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Morgan Stanley Favors Three Developers as Housing Sales Grow
Morgan Stanley reviewed five large property developers in India.
It said home sales in the biggest cities kept growing in July and August.
Home prices also rose, while the buildup of unsold homes slowed.
The bank favors Godrej Properties, Prestige Estates and Lodha Developers, but for different reasons.
Godrej has the highest estimated sales total among the five.
Prestige has the highest expected sales growth.
Lodha benefits from strong demand in Mumbai, according to the report.
Big upcoming project launches could help shape the developers’ sales in the next quarter.
The report also notes that each company has different growth expectations and share valuations.
Morgan Stanley said sales value across India’s top six cities rose 7% year-on-year in July-August, while sales volumes increased 2%.
Prices rose 14% in July and 8% in August, and inventory growth moderated to 15% year-on-year from 18% in the first half of 2026.
The bank rates Godrej Properties, Prestige Estates and Lodha Developers Overweight, citing factors including sales momentum, growth prospects and market exposure.
Godrej Properties has the highest FY27 pre-sales estimate among the five developers at Rs 39,000 crore; Prestige Estates has the highest estimated growth at 17%.
Morgan Stanley said upcoming large launches could make the third quarter of FY27 important for developers’ pre-sales.
- Who
- Morgan Stanley and the five developers it tracks: DLF, Prestige Estates Projects, Godrej Properties, Oberoi Realty and Lodha Developers.
- What
- Morgan Stanley reported continued housing-market growth and maintained Overweight ratings on Godrej Properties, Prestige Estates and Lodha Developers.
- Where
- India’s top six residential markets, including Mumbai, Noida, Navi Mumbai and Bengaluru.
- When
- The market data covers July-August 2026; the estimates discussed are for FY27.
- Why
- The bank cited sales momentum, firm pricing, moderated inventory growth, launch pipelines and differing company and market strengths.
Key facts
- Top-six-city sales value growth
- 7% year-on-year in July-August
- Top-six-city sales volume growth
- 2% year-on-year in July-August
- Price increases
- 14% year-on-year in July and 8% in August
- Inventory growth
- 15% year-on-year, down from 18% in the first half of calendar 2026
- FY27 pre-sales estimates
- Godrej Properties Rs 39,000 crore; Oberoi Realty Rs 34,000 crore; Prestige Estates Rs 30,000 crore; Lodha Developers Rs 20,500 crore; DLF Rs 20,000 crore
- Overweight-rated developers
- Godrej Properties, Prestige Estates and Lodha Developers
- Luxury housing growth
- Sales value rose 14% and volumes increased 13% year-on-year in July-August
Quotes
Morgan Stanley
Investment bank commenting on residential market performance.
“Godrej Properties remains our preferred large-cap developer, supported by strong pre-sales growth, a healthy launch pipeline and attractive valuations. We believe the company’s strong execution track record and balance sheet provide sufficient flexibility to pursue growth opportunities.”
financialexpress.com
“The residential market continued to show healthy momentum in July-August, with LTM sales value across the top 6 cities growing 7% YoY and volumes up 2% YoY. Price growth remained strong, with Jul-26 and Aug-26 prices rising 14% and 8% YoY, respectively, well ahead of CPI inflation.”
financialexpress.com
Sources
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