You are spot on if you are contemplating getting your hands on the best real estate stocks in India. With the increased disposable income, the real estate industry has seen sustainable and exponential growth.
Also read: Nifty surges after BJP’s Mahayuti victory in Maharashtra
Real estate industry in India
The real estate sector in India is the second biggest employment creator. The real estate industry in India is projected to reach ₹65,000 crore by 2040. The growth of real estate sectors is proportional to the growth of other sectors. With the growth of Indian industries, the real estate industry has been affected in two ways-
- The rise in demand for corporate office spaces is related to the increase in corporate real estate.
- Increased disposable income resulting in rising demand for personal properties.
The industry is also expected to witness a great influx of foreign investment.
Best real estate stocks in India
Take a look at the best real estate stocks in India based on market capitalisation.
DLF Ltd.
DLF handles their projects end to end, from identification and acquisition of plots to construction, marketing and sale of properties. It is the best real estate stock based on market capitalisation.
In 2024, the company came out with its luxury project DLF Privana West. The pros and cons of the stock are listed below.
Boasting over 75 years of experience, DLF Limited constitutes one of the biggest domestic real estate developers. As of December 2023, the firm had developed about 340 square meters of space. It is recognized for creating one of Asia’s biggest private townships, DLF City, in Gurgaon, Haryana, along with other widely-known metropolitan communities in Delhi, such as South Extension, Greater Kailash, Kailash Colony, and Hauz Khas.
Macrotech Developers Ltd
The company was incorporated in the 1980s. It is the biggest real estate developer. The company has approximately 40 functioning projects. 60% of revenue is derived from the middle-income segment.
Godrej Properties Limited
Godrej has won approximately 400 awards in the last 5 years. The company has the least bank funding (5.95%) due to its very strong financial health. The company is the biggest in the Indian real estate industry based on the number of homes sold by it.
Also read: Fast Growing Companies to Watch in India
Prestige Estates Project Ltd
The company operates across twelve major locations. The company has diversified across various segments, like residential, corporations, retail, hospitality, property management and warehouse.
Oberoi Realty Ltd
The company focuses on projects in the corporate, residential, retail, hospitality, and social infrastructure sectors. The company has its headquarters in Mumbai.
The company primarily operates in the Mumbai Metropolitan Region. It is also trying to enter the real estate markets in Bangalore and NCR.
Stock comparisons
| Name | P/E | Mar Cap(₹ Cr.) | Div Yield (%) | NP Qtr (₹ Cr.) | Qtr Profit Var (%) | Sales Qtr (₹ Cr.) | Qtr Sales Var (%) | ROCE (%) |
| DLF Ltd. | 56.03 | 201589.34 | 0.61 | 1381.22 | 122.08 | 1975.02 | 46.55 | 5.74 |
| Macrotech Developers Ltd. | 60.07 | 129028.50 | 0.18 | 423.10 | 109.46 | 2625.70 | 50.07 | 11.06 |
| Godrej Properties Ltd. | 56.86 | 78777.82 | 0.00 | 333.79 | 399.69 | 1093.23 | 218.73 | 5.74 |
| Oberoi Realty Ltd. | 31.57 | 73331.29 | 0.40 | 589.44 | 29.05 | 1319.89 | 8.42 | 15.24 |
| Prestige Estates Project Ltd. | 106.22 | 72362.64 | 0.11 | 234.60 | -77.41 | 2304.40 | 3.04 | 14.86 |
- Godrej Properties Ltd is the only company amongst the best real estate stocks in India that has paid 0% dividends.
- Amongst the top 5 real estate stocks Godrej Properties Ltd has the highest Quarterly Profit Var% (399.69), whereas Prestige Estates has the lowest (-77.41).
- DLF has the highest quarterly net profit (1381.22 Cr). Macrotech has the highest quarterly sales (2625.70 Cr).
- Oberoi has the highest ROCE% (15.24).
- Prestige (106.22) has the highest PE ratio, which can either indicate over-valuation or a robust company image and resultant investor confidence. Prestige is followed by Macrotech (60.07) and then by a very close margin Godrej (56.86). It might be helpful for the investors to notice that the gap between Prestige and its other two competitors is quite high, though it is not a top performer in most other parameters.
Also read: List of FMCG Stocks in India 2024
Bottomline
The growing economy has resulted in people having greater purchasing power resulting in higher demand for property. Moreover, the growing startup landscape has also given space for corporate office spaces. The sector requires great investment along with a long gestation period, so investors need to be patient.
FAQs
What are the best real estate stocks to buy?
The best real estate stocks in India based on market capitalisation are Godrej Properties Limited, Oberoi Realty Limited, Prestige Estate Projects Limited, Macrotech Developer Limited and DLF Limited.
The roaring growth of the Indian real estate market can be forecasted to directly impact these companies.
What are the top five largest REITS in India?
Real Estate Investment Trusts work like mutual funds. Investors pool their money that is invested in office spaces. The rental income derived is distributed among the investors. The four largest REITS in India are
- Nexus Select Trust,
- Mindspace Business Parks,
- Embassy Office Parks and
- Brookfield India Real Estate Trust
What are the top 3 stocks to buy right now?
India is gearing up to become the third-largest economy. The capital markets are performing stronger than ever before. Let us take a look at the industries that are expected to yield strong results in upcoming years.
- Healthcare and insurance industry
- Renewable energy sector
- Information technology sector
- Real estate sector
- FMCG
- Automobile sector
What are the top 3 stocks to buy right now in India?
The industries in India which are predicted to witness a good future are Information technology, real estate, Fast Moving Consumer Goods, healthcare, etc.
The top three stocks based on Market capitalisation are DLF Limited, Macrotech Developers Limited and Godrej Properties Limited
However, investment in real estate requires considerable patience due to the long gestation period.
Who is the NO. 1 share market king in India?
Known as the Warren Buffet of India, Rakesh Jhunjhunwala is a high-networth individual who made his name and wealth through share market investment. His net worth is approximately Rs. 44,550 Cr. He is also famous with names like the Big Bull and Share Market King.
