Should You Buy Indian Real Estate Stocks In 2024?

India’s real estate business is set to grow. For example, the sale of luxury homes in India had increased by 130% in the first half of 2023 when compared to the corresponding period of 2022. The Indian real estate sector witnessed private equity investments of roughly US$ 1.92 billion in Q2 of FY 2023. 

India’s real estate is composed of the housing, retail, hospitality and commercial sectors. Post-lockdown, the industry has recovered some of the lost ground, boosted by solid demand. Therefore, the growth of this sector is well complemented by the growth in India’s corporate environment as well as urban and semi-urban accommodation.

Overview of the Real Estate Sector in India

Let us look at certain data points that show the potential of the sector.

By 2040, the real estate industry might surpass ₹65,000 crore from ₹12,000 crore in 2019. The industry is expected to grow beyond USD 1 trillion in 2030 by market size, up from USD 200 billion in 2021, whereby it will contribute roughly 13% of the GDP.  

Real estate is one of the oldest sectors in India and receives more than 65% of the total invested wealth. The unorganised sector and independent players largely dominate this industry. Organised real estate companies own less than 20% market share in large cities.

Which Real Estate Stocks to Buy in 2024? 

In the past two decades, several new companies have come up, while many of the major existing players have surged ahead as well, strengthening the industry. The following are the companies with the largest market capitalisation in the real estate sector in 2024.

• DLF Ltd

They are one of the leading players in the real estate segment. They are also India’s oldest real estate developer, with around 75 years of market presence and over 150 finished projects under its belt. It operates both in the retail as well as commercial real estate development spheres. 

• Macrotech Developers

Macrotech Developers Ltd, earlier known as Lodha Developers Litd, was incorporated on September 25, 1995. The Lodha Group is among the largest real estate developers in India. It has been involved in the real estate business since the 1980s. Being an Indian multinational real estate company, it is headquartered in Mumbai, India. Over the years, the company has developed residential and commercial properties in Mumbai, Thane, Hyderabad, Pune and London.

• Godrej Property

Next on the list is Godrej Property. Godrej Property is the real estate wing of the Godrej Group that began its journey in 1897. The company mainly focuses on developing residential properties, mostly in the north and west parts of India. 

• Oberoi Realty

This Mumbai-based real estate development company offers a diversified product portfolio in residential real estate, retail, office space, hospitality, and social infrastructure verticals. They have over 40 completed projects in Mumbai and more coming up in Thane, Borivali, and Gurgaon. 

Top Real Estate Sector Stocks 2024

The following are some of the top real estate sector stocks in terms of growth trajectory:

Note: All figures taken are as of January 8, 2024. The stocks are selected as per their 5-year CAGR.

Conclusion 

The above predictions of India’s real estate market show that it is one of the desirable sectors to put your money into for long-term investment purposes. You can use the above list of top real estate stocks to buy in 2024 as a starting point in your research. But we recommend that you research the stocks yourself before investing.  

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Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.