Sobha, DLF, Phoenix Mills and 3 other realty stocks delivered 100%-235% returns in FY24; check full list

FY24 saw a remarkable demand surge for residential properties across the top cities in India, reaching unprecedented levels. The demand for luxury homes, in particular, experienced a significant spike, fueled by factors such as rising disposable incomes, changes in lifestyles, and the growing number of high-net-worth individuals.

Fueled by this robust demand, real estate developers reported a strong set of numbers during the first nine months of FY24, driving their stock prices to deliver significant returns for investors.

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Meteoric rise

In FY24, the Nifty Realty index emerged as the top-performing sectoral index, recording a fabulous return of 132%. The majority of stocks within the index experienced significant growth over the last financial year. Among the 10 constituents of the index, six saw multibagger returns, with Sobha leading the pack with a remarkable rally of 235%.

Other notable performers included Prestige Estates Projects, DLF, Macrotech Developers, Godrej Properties, and Phoenix Mills, all of which delivered returns ranging between 100% and 230% in FY24.

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Historically, real estate has remained a favored investment avenue in India, attracting a significant portion of household savings. With the country's economy growing, the expanding middle class is experiencing increased disposable income, consequently driving up the demand for residential properties. 

The demographic shift towards a more affluent lifestyle is fueling the desire for luxury homes, offering amenities and comforts beyond those found in conventional housing. 

In today's modern world, there's a growing demand for residences that offer top-notch amenities for entertainment, fitness, and relaxation, all conveniently located nearby. This trend has led individuals to seek homes that provide a high level of comfort, convenience, and luxury.

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Moreover, significant investments from high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) have further propelled the demand for luxury properties.

Flying off the shelves

In FY24, property developers have witnessed remarkable demand, selling out their entire inventory of luxury flats within days of pre-launch. For instance, real estate giant DLF sold 1,113 luxury apartments priced above ₹7 crore in Gurugram, generating ₹7,200 crore in just three days.

In 2023 alone, sales of luxury homes in India priced at ₹4 crore and above surged by 75%, effectively doubling the share of these high-end residences in total housing sales, as per a report by real estate consultancy CBRE.

Looking ahead, the future of the Indian real estate market appears promising, as the projections indicate that the Indian economy is poised to grow by 7.6% in FY24, up from 7.3% in FY23. 

Also Read: Luxury revolution sweeping India: What's fueling the shift in consumer preferences?

According to the Wealth Report 2024 by global consultancy Knight Frank, the number of ultra-high-net-worth individuals (with a net worth of over US$ 30 million) is projected to increase from 13,263 in 2023 to 19,908 by 2028.

This projection signifies an anticipated increase in investments flowing into the Indian real estate market.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.