Real Estate Sales Momentum Set to Surge in 2HFY27
Emkay Research predicts a massive pick-up in real estate sales momentum for 2HFY27 driven by a strong pipeline of new project launches.
India’s real estate sector is bracing for a significant boost in activity, with sales momentum expected to accelerate during the second half of the 2027 fiscal year. According to a recent report by Emkay Research, this anticipated surge will be fueled by a robust pipeline of upcoming project launches and a steady, resilient demand for housing across the country's most critical markets.
Resilient Demand Amidst Market Shifts
The second quarter of FY27 showcased a landscape of varying trends across India's major urban hubs. While the overall demand for residential properties remained strong, different regions experienced distinct market behaviors:
- Bengaluru: Recorded healthy levels of residential absorption, signaling continued interest in the tech hub.
- Mumbai Metropolitan Region (MMR): Maintained a steady and consistent sales momentum.
- Gurugram: Experienced a notable wave of cancellations, though these were primarily attributed to short-term investors exiting their positions.
Interestingly, the report highlighted a clear divide between different types of developers. While speculative markets faced some volatility, projects led by reputed and established developers remained largely insulated. This stability is credited to their buyer base, which consists predominantly of end-users and long-term investors rather than short-term speculators.
A Strong Pipeline Awaits the Second Half
During the second quarter, new project launches were somewhat subdued, a trend often attributed to seasonal factors. This meant that pre-sales figures were largely dependent on the inventory already available in the market. However, the outlook for the remainder of the year is far more bullish.
"With 2H typically being a stronger period for real estate developers, a healthy launch pipeline is lined up across most developers, which should support a pick-up in sales momentum," the Emkay Research report stated. Major developers have already signaled this strength in their 2QFY27 business updates, reporting robust pre-sales numbers.
Retail and Mall Consumption Remains Robust
Beyond residential real estate, the report also touched upon the retail landscape, noting that mall consumption in India has remained remarkably resilient. Despite a challenging macroeconomic environment, the momentum observed over the previous three quarters has continued into the second quarter of FY27.
Listed mall operators are successfully navigating market complexities through several strategic moves, including:
- Asset Repositioning: Integrating more premium brands into their mix.
- High-Value Expansion: Increasing the presence of lucrative categories like jewellery.
- Tenant Remixing: Optimizing the variety of stores to better serve consumers.
- Experience-Led Retail: Placing a heavier emphasis on food, beverage, and experiential offerings to drive footfall.
Emkay expects major mall operators to report significant consumption growth, supported by broad-based spending across various consumer categories.