Are you looking for the best real estate stocks to buy? Investing in real estate in India opens up a nation poised for significant transformation. A major contributor to the country’s GDP, it is expected to grow over 82988 crores by 2030. High-end real estate is becoming increasingly popular, as seen by the stunning 130% increase in sales of luxury homes this year. The sector is expected to see a significant change, as demonstrated by the anticipated increases in organised retail real estate and significant private investments.
What are real estate stocks?
Real estate stocks signify ownership in companies that manage, own, or invest in properties. Investors acquire these stocks to gain a share of the company’s profits and benefit from potential property value appreciation. Real estate stocks are a convenient avenue for involvement in real estate without directly owning property; these equities span residential and commercial ventures. They offer a diversified investment within the dynamic real estate sector, attracting investors aiming to leverage financial gains and navigate the evolving real estate landscape.
Top 10 Real Estate Stocks to Invest in 2024
Let us explore the Best real estate stocks to buy in 2024:
- DLF Ltd
- Oberoi Realty Ltd
- Godrej Properties Ltd
- Prestige Estates Projects Ltd
- Sobha Ltd
- Phoenix Mills
- Brigade Enterprises Ltd
- Mahindra Lifespace Developers Ltd
- Sunteck Realty Ltd
- Embassy Office Parks REIT
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- 20 Lac+ unique clients
- 33+ Years of Serving
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Overview of Best Real Estate Stocks to Invest in India
DLF Ltd
DLF Ltd, a key player in Indian real estate, reported Rs. 5,721.77 Cr. operating revenue (NSE) in FY23. Despite a -2 % annual growth, the impressive 26% pre-tax margin positions it as a top REIT investment for 2024.
Oberoi Realty Ltd
Oberoi Realty Ltd, headquartered in Mumbai, excels in premium real estate projects like Oberoi Splendor. Its diverse portfolio garnered an impressive Rs. 4,718.27 Cr. operating revenue in FY23.
Godrej Properties Ltd
Godrej Properties Ltd, a Godrej Industries Ltd subsidiary, excels in crafting residential, commercial, and industrial properties, including renowned projects like The Trees and Godrej 101. The company boasts an 18% annual revenue growth.
Prestige Estates Projects Ltd
Prestige Estates, a real estate leader in South India, excels in property development, leasing, and retail. It has completed 112 office projects and crafted luxurious hotels, emphasizing high-end residences.
Sobha Ltd
Pioneering quality in India’s real estate, Sobha Ltd. emerged in 1995 under Mr. PNC Menon’s vision. With a history of excellence, its recent Rs. 3,727.25 Cr. operating revenue boasts a remarkable 21% annual growth in FY23.\
Phoenix Mills Ltd
Phoenix Mills Ltd excels in developing and managing real estate assets like shopping malls and entertainment centers. Renowned projects, Phoenix Palladium, and Phoenix Marketcity, underscore its robust pan-Indian presence.
Brigade Enterprises Ltd
Brigade Enterprises Ltd, a leading property developer, thrives in residential, commercial, and hospitality projects across cities like Bangalore and Hyderabad. With an impressive Rs. 3,683.43 Cr. operating revenue, it demonstrates a commendable 16% annual growth.
Mahindra Lifespace Developers Ltd
Established in 1994, Mahindra Lifespace Developers Ltd. embodies the Mahindra Group’s ‘Rise’ philosophy, crafting thriving residential communities and business ecosystems. The company’s development footprint spans 35.06 million sq. ft. across seven cities, and its innovative, environmentally friendly approach sets it apart.
Sunteck Realty Ltd
Mumbai-based Sunteck Realty Ltd, focusing on ultra-luxury and luxury residential segments, manages residential and commercial properties with brands like Signature and Sunteck City.
Embassy Office Parks REIT
Embassy Office Parks REIT, India’s first publicly listed and Asia’s largest REIT by area, owns and operates income-generating real estate. Complying with regulations, it distributes at least 90% of cash flows to unitholders.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Latest Performance of Top 10 Real Estate Stocks
| Company Name | CMP Rs. | Mar Cap Rs.Cr. | 1Yr return % | ROCE % | CMP / BV | Debt / Eq | ROE % | EPS 12M Rs. | P/E | Div Yld % |
| DLF Ltd | 863 | 2,13,694 | 132.26 | 4.61 | 3.07 | 0.11 | 5.47 | 9.34 | 90.0 | 0.46 |
| Oberoi Realty Ltd | 1,322 | 48,070 | 49.54 | 16.0 | 4.00 | 0.62 | 16.6 | 19.34 | 29.7 | 0.30 |
| Godrej Properties Ltd | 2,303 | 64,030 | 94.15 | 5.69 | 2.88 | 0.64 | 5.39 | 23.58 | 96.1 | 0.00 |
| Prestige Estates Projects Ltd | 1,198 | 48,017 | 185.24 | 10.3 | 2.43 | 0.50 | 7.56 | 8.50 | 28.4 | 0.13 |
| Sobha Ltd | 1,443 | 13,685 | 149.36 | 8.32 | 1.74 | 0.83 | 4.24 | 10.05 | 151 | 0.21 |
| Phoenix Mills | 2733 | 48,830 | 103.96 | 9.94 | 4.79 | 0.13 | 11.4 | 16.26 | 49.3 | 0.18 |
| Brigade Enterprises Ltd | 1,016 | 23,470 | 108.22 | 8.41 | 2.78 | 0.36 | 6.34 | 16.70 | 94.0 | 0.20 |
| Mahindra Lifespace Developers Ltd | 594 | 9,200 | 51.47 | 2.09 | 3.38 | 0.15 | 1.78 | 9.78 | 337 | 0.39 |
| Sunteck Realty Ltd | 461 | 6,757 | 41.64 | 2.56 | 2.17 | 0.22 | 0.05 | -0.79 | 0.00 | 0.33 |
| Embassy Office Parks REIT | 368 | 34,874 | 18.95 | 4.20 | 0.00 | 0.38 | 1.97 | 13..49 | 48.7 | 4.37 |
Overview of the Real Estate Industry in Indian Market
India’s real estate sector is booming, with 80% dedicated to residential spaces and 20% to offices, malls, hotels, and hospitals. Recent high demand for both office and residential areas propels growth. Projected to hit over 48133 crores by 2047, the sector’s FY23 home sales soared to Rs. 3.47 lakh crore. Fueled by urbanisation and $56.03 billion in FDI, government initiatives like PMAY and FDI-friendly policies further elevate this thriving industry.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Advantages and Risks Associated with Investing in Real Estate Stocks
There are many advantages to investing in Real Estate stocks. Some notable benefits are :
- Profits from businesses and rental income. Appreciation in property value upon intelligent selling.
- Real estate diversifies, reducing volatility.
- Property value increases contribute to steady returns.
However, investing in Real Estate involves tax complexities, as dividends may face higher rates. The 20% pass-through deduction, though applicable, adds intricacy. Interest rate sensitivity and property-specific risks demand careful consideration for informed investment decisions.
Why should you invest in Real Estate stocks in India?
A practical method to generate wealth and broaden your investments is to invest in Indian real estate stocks. Astute investors in the dynamic Indian market can find a unique combination of stability, passive income, and growth chances in real estate stocks, given the sector’s potential for long-term value gain, rental income, and tax benefits.
How to start Investing in Real Estate Stocks?
SMC provides a one-stop solution for all your real estate investments. Just follow these steps to start your investment journey with us :
- Go to the official website of SMCtradeonline or simply download the app
- Open a free demat account
- Start investing
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Conclusion
In summary, purchasing Indian real estate stocks is a great way to diversify your portfolio and create wealth. There is a clear possibility for long-term value appreciation and high-end real estate demand in this growing sector, which is expected to become a US$ 1 trillion market by 2030.
