Best Real Estate Stocks in January 2025 – Based on 5Y CAGR; Includes Brigade Enterprises, Prestige Estates

The real estate sector is globally recognised and consists of four sub-sectors: housing, retail, hospitality, and commercial. The construction industry ranks third among 14 major sectors in terms of direct, indirect, and induced effects across all sectors of the economy.

In India, the real estate sector is the 2nd largest employment generator, after agriculture. It is also expected to attract more non-resident Indian (NRI) investment, both in the short and long term. By 2040, the real estate market is projected to grow to ₹65,000 crore (US$ 9.30 billion) from ₹12,000 crore (US$ 1.72 billion) in 2019. The sector is expected to reach a market size of US$ 1 trillion by 2030, up from US$ 200 billion in 2021. In this article, check the best real estate stocks in January 2025 based on 5Y CAGR.

Best Real Estate Stocks in January 2025 – Based on 5Y CAGR

Note: The list of stocks in the real estate sector has been picked from the Nifty 500 universe and sorted based on 5Y CAGR. The list is as of January 7, 2025.

Overview of the Best Real Estate Stocks in January 2025

1. Anant Raj Ltd

Anant Raj Ltd was incorporated in 1985 as Anant Raj Clay Products by Ashok Sarin. It is primarily engaged in the development and construction of IT parks, hospitality projects, SEZs, office complexes, shopping malls and residential projects in the State of Delhi, Haryana, Andhra Pradesh, Rajasthan and NCR. The company’s revenue from operations for H1 FY25 reached ₹1,005 crore, marking an 82% YoY increase. Profit After Tax for H1 FY25 surged 110% YoY to ₹197 crore.

Key Metrics:

• Return on Equity (ROE): 7.98%
• Return on Capital Employed (ROCE): 8.02%

2. Valor Estate Ltd

Valor Estate is involved mainly in the business of real estate construction, development and other related activities. The company’s revenue from operations for Q2 FY25 reached ₹79.1 crore, up from ₹68.0 in Q2 FY24. PAT for Q2 FY25 declined to -₹111.2 crore, from ₹893.7 in Q2 FY24.

Key Metrics:

• ROE: 36.20%
• ROCE: 20.42%

3. Brigade Enterprises Ltd

Brigade Enterprises is a real estate developer in South India, based in Bengaluru. The company is expanding its area of operations in other parts of the country. The company’s revenue from operations for H1 FY25 reached ₹22,515 million, marking an 8% YoY increase. PAT for H1 FY25 surged 46% YoY to ₹1,956 million.

Key Metrics:

• ROE: 13.48%
• ROCE: 12.01%

4. Prestige Estates Projects Ltd

Prestige Estate Projects operates a diversified business model across multiple segments, including Residential, Office, Retail, Hospitality, Property Management, and Warehousing, with a presence in over 12 key locations across India. The company’s revenue for H1 FY25 reached ₹44,483 million, which dropped 14.82% YoY. PAT for H1 FY25 dropped 55.88% YoY to ₹5,416 million.

Key Metrics:

• ROE: 12.46%
• ROCE: 18.28%

5. Oberoi Realty Ltd

Oberoi Realty Ltd is a real estate development company, headquartered in Mumbai. It is part of Oberoi Realty Group. The company’s consolidated revenue for H1 FY25 stands at ₹2,800.57 crores, compared to ₹2,177.36 crores for H1 FY24. The consolidated profit after tax for H1 FY25 is ₹1,173.71 crores, up from ₹777.45 crores in H1 FY24.

Key Metrics:

• ROE: 14.79%
• ROCE: 16.47%

Real Estate Sector Growth in India

In FY23, India’s residential property market saw a record-high home sales value of ₹3.47 lakh crore (US$ 42 billion), reflecting a strong 48% year-on-year growth. The sector is expected to reach a market size of US$ 1 trillion by 2030, up from US$ 200 billion in 2021. By 2040, the real estate market in India is projected to grow to ₹65,000 crore (US$ 9.30 billion) from ₹12,000 crore (US$ 1.72 billion) in 2019.

India’s real estate sector is anticipated to expand to US$ 5.8 trillion by 2047, contributing 15.5% to the GDP, up from its current share of 7.3%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.