Realty Stocks: DLF, Lodha Developers jump up to 10%–Brokerages see up to 30% upside

Real estate stocks saw a sharp rally on Wednesday, rising up to 10 per cent, as improving global cues and strong domestic fundamentals lifted investor sentiment across the sector.

The Nifty Realty index surged 6.75 per cent to around 745 levels, clearly outperforming the broader market. Benchmark indices also ended strongly, with the Nifty 50 gaining nearly 4 per cent and Bank Nifty closing 5.67 per cent higher.

Rate hopes and global cues support sentiment

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One of the key triggers behind the rally was easing tensions in the Middle East, which improved expectations of a supportive stance from the Reserve Bank of India. Stable or lower interest rates could reduce home loan costs, improving affordability and supporting housing demand.

Strong Q4 updates boost confidence

Recent Q4 operational updates from players like Lodha Developers Ltd and The Phoenix Mills Limited pointed to strong sales, leasing activity, and execution momentum, reinforcing confidence in the sector’s growth outlook.

Office leasing hits record levels

India’s office market recorded its strongest-ever quarter, with leasing at 29.9 million square feet in Q4 2026, up 6 per cent from the previous peak.

Demand was driven by global capability centres and domestic firms across key cities like Bengaluru and Mumbai, supporting rental stability and fresh supply.

Correction-led buying adds fuel

The sector had fallen nearly 44 per cent over the past 10 months, making it one of the worst performers. This sharp correction triggered bargain buying and short covering, accelerating the rebound.

Stock-specific action remains strong

Among key stocks, DLF Ltd rose 7.24 per cent to Rs 572.75, while Lodha Developers Ltd jumped 8.73 per cent to Rs 780.30.

Godrej Properties Ltd gained 6.23 per cent to Rs 1,705, and Prestige Estates Projects Limited climbed 8.41 per cent to Rs 1,324.90.

Meanwhile, Oberoi Realty Ltd advanced 4.98 per cent to Rs 1,638.

Brokerages cut targets but stay positive

According to Jefferies, near-term demand could see some impact due to global uncertainties, especially in Q1FY27. The brokerage has cut FY27 pre-sales growth estimates to 6 per cent from 21 per cent earlier and factored in slightly higher interest rates.

However, it highlighted that the sharp correction has already brought valuations below weak-cycle levels, limiting downside risk.

Jefferies maintained a positive stance on key stocks, though it trimmed target prices:

DLF Ltd – Buy, target cut to Rs 800 (from Rs 900)
Lodha Developers Ltd – Buy, target cut to Rs 1,215 (from Rs 1,475)
Godrej Properties Ltd – Buy, target cut to Rs 2,420 (from Rs 2,700)
Prestige Estates Projects Limited – Buy, target cut to Rs 1,635 (from Rs 1,850)
Oberoi Realty Ltd – Hold, target cut to Rs 1,680 (from Rs 1,700)

The brokerage continues to prefer DLF, Godrej Properties, and Lodha Developers among the pack.

Outlook

A mix of easing global risks, strong operational performance, and attractive valuations has brought investors back to the real estate space. While near-term demand may see some moderation, the sharp correction appears to have priced in most negatives, setting the stage for a potential recovery.