 | 4,122 | 5,491 |
| Sales Growth % | 12.1 | 34.8 | 33.2 |
| Net Profit | 321 | 675 | 1,002 |
| ROCE | 36.1 | 30.8 | 16.9 |
Source: Equitymaster
The company in Q1 FY26, saw total revenues reaching Rs 1,325 million (m), a slight decrease compared to Rs 1,337 m in the same period last year. Net profits dropped to Rs 213 m from Rs 301 m year-on-year.
Looking ahead, the company has entered a pivotal execution phase in 2025-26, backed by a strong launch pipeline across both residential and commercial segments.
Over Rs 20 bn of gross development value is planned for launch in 2025-26, including a marquee commercial project in Mahim and several value-luxury residential projects in Mahim and Dadar, with projects like ParkView-1, Gudekar House, and Lobo Villa progressing steadily towards launch.
The company is optimistic that a few projects previously deferred pending regulatory approvals, along with the Mahim commercial site, will be launched in 2025-26.
Suraj Estate has also acquired development rights for a small parcel of land at Shivaji Park, where it plans to develop a premium luxury project.
The combination of an asset-light model, past track record and deep micromarket knowledge will assist in delivering sustainable growth for the company.
#2 Kolte-Patil Developers
Next on our list of smallcap real estate stocks is Kolte-Patil Developers.
Kolte-Patil Developers is a leading real estate development company. The company has a strong presence primarily in Pune, Mumbai, and Bengaluru.
The company has been creating landmarks and has developed and constructed over 64 projects including residential complexes, commercial complexes and IT Parks covering a saleable area of 28 m square feet.
Kolte-Patil Developers Financial Snapshot (FY23-25)
| Rs m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 14,884 | 13,715 | 17,174 |
| Sales Growth % | 33.2 | -7.9 | 25.2 |
| Net Profit | 1,135 | -675 | 1,093 |
| ROCE | 17.2 | 2.8 | 25.6 |
Source: Equitymaster
The company reported revenues of Rs 824 m in Q1 FY26, a drop compared to Rs 3,408 m in the same period last year. It reported a loss of Rs 170 m, compared to a net profit of Rs 40 m YoY.
Moving forward, growth this year according to the Kolte-Patil management will be supported by the continued sales traction at the flagship Life Republic township. The company will complement the same by new launches and phase-wise expansions across existing projects.
The management aims to consolidate its leadership in Pune while accelerating growth momentum in Mumbai Metropolitan Region (MMR) and Bengaluru.
The strategic roadmap includes deepening its presence in the established micro-markets and selectively entering new locations within the three core geographies.
#3 Hubtown
Hubtown Limited, a prominent name in the Indian real estate sector, has a history spanning over four decades and is one of the top real estate developers in Mumbai.
The company has developed real estate projects spanning various verticals such as residential, commercial, retail, and industrial projects. It also has presence in Gujarat (Ahmedabad, Vadodara, Mehsana and Surat) and Pune.
Hubtown Financial Snapshot (FY23 to FY25)
| Rs m | FY22-23 | FY 23-24 | FY24-25 |
| Net Sales | 3,191 | 2,214 | 4,085 |
| Sales Growth % | 67.7 | -30.6 | 84.5 |
| Net Profit | 263 | -760 | 552 |
| ROCE | 6.6 | 0.00 | 8.0 |
Source: Equitymaster
The company reported revenues of Rs 1,874 m in Q1 FY26, compared to Rs 1,203 m in the same period last year. It reported a solid growth in net profits to Rs 820 m, compared to a net profit of Rs 61 m YoY.
An important aspect of the company’s financial strategy lies in its capability to secure funding from a wide spectrum of Indian and international investors. In 2024, Hubtown successfully garnered over Rs 9.4 bn through a preferential allotment of shares.
Additionally, Rare Townships Pvt. Ltd., a subsidiary of the company, obtained approximately Rs 2 bn in funding from the SWAMIH Fund.
Furthermore, Oaktree Capital, an established global credit provider, supported the group’s 25 Downtown project, where Hubtown holds a 25% equity stake.
Hubtown currently has 7.1 m sq. ft of ongoing projects under various stages of execution and a substantial land bank of over 23.1 m sq. ft, much of which is “launch ready.”
This should help sustain growth going forward.
Conclusion
India’s real estate sector is experiencing robust growth, driven by rapid urbanisation, rising incomes, government initiatives, and growing investment interest.
For companies in the sector timely execution, past track record, and prudent financial management would be the key going forward.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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