Indian residential market 1QFY27 preview: Resilient

Research evidence excerpt

Indian residential market 1QFY27 preview: Resilient

2 July 2026

Indian residential market EquitiesREMD

1QFY27 preview: Resilient India

◆ Despite seasonal weakness, fewer launches and geopolitical

Puneet Gulati*, CFA

worries, residential demand has remained resilient in 1Q Senior Analyst, India Energy, Property & Infra

HSBC Securities and Capital Markets (India) Private Limited

◆ We see improvement in sector interest with expectations of puneetgulati@hsbc.co.in+91 82 9189 7591

better reported profitability and FCFE generation in FY28 Sambhav Kela*

Analyst, India Real Estate & Power

◆ Maintain Buy ratings on GPL, PEPL, Oberoi, Sobha, and DLF HSBC Securities and Capital Markets (India) Private Limited

sambhav.kela@hsbc.co.in

+91 22 40891464

1Q residential trends reaffirm confidence in sector resilience: At an industry level,

launches for Apr-May’26 are down 6% y-o-y but absorption volumes were up 7% y-o-y

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

and absorption value was still up a strong 15% y-o-y (source: PropEquity). Average not registered/ qualified pursuant to FINRA regulations

size of apartments continues to increase even as realisations are stabilising. This

supports reputed developers catering to the more discerning upper income segment of

the market. Unsold inventory levels remain healthy at c20 months for the industry.

We expect our coverage to follow similar trends with individual companies

performing as per their launches: Since DLF and Oberoi had no material new

launches, we expect both to report y-o-y declines in booking value. However, we still

expect sustenance sales to be in line with previous quarters. Sobha and Godrej

Properties had some successful launches; we forecast bookings growth of 65% and

10% y-o-y respectively.