Real estate shares extend losses for a fourth session, Prestige Estates top loser after I-T search

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26 Aug, 2025 12:21

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Shares of real estate companies fell sharply on February 27, pushing the Nifty Realty index down by over 2 percent, extending the fall to over 5 percent after fourth session of selloff.

Prestige Estates was the top loser on the index, crashing nearly 5 percent, following an exchange filing dated February 25 that mentioned Income Tax searches at the registered office and other branch offices. At the time of the release, Prestige Estates had said that the financial impact of the search could not be ascertained. "The company is fully cooperating with the authorities, providing them with all necessary information and support," it added.

The shares of Phoenix Mills tumbled nearly 4 percent to trade at Rs 1,503 apiece. The stock is currently trading over 27 percent lower than its 52-week high of Rs 2,068 apiece, which it had hit in July last year. It is now hovering near its 52-week low of Rs 1,215 apiece.

The shares of Raymond, Mahindra Lifespace Developers, DLF and Godrej Properties dropped over 2 percent each, while those of Macrotech Developers and Oberoi Realty were trading nearly 1.5 percent lower. Sobha shares were trading will marginal losses.

Only one share bucked the trend to trade in the green. Brigade Enterprises shares were trading with marginal gains at Rs 980 apiece.

This correction comes amid concerns over investor interest in the sector, given the soaring property prices in major metros. Prices in the National Capital Region (NCR) have jumped over 50 percent last year, and other markets too have seen high double-digit increase, Dhruv Agarwala, Group CEO, Housing.com & PropTiger.com told Moneycontrol in an interview.

Unlike previous years, 2025 may not be a record year of sale but one of consolidation, he added.

"When prices climb too fast, end-users are priced out, leaving mostly investors and speculators, which isn’t healthy for the market. A cooling market could stabilise prices and bring end users back. A course correction is already happening. The question is whether it will persist or flatten. Stability isn’t bad as it strengthens the market by bringing back end users," Agarwala said.