Lodha, Godrej Properties among top realty buys for Jefferies on hopes of strong H2

Global brokerage Jefferies, in its note on the real estate sector, said new launch momentum is picking up in November after a festive-shutdown led slowdown in October across the residential markets.

Listed developers have had a strong start to the year, and Jefferies estimates its coverage universe to deliver about 25% pre-sales growth in FY26.

The brokerage said Godrej Properties and Lodha are likely to post strong new launches and sales performance in the second half of FY26, making them among its preferred picks.

Jefferies added that the Realty Index is currently down 20% from its 2024 peak, and valuations look attractive at these levels.

Meanwhile, the new labour laws may result in higher costs for India’s real estate players but could also resolve the long standing issue of labour shortages, experts told CNBC-TV18 on November 24.

India’s real estate stocks, from Prestige Estates to Brigade Enterprises and Oberoi Realty, declined up to 1% today.

All but one stock on the Nifty Realty Index are trading with losses.

Labour costs in real estate typically account for 15% to 30% of overall project costs depending on the city.

The impact of the new labour code is expected to be lower in Mumbai compared to other markets, where excluding land costs, labour makes up about 20% to 25% of total construction expenses.

According to Anuj Puri of Anarock Property Consultants, labour costs could rise 10% to 15% due to the new laws, potentially pushing up total development costs by 3% to 4%.

Puri added that developers are likely to pass on these costs to buyers rather than absorb them in their P&L accounts.