Real estate shares fall for 3rd day amid profit booking; Godrej Properties, Oberoi Realty fall up to 3%

Meanwhile, according to a report by Informist, Nuvama Institutional Equities noted that the real estate sector is expected to face volatility in the near future due to concerns over sluggish volume growth, decreasing housing affordability, and a shortage of mid-income homes.

Nuvama highlighted that investor confidence has weakened, largely because of a lack of uniformity in the real estate market, an issue not seen since the period between 2020-21 (April to March) and FY24. Sales volumes dropped between June 2024 and May 2025. The firm explained that rising home prices have reduced affordability, with premium and luxury segments dominating sales, resulting in a narrow housing cycle. They expect price increases to slow down, which could reduce investor-driven demand.

The brokerage report also pointed out that the National Capital Region (NCR) and Pune remain the strongest markets, with inventory levels of just 10 and 13 months, respectively. Other cities have higher inventory levels, ranging from 17 to 21 months, except Hyderabad, which has 26 months of inventory.

Nuvama anticipates that real estate stocks will continue trading within a limited range and that volatility will persist. Falling mortgage rates might soften the downward pressure, but concerns around valuations and volume growth will likely restrict upward movement.

In a separate note last week, Nuvama suggested that the market consistency seen from FY21 to FY24 may no longer continue. The brokerage believes Bengaluru and Chennai’s housing markets still have room for growth, while Hyderabad may have already peaked.

Regarding the Mumbai Metropolitan Region (MMR), the report describes it as being in a mid-cycle phase. Pune, meanwhile, appears to be experiencing “growth fatigue,” while Gurugram is dealing with challenges related to housing affordability.