Elara Securities stays bullish on realty cycle; luxury housing anchors demand momentum

The Indian real estate cycle is showing no signs of fatigue, with Elara Securities reiterating its bullish stance on the sector.

The brokerage highlighted that demand momentum remains strong, supported by healthy absorption trends, robust balance sheets of listed developers, and increasing participation in the luxury housing segment.

In its September 2025 real estate chartbook, the brokerage highlighted that strong absorption trends, healthy balance sheets of listed developers, and a surge in demand for premium and luxury housing are keeping momentum intact.


Absorption across the top seven cities rose sharply in the first half of CY25, with luxury housing emerging as the standout driver.

The share of premium and luxury units in overall demand has risen meaningfully over the past year, supported by higher disposable incomes, rising aspirations, and a strong tilt toward branded developers.

According to Elara, leading realty players such as DLF, Macrotech Developers, and Prestige Estates are strategically anchoring new launches around the premium and luxury segment. This reflects confidence in both end-user and investor demand, especially in metros like Mumbai and Pune, which have become hotspots for high-value projects.

Presales for listed developers surged 39% year-on-year in Q1FY26, led largely by luxury and premium projects. Despite the sharp increase in new launches, inventory levels in this segment remain comfortable, indicating balanced demand-supply dynamics.

Elara Securities also noted that the strength in luxury housing is closely tied to supportive macro factors. These include steady job creation in urban India, improving affordability ratios, and shifting consumer preferences toward larger, high-quality homes.

Developers’ focus on premiumisation, the brokerage added, is expected to keep the sector’s earnings trajectory on a strong footing.

Against this backdrop, Elara reiterated its positive view on the real estate cycle and listed DLF, Macrotech Developers, and Prestige Estates as its preferred picks to ride the ongoing uptrend in luxury housing.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)