The union budget 2025 introduced a number of reforms. Some of them were specifically focused on the real estate sector. And these reforms were considered favourable for the real estate sector. This could be seen in the rising prices of listed real estate development companies.
This blog highlights the reforms introduced in the 2025 budget for the real estate sector and some real estate stocks that could benefit from the budget.
Budget reforms: Real estate sector
The 2025 Budget introduced some positive reforms for the real estate sector. This will open opportunities in investing in real estate and real estate stocks.
- ₹1,00,000 crores are allocated to India Infrastructure Fund and India Urban challenge fund. This is aimed at real estate development and enhancement of urban infrastructure.
- Tax reliefs are also provided in the form of raising the minimum taxable slab to ₹12,00,000 will increase the disposable income with the public that can potentially increase the inflows in the real estate sector.
- The budget introduced a new rule where homeowners have been relieved on any taxes if they own a second home that is not rented out, earlier a notional rent was calculated and taxed on the second home even if it were not rented out.
- ₹10,000 allocated for startups is expected to give a boost to coworking and office space demand.
Market participants believe that these reforms are set to give a boost to real estate in the long term. Investors can participate in real estate by buying physical real estate, real estate sector stocks, Real estate investment trusts (REITs) or REIT stocks.
Also read: Your guide to real estate investment trusts
Real Estate Stocks
Let us take a look at top real estate stocks based on their market capitalization, as on 5th February 2025.
| Name of Company | Market Cap. (as on 5th Feb 2025) (₹ cr) | 1-year % return | Price to Earnings ratio | Price to Sales ratio |
| Oberoi Realty | 66,304 | 38.46% | 25.71 | 12.16 |
| Macrotech Developers | 1,28,450 | 15.77% | 51.21 | 9.46 |
| Godrej Properties | 70,700 | 3.89% | 47.66 | 16.72 |
| DLF ltd | 1,90,784 | -4.41% | 50.86 | 27.25 |
Source: Screener
DLF Ltd
DLF Limited is engaged in the business of developing real estate for commercial, as well as residential uses. It is the largest real estate developer in the country.
| Particulars | Q3FY25 (₹ Cr) | Q3FY24 (₹ Cr) | YoY change (%) |
| Revenues from Operations | 1,529 | 1,521.2 | 0.51% |
| Net Profit | 1,055 | 648 | 62.8% |
| Net Profit Margin (%) | 69.25% | 43.10% | 2615 basis points |
| EBITDA | 609 | 632 | -3.63% |
Source: DLF Limited Investor Presentation
The key highlights of the Q3FY25 results are:
- The luxury residential segment witnessed a growth CAGR of 69% from FY21 to FY24. ₹12,093 crores worth of new bookings were made in Q3FY24. The new project ‘The Dhalias’ contributed significantly to new bookings. This can significantly increase future revenues of the company.
- The company is nearing completion of 11 million square feet of new space that will contribute to rental income in the future, therefore giving a boost to revenues.
- The company has a healthy net cash position of ₹4,534 crores by the end of third quarter on the back of healthy order flows, which can increase future growth.
Also read: DLF vs Macrotech: The battle for real estate supremacy
Macrotech Developers
Macrotech Developers operate in luxury and affordable real estate segments. The company operates primarily in the Mumbai metropolitan area. The company has over 40 operating projects.
| Particulars | Q3FY25 (₹ Cr) | Q3FY24 (₹ Cr) | YoY change (%) |
| Revenues from Operations | 4,083 | 2,930.6 | 39.36% |
| Net Profit | 944.8 | 505.2 | 87.08% |
| Net Profit Margin (%) | 23.13% | 17.23% | 589 basis points |
| EBITDA | 1590 | 1080 | 47.22% |
Source: Macrotech Developers Investor Presentation
Key highlights from the Q3FY25 results are as follows:
- The company reported its best-ever quarterly pre-sales at ₹4.510 crores, which can boost the company’s future earnings.
- Macrotech also launched a project in Bangalore with a gross development value of ₹2,800 crores.
- The company reduced its net debt by ₹610 crores, which will lower its finance costs in the future.
- The company also acquired a 33 acre piece of land in Delhi NCR region, for industrial and warehousing purposes, that can boost future revenues.
Also read: Real estate investing for beginners
Godrej Properties
Godrej Properties is the flagship real estate company of the Godrej group. It has been in existence since 1897. The company was the largest real estate developer in terms of booking value in FY24.
| Particulars | Q3FY25 (₹ Cr) | Q3FY24 (₹ Cr) | YoY change (%) |
| Revenues from Operations | 1,222 | 524 | 133.59% |
| Net Profit | 163 | 62 | 162.90% |
| Net Profit Margin (%) | 13.33% | 11.83% | 150 basis points |
| EBITDA | 280 | 152 | 84.21% |
Source: Godrej Properties Investor presentation
Key highlights from the Q3FY25 results are:
- The saw bookings of ₹5,446 crores. This was the 6th quarter where the new booking exceeded ₹5,000 crores. This can help in boosting future revenues.
- For its expansion plans the company raised ₹6,000 crores through Qualified Institutional Placements (QIPs), this can increase revenues in the future.
- The company also launched 7 new projects in 4 Indian cities, potentially bringing in revenues in the future.
Oberoi Realty
Oberoi Realty is involved in the business of developing luxury real estate. The company develops residential, office, hospitality, retail, etc, properties. This company operates the Oberoi hotel chain.
| Particulars | Q3FY25 (₹ Cr) | Q3FY24 (₹ Cr) | YoY change (%) |
| Revenues from Operations | 1,411.08 | 1,053.64 | 33.93% |
| Net Profit | 618.38 | 360 | 71.22% |
| Net Profit Margin (%) | 43.82% | 55.94% | -1212 basis points |
| EBITDA | 856 | 509.5 | 69.02% |
Source: Oberoi Realty Investor Presentation
Key highlights for the company:
- The company launched a luxury project in October 2024 in Thane which achieved ₹1,348 crores in booking in the first three days.
- The company will develop a luxury hotel and villa in Alibaug, Maharashtra, on a piece of 81.05 acres of land that will bring significant revenues in the future.
- The total deal pipeline for the company stands at over ₹1,00,000 crores, which can bring significant revenues in the future.
Peer Analysis
| Name of Company | Market Capitalization | 1-year % return | Price to Book Ratio | Good/Bad | Dividend Yield | Good/Bad |
| Oberoi Realty | 66,304 | 38.46% | 4.49 | 👎 | 0.44% | 👎 |
| Macrotech Developers | 1,28,450 | 15.77% | 7.07 | 👍 | 0.17% | 👎 |
| Godrej Properties | 70,700 | 3.89% | 6.40 | 👎 | 0.00% | 👎 |
| DLF ltd | 1,90,784 | -4.41% | 4.77 | 👎 | 0.65% | 👍 |
Source: Screener
Also read: Is real estate growth in India sustainable? Opportunities vs Challenges!
Bottomline
The real estate sector is set to benefit from the policies of the government in the long term. Investors can choose to invest in real estate through real estate developer stocks, Real estate invest trusts (REIT) or REIT stocks. Investors must carefully analyze companies in this sector and choose investments only after thorough research. Also remember that investing in real estate stocks can be risky. So, understanding the risk associated with your investment is also necessary.
