In this article, I will share the ten best real estate stocks in India, where you can invest using the traditional stock market trading system and earn money.
Because all of these real estate stocks are performing really well, they are making the industry forward by building huge buildings, introducing real estate investment trusts (REIT), and employing more and more people along the way.
The Best Real Estate Share List in India
Since mid-2021, real estate stocks in India have seen massive growth in their share prices after the pandemic that devastated the industry two years ago. But now, the market is showing signs of exceptional growth.
Let’s have a look at all the real estate stocks listed on the Indian stock exchange and how well they are performing.
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How does the real state stocks are performing?
But first, let me tell you that the real estate sector is not just about residential properties. It’s also the hospitality and commercial spaces.
Today, 80% of the real estate properties in India consist of residential homes and 20% of offices, shopping malls, hotels, hospitals, and other spaces.
Between Jan and Sept 2021, private equity investment in India was $3.3billion. Plus, the no of new home buyers in eight major Indian cities surged by 113% year on year. The Foreign Direct Investors (FDIs) increased by 7%, and the small investments are also on the rise.
With that data, we can say the real estate market in India is evolving and will continue to evolve. These ten real estate stocks will continue to perform well in the long run until a new disaster happen. No one wants that. So here is the top ten real estate stock list you can invest in to make money via the stock market.
1. DLF Stocks
DLF (Delhi Land and Finance) is a real estate company in India with a total market cap of about ₹96,000 CR. DLF is mainly involved in commercial building development. The DLF Cyber City based in Gurgaon is the best example of its success.
Also, they develop residential and retail properties with a small hand in leasing, power generation, maintenance services, and hospitality sector business.
The company DLF was started by Choudhary Sahab in 1945, at the time of Indian independence. But after a few years, DLF was out of the market and moved their company into a different industry.
The reason was the Delhi government 1960 introduced a new development that says, no private player is not allowed to develop building the city. Only the government has the right to do so.
His son-in-law K P Singh took over the company after a few years to improve the company, and with time they built DLF Cyber City and became one of the biggest real estate development companies in India.
DLF has been in this real estate sector for more than 75 years and has developed over 150 real estate projects all over the world, covering about 330+ million sq. ft.
K P Singh’s son Rajiv Singh is the richest real estate developer in India, with a total net worth of ₹61,220 crores.
2. Macrotech developers
Mr. Lodha was the richest real estate developer in India for about five years, and recently they introduced their IPO and raised some money from it to expand this business.
Mangal Prabhat Lodha came to Mumbai as an average man. He had nothing with him, just his education. He started from the basics and became the richest developer in India.
His company’s name was Lodha Developers. The Macrotech Developers is the new name they gave recently. They mostly know for luxury building development. The famous tower World tower in Mumbai is built by the Lodha group. Most of the skyscrapers you see today are developed by the Lodha group.
Their real estate stock did not perform as expected, but the fundamentals are still strong. In Dec 2021, their stock price was at an all-time high at about ₹1500, but now it’s a little less, about ₹1000.
They are recovering and soon will reach their full potential as the expert predicted. Lodha is a self-made man whose net worth is around ₹36,430CR.
3. Godrej Properties
No introduction is needed for the man Adi Godrej who founded the company Godrej Properties around the 1990s. But the main company Godrej Industries Limited was established in 1963, and the property company is a subsidiary of that.
They have built many famous buildings across India. Pune accounts for 27% of it, Mumbai MMR for 21%, Bangalore for 17%, Delhi for 15%, and the rest for 21%.
Their current share price is about ₹1400 and has a market cap of ₹45,000 CR. If you want stable real estate stock, Godrej Property is for you.
4. Oberoi Realty
The company Oberoi Realty is a well-known real estate development company in India. It was founded in the year 1980 under the name of Kingston Properties, but later it changed to Oberoi Realty.
They develop residential homes, office spaces, retail shops, hospitals, and social infrastructures. Most of the revenue comes from residential buildings, about 80% and 16% from commercial buildings, and 5% from property management services.
Vikas Oberoi is the current MD. The company Oberoi Realty was founded by his father, Ranvir Oberoi. Today, Vikas has a net worth of about ₹23,000 CR.
5. Phoenix Mills
Phoenix mills is a fantastic real estate company that builds properties all over India. For more than 100 years, they are in the business with a total market cap of ₹24,595 CR with a few fluctuations. Hmm, that’s impressive.
Ramnarain Ruia founded the company in 1905 in India. They are the largest retail developer in India. In the last five years, they have shown exceptional growth, from ₹400 per share in 2017 to about ₹1400 per share in 2022. And that price will continue to grow because of their track record.
6. Prestige Estates
The company Prestige Estate was founded by Razack Sattar in 1986 in Bangalore, India. They have a market cap of about ₹19,660. Their 75% of revenues come from the real estate segment, 15% from the leasing segment the remaining 10% comes from room rentals, food, and beverages.
It is one of the best and well knows real estate companies in India, and people are ready to pay a premium fee to live in their homes. That’s the kind of reputation they have in the market.
7. Brigade Enterprises
Brigade is one of the reputable real estate companies in India. M.R. Jaishankar founded the company in 1986. Their real estate stock is performing really well recently, from ₹166 in 2017 to ₹560 in 2022, with a market cap of ₹13,120 CR.
That means the company is on the rise, and you can take a part in it by investing your money in its development.
8. Sobha Stocks
Sobha is the last company on our top real estate share list. You also have heard about Sobha. P. N. C. Menon founded the company in 1995, headquartered in Bangalore.
They have a market cap of around ₹6,667 CR and a share price of around ₹750, which was ₹600 in 2017. That means they are also performing well enough.
If you look at their real estate share, you will see they have never performed below average. They have always performed well in the market and developed a strong reputation among buyers.
Undoubtedly they are one of the best real estate companies in India in the current situation.
9. Sunteck Realty
You must have heard about this company. One of the best real estate developers in India was funded in 1981 by Kamal Khetan.
The company was in bad shape because of the pandemic, but now they are improving. Now their real estate stock price is close to ₹500 from just ₹150 in 2020.
They have a market cap of ₹6,780 CR. They mostly focus on mid-range residential homes. Those who buy apartment homes know this company very well. A well-known and reputable real estate stock that you can invest in.
10. NBCC Stocks
Now, NBCC, or National Buildings Construction Corporation Limited is a government real estate company, the only company in this list managed by the Ministry of Housing and Urban Affairs, Government of India.
NBCC was founded in 1960 in Delhi. Today the company has a total market cap of ₹6,417Cr. These real estate stocks are not performing that well, just ₹34 in today’s time, but five years ago, it s was about close to ₹150.
As it’s a government company, you can rely on it. It’s a well-known company and will improve in the coming years.
If you want to invest in any of these real estate stocks, you can do it directly in the stock market. All the analysis data are valuable on Google, just give it a search. I am not recommending you invest in any of these stocks. This article is for educational purposes only.
Invest with caution. Thanks for reading. See you soon.