India’s listed real estate developers continue to strengthen their position as branded players gain market share in an evolving housing market, according to the latest report by Motilal Oswal Financial Services. The brokerage believes the ongoing consolidation across the sector is creating attractive opportunities for investors, especially in companies with strong balance sheets and consistent project execution.
Among large-cap developers, Lodha has emerged as Motilal Oswal’s preferred choice with an estimated upside potential of 29%. In the small and mid-cap segment, Aditya Birla Real Estate stands out as the brokerage’s top pick, offering an expected upside of nearly 39%. The firm also maintains a positive outlook on DLF and Godrej Properties, while assigning a Neutral rating to Oberoi Realty due to its premium valuation.
The report notes that although residential demand has moderated across India’s top eight cities, established developers continue to outperform smaller players. Improved cash flows, disciplined project launches and stronger financial positions have enabled leading companies to expand their market share despite broader industry challenges.
Motilal Oswal also highlighted that many listed real estate companies are currently trading at discounts of around 10% to 35% to their net asset values (NAV), making valuations attractive for long-term investors. The brokerage expects healthy free cash flow generation and sustained growth over the medium term, supported by continued consolidation and rising consumer preference for trusted, branded developers.
