Morgan Stanley has highlighted that the real estate sector’s outlook remains favourable on the back of strong sales momentum in the third quarter of the financial year 2024-2025. The firm observed that real estate companies like DLF Limited and Oberoi Realty are expected to report robust pre-sales in the third quarter of FY25.
Morgan Stanley, in its report said, "Expect DLF and Oberoi to show very strong sales momentum in Q3FY25 with key launches, resulting in 20-35 percent QoQ growth in sales. DLF expected to report growth of 60 percent YoY in FY25 outpacing peers."
It said that pre-sales of 150 units at DLF’s Dahlias project for Rs 120 billion (Rs 12,000 crore) and 13 units at Oberoi’s 360 West project are “positive surprises”.
DLF’s Dahlias is touted to be the country’s most expensive residential real estate project in India, which is coming up on Golf Course Road in Gurugram. According to data by PropEquity, the Dahlias project has a revenue potential of around Rs 34,000 crore, around 2.5 times that of DLF's The Camellias. The apartments are sized between 9,500 square feet to 16,000 square feet, with the ticket size expected to be around Rs 100 crore.
Oberoi Realty’s 360 West is a super luxury real estate development in Mumbai's Worli area, home to several celebrities and top business executives.
DLF’s new sales bookings during the second quarter of FY25 were down to Rs 692 crore mainly due to a delay in receiving the requisite approvals for new product launches but the company, in an investors call in October 2024, had said that they have a strong sales pipeline for the quarter three of FY25.
The Morgan Stanley report further stated that real estate developers Macrotech Developers (Lodha) and Godrej Properties should report pre-sales of Rs 4,100 crore and Rs 5,300 crore, respectively, in line with expectations.
The report, however, said that for Bengaluru-based Prestige Estates even with Rs 10,500 crore assumed fourth quarter sales, FY25 should see only 2 percent growth.
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