Top 10 Best Real Estate Stocks to Invest in India 2024

The Indian real estate sector has been experiencing significant growth and transformation in recent years. This makes it an attractive option for investors looking to diversify their portfolios. As India's economy continues to expand and urbanisation accelerates, the demand for residential, commercial, and retail spaces is on the rise. 

As an investor, you can leverage this growth by investing in real estate stocks. In this article, we will look at 10 of the top real estate stocks that you can consider investing in.  

Top 10 Real Estate Stocks to Invest in India in 2024

The 10 companies listed below have demonstrated resilience, innovation, and the ability to adapt to changing market conditions. Here is everything you need to know about these real estate stocks, along with their key financial metrics. 

1. DLF Limited

DLF Limited, founded in 1946, is one of India's largest and most renowned real estate companies. With a strong presence in both residential and commercial sectors, DLF has played a significant role in shaping the urban landscape of many Indian cities, particularly in the National Capital Region (NCR). DLF's strong brand recognition, extensive land bank, and diverse project portfolio make it one of the best real estate stocks to invest in. 

2. Godrej Properties Limited

Godrej Properties Limited, a part of the Godrej Group, was established in 1990. Since then, the company has established itself as one of India's most trusted and innovative real estate developers. Godrej Properties has a strong presence across major cities in India, with a focus on residential, commercial, and township projects. If you are considering investing in the real estate sector, Godrej Properties Limited could be a good large-cap stock in the sector. 

Note: Figures in parentheses represent negative values.

3. Prestige Estates Projects Limited

Founded in 1986, Prestige Estates Projects Limited is one of India’s leading luxury residential real estate developers. The company has a total of 40 residential projects across eight major cities in India. In addition to residential projects, Prestige Estates also undertakes the development of commercial properties, hospitality, and retail malls. The company's strong brand presence in South India and its track record of successful project execution make it one of the most attractive real estate stocks.

4. Sobha Limited

Sobha Realty Limited, established in 1995, has built a reputation for delivering high-quality residential and commercial projects across India. The company is known for its backward integration model, which allows it to maintain control over the entire construction process, from manufacturing building materials to project execution. Sobha has a very strong presence in Bengaluru and has also expanded to other key markets like Chennai, Coimbatore, Delhi NCR, Hyderabad, and Kochi, among others. 

5. Mahindra Lifespace Developers Limited

Mahindra Lifespaces, the real estate and infrastructure development arm of the Mahindra Group, is a pioneer in sustainable urban development. The company focuses on developing residential projects, integrated cities, and industrial clusters across India. Mahindra Lifespaces has also made significant strides in the affordable housing segment through its 'Happinest' brand, addressing the growing demand for quality, budget-friendly homes in urban areas. Mahindra Lifespaces is one of the fastest-growing real estate stocks in India.   

Note: Figures in parentheses represent negative values.

6. Sunteck Realty Limited

Founded in 1981, Sunteck Realty Limited has rapidly grown into a prominent player in Mumbai's premium real estate market. The company is known for its luxury and ultra-luxury residential projects in prime locations across the Mumbai Metropolitan Region (MMR). The company has developed iconic projects in areas like Bandra Kurla Complex (BKC), Oshiwara District Centre (ODC), and Goregaon, catering to high-net-worth individuals and affluent professionals.

7. Brigade Enterprises Limited

Brigade Enterprises Limited is one of South India's leading real estate developers. The company has a diverse portfolio spanning residential, commercial, retail, and hospitality sectors, with a strong presence in Bengaluru, Chennai, Hyderabad, and Mysuru. The company’s core values revolve around QC-FIRST, which represents quality, customer centricity, fairness, innovation, social responsibility, and trust. Brigade Enterprises Limited is among the few real estate stocks in India with good long-term growth potential.  

8. Macrotech Developers

Founded in 1980, Macrotech Developers (formerly known as Lodha Developers) is among India's largest real estate developers in terms of sales. The company has a strong presence in the Mumbai Metropolitan Region (MMR) and Pune and is now expanding its footprint to Bengaluru. The company has a strong ability to cater to various market segments, which has helped it maintain sales momentum even during challenging market conditions.  

9. Oberoi Realty Limited

Established in 1998, Oberoi Realty Limited is a premium real estate developer primarily focused on the Mumbai market. The company is known for its high-quality residential, office space, retail, hospitality, and social infrastructure projects. The company has developed several landmark projects in Mumbai, including the Oberoi Mall, Oberoi International School, and luxury residential towers in prime areas like Goregaon and Worli. Including Oberoi Realty Limited in your portfolio could be a good option if you are interested in investing in real estate companies focusing on premium projects. 

10. Phoenix Mills Limited

Phoenix Mills Limited, established in 1905, has transformed from a textile manufacturing company to one of India's largest retail-led mixed-use developers. The company is India’s largest retail real estate developer, with large-scale projects across major cities in India. Phoenix Mills Limited currently has 10 operational malls, 2 hospitality assets, 5 commercial assets, and 2 residential assets. It also has 3 under-construction malls with a total space of 0.45 million square metres (MSM). 

Conclusion

Although investing in the real estate sector could be a good way to create wealth over the long term, it is important to note that not all stocks may be fundamentally strong. Fortunately, through fundamental analysis, you can unearth good-quality real estate stocks with strong fundamentals. With the various tools offered by the Research 360 platform of Motilal Oswal, you can conduct comprehensive stock-level fundamental analysis to determine if a particular company is a good candidate for investment or not. 

On the other hand, if you are looking for real estate investment options other than stocks, you may choose to invest in REITs. Real Estate Investment Trusts (REITs) are special investment vehicles that invest in income-producing real estate properties. In addition to capital appreciation, they also provide regular income.