Top 10 REITs (Real Estate Stocks): Best Real Estate Companies (2024)

Last Updated on Oct 25, 2024 by Aishika Banerjee

Real estate stocks and the best REITs are gaining prominence in India’s financial markets as viable investment options. The REITs full form is Real Estate Investment Trusts. These vehicles allow individuals to invest in real estate assets without the need to purchase property outright. Instead, investors can buy shares in companies that manage real estate portfolios or in REIT in India that own income-generating properties.

The Indian real estate market has demonstrated resilience and potential for growth, making it an appealing sector for investors. According to a report by the India Brand Equity Foundation (IBEF), the real estate sector in India is projected to reach a market size of USD 1 trillion by 2030, up from USD 120 billion in 2017, and is expected to contribute 13% to the country’s GDP by 2025. Given this significant growth potential, this article explores the benefits and risks of investing in real estate stocks, key factors to consider, and how to get started, providing a comprehensive guide for those interested in this investment opportunity.

Best Real Estate Stocks in India – October 2024

Note: The data in this list of the top 10 real estate companies in India is from 24th October 2024. To get this list of top real estate stocks in India on the Tickertape Stock Screener, apply the below-mentioned filters.

• Sector > Real Estate
• Fundamental Score: Sort from highest to lowest
• 1Y Return: Positive (Set the lower limit to zero)
• Net Profit Margin: Set to High
• Net Income: Positive (Set the lower limit to zero)

Fundamental Score: It is a smallcase proprietary score between 1 and 10 assigned to stocks listed on NSE. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company. The score is calculated considering factors like valuation, profitability, market share growth, financial health and earnings growth of the company.

🚀 Pro Tip: Utilise Tickertape’s Market Mood Index to gauge market sentiment and make informed investment decisions based on real-time market data and trends.

Invest in the Best Real Estate Sector Stocks Selected by SEBI-Registered Analysts

Did you know that you can invest in readymade railway stock portfolios managed by SEBI-registered experts? But, before that, let’s look at what a smallcase is.

What is a smallcase?

smallcases are modern investment products that help investors build low-cost, long-term & diversified portfolios with ease. A smallcase is a basket or portfolio of stocks/ETFs representing an idea – an objective, theme, or strategy. They are created and managed by SEBI-registered experts.

With over 500 smallcases to choose from, here are some of the most popular smallcases you can check out:

All Weather Investing smallcase by Windmill Capital

Realty Tracker smallcase by Windmill Capital

Note: The smallcases are mentioned only for educational purposes and are not meant to be recommendatory. Investors must conduct their own research and consult a financial expert before making any investment decisions.

• Disclosure for aforementioned smallcases.

Overview of the Top 10 Real Estate Stocks in India

Here are brief overviews of the companies on the real estate stocks list above:

Coral India Finance and Housing Ltd

Coral India Finance and Housing Ltd, incorporated in 1995 and promoted by the Coral Group, focuses on financing activities, including housing. In 2000-01, the company’s net profit dropped by over 40%, falling to Rs. 17.62 lakhs from Rs. 31.77 lakhs the previous year, largely due to the economic slowdown.

As of 24th October 2024, Coral India Finance and Housing Ltd has a market capitalisation of Rs. 202.68 cr. and a stock price of Rs. 49.19. The PE ratio is 9.76, with a fundamental score of 8.55, making it rank first on our real estate share list. The 1-year return is 23.44%, and the net profit margin is 67.94%. 

You can learn more about the stock’s performance here.

Eldeco Housing and Industries Ltd

In 1975, S.K. Garf, a former civil engineering lecturer turned technocrat businessman, founded Eldeco Construction Pvt Limited. Since then, the group has transformed North India’s landscape with prestigious mini-cities, group housing, budget housing, and commercial complexes.

As of 24th October 2024, Eldeco Housing and Industries Ltd has a market capitalisation of Rs. 842.54 cr. and a stock price of Rs. 827.35. The PE ratio is 24.89, with a fundamental score of 7.09. The 1-year return is 16.71%, and the net profit margin is 27.70%. 

Find out more about the company’s performance here. 

Phoenix Mills Ltd

Phoenix Mills Ltd, established in 1905, is a leading retail mall developer and operator in India. The company is engaged in the development and management of shopping malls, hospitality, commercial and residential complexes.

As of 24th October 2024, Phoenix Mills Ltd has a market capitalisation of Rs. 55,979.33 cr. and a stock price of Rs. 1,523.60. The real estate company had a PE ratio is 50.93, with a fundamental score of 6.78. The 1-year return is 74.60%, and the net profit margin is 26.75%. The net income for the last quarter was Rs. 232.53 cr.

Click here to learn more about the stock’s financial performance in comparison to its peers.

Marathon Nextgen Realty Ltd

Founded in 1994, Marathon Nextgen Realty Ltd is engaged in the development of residential and commercial properties in Mumbai and other cities. The company has a diverse portfolio, including townships, affordable housing, luxury residential, retail, small business spaces, and corporate parks.

As of 24th October 2024, Marathon Nextgen Realty Ltd has a market capitalisation of Rs. 2,890.70 cr. and a stock price of Rs. 564.50. The PE ratio is 17.36, with a fundamental score of 6.18. The 1-year return is 35.68%, and the net profit margin is 22.32%. The net income for the last quarter was Rs. 36.95 cr.

Click here to learn more about the stock’s financial performance.

Anant Raj Ltd

Aavas Financiers Ltd. (formerly ‘Au Housing Finance Limited’) operates as a registered Housing Finance Company (HFC) under the National Housing Bank (NHB). It focuses on providing long-term housing finance in domestic markets, targeting customers in the low and middle-income segments across sub-urban and rural India, as well as those in metro cities and urban regions.

As of 24th October 2024, Anant Raj Ltd has a market capitalisation of Rs. 23,602.43 cr. and a real estate share price of Rs. 690.45. The PE ratio is 90.47, with a fundamental score of 5.84. The 1-year return is 197.35%, and the net profit margin is 17.16%. The net income for the last quarter was Rs. 91.00 cr.

Click here to learn more about this company’s performance. 

Nesco Ltd

Founded in 1939, Nesco Ltd operates in the exhibition, realty, and engineering sectors. The company is known for its Bombay Exhibition Center, which hosts numerous trade fairs and exhibitions.

As of 24th October 2024, Nesco Ltd has a market capitalisation of Rs. 6,397.41 cr. and a stock price of Rs. 906.60. The PE ratio is 17.63, with a fundamental score of 5.43. The 1-year return is 41.62%, and the net profit margin is 46.32%. The net income for the last quarter was Rs. 69.78 cr. 

You can compare Nesco’s performance with those of its peers here.

Oberoi Realty Ltd

Oberoi Realty Ltd, founded in 1980 by Vikas Oberoi, is a leading real estate development company in India. The company develops residential, office space, retail, hospitality, and social infrastructure projects.

As of 24th October 2024, Oberoi Realty Ltd has a market capitalisation of Rs. 71,176.96 cr. and a stock price of Rs. 1,984.90. The PE ratio is 36.94, with a fundamental score of 5.31. The 1-year return is 81.41%, and the net profit margin is 39.91%. The net income for the last quarter was Rs. 589.44 cr.

Click here to learn more about the stock’s events.

Ganesh Housing Corp Ltd

Ganesh Housing Corporation Ltd ranks among Ahmedabad’s top real estate developers, actively involved in construction and development across the city and its surroundings. The company is currently developing numerous projects in Ahmedabad’s Residential, Commercial, Hospitality, SEZ, Integrated Township, and Retail sectors.

As of 24th October 2024, Ganesh Housing Corp Ltd has a market capitalisation of Rs. 8,241.15 cr. and a stock price of Rs. 977.15. The PE ratio is 17.89, and the fundamental score is 5.23. The company’s 1-year return is 159.16%, with a net profit margin of 51.25%. The net income for the last quarter was Rs. 158.49 cr.

Click here to learn more about Ganesh Housing Corp Ltd’s performance.

Texmaco Infrastructure & Holdings Ltd

Texmaco Ltd, a leading diversified engineering and infrastructure company in India, dominates the production of railway freight cars, hydro-mechanical equipment for mega power projects, heavy steel structures, and process equipment. 

As of 24th October 2024, Texmaco Infrastructure & Holdings Ltd has a market capitalisation of Rs. 1,381.18 cr. and a stock price of Rs. 107.80. The PE ratio is 257.68, and the fundamental score is 5.12. The company’s 1-year return is 37.59%, with a net profit margin of 20.73%. The net income for the last quarter was Rs. 0.36 cr.

You can click here to learn more about the company’s financials. 

DLF Ltd

DLF Ltd, established in 1946 by Chaudhary Raghvendra Singh, is one of the largest real estate companies in India. The company has a strong presence in residential, commercial, and retail real estate sectors.

As of 24th October 2024, DLF Ltd has a market capitalisation of Rs. 199,349.23 cr. and a stock price of Rs. 801.40. The PE ratio is 73.10, and the fundamental score is 4.50. The company’s 1-year return is 51.16%, with a net profit margin of 39.19%. The net income for the last quarter was Rs. 645.61 cr.

Learn more about the stock’s events here.

Benefits of Investing in Real Estate Stocks

1. Diversification: Investing in real estate stocks, including the best realty stocks in India, may diversify your portfolio. These real estate stocks India often have low correlation with other asset classes like equities and bonds, which can potentially reduce the overall risk of your investment portfolio.
2. Liquidity: Real estate stocks and REITs may offer higher liquidity compared to physical real estate. Unlike physical properties that can take months to sell, you can buy or sell shares in the stock market relatively quickly. This can be particularly advantageous during times when you need quick access to cash.
3. Income Generation: REITs, in particular, are known for their ability to generate regular income through dividends. These dividends are often derived from the rental income of the properties they own. For instance, Embassy Office Parks REIT, one of the leading REITs in India, has consistently distributed dividends to its investors.
4. Lower Entry Barrier: Investing in real estate stocks and REITs requires less capital compared to purchasing physical properties. This makes it more accessible to a wider range of investors, including those who may not have the substantial funds needed to buy real estate outright.
5. Professional Management: These real estate shares are managed by professionals with expertise in the real estate market. This can reduce the burden of property management and maintenance for individual investors, allowing them to benefit from real estate investments without the associated hassles.

Risks of Investing in Real Estate Stocks

1. Market Volatility: Real estate stocks, as with the general real estate market, have a high sensitivity level to economic cycles. During economic booms, stock markets, particularly real estate stocks, tend to gain substantially because of increased demand for property, higher rental income, and favourable terms in financing. On the flip side, real estate stocks dive during economic downswings, plunging consumer confidence, expensive borrowing, and fall in occupancy rates. This cyclical nature makes real estate stocks a potentially volatile investment, where timing and market conditions can greatly impact the performance of even the best REIT India to buy.
2. Regulatory Risks: Real Estate operates within a multifaceted regulatory environment, sometimes changing due to shifts in political climates and policy priorities. New laws and regulations in zoning, land use, environmental protection, and controls in the rental market can greatly affect the profitability and operational functionalities of real estate firms. These can include stringent environmental regulation, which increases costs to developers, and changes to rent control laws, which may impact income streams for real estate investment trusts (REITs), including even the top REITs in India. It is the responsibility—burden of investors—to be aware that regulations are under consideration for change and that they have the potential to influence the way that an investor’s real estate is held.
3. Interest Rate Risk: Interest rates are very fundamental in the real estate sector and can effect even the best real estate share to buy, as they determine the cost of borrowing for companies and consumers in general. Real estate development and activity undertaken by big real estate companies in India and REIT companies in India are majorly funded by borrowing, where debt financing is done for the development projects and acquisition, respectively. Higher interest rates result in higher borrowing costs; as such, those firms will consequently squeeze profit margins and even lessen their cash flow. What is more, higher mortgage rates, in tempering the residential market’s demand, could directly or indirectly impact firms involved in residential development and sales. On the other hand, low-interest rates can encourage borrowing and investment, benefiting real interest and shares of real estate. Investors who consider owning real estate stocks definitely should have a clear idea about the relationship between interest rates and the dynamics of the real estate market.
4. Operational Risks: The performance of real estate shares in India and REITs depends on the efficiency of their management. Poor management decisions, such as acquiring low-quality properties or inadequate maintenance, can negatively impact returns. Investors need to be cautious about the management track record of the companies they invest in.

Factors to Consider Before Investing in Real Estate Stocks

1. Company Performance: Evaluating the financial health and historical performance of even the top REITs is crucial. This includes analysing their revenue, profit margins, debt levels, and growth prospects. Real estate companies listed in NSE with strong financials and consistent performance may be better positioned to withstand market fluctuations.
2. Portfolio Diversification: Look at the diversity of the properties in the portfolio. A well-diversified portfolio of real estate stocks to invest in can mitigate risks associated with specific property types or locations. For instance, a REIT investment with a mix of commercial, residential, and industrial properties across different regions may offer more stability.
3. Dividend Yield: For listed REITs in India, including the top 10 REITs in India, consider the dividend yield as it indicates the income-generating potential of the investment. A higher dividend yield can be attractive, but it’s important to assess the sustainability of the dividends. Consistent and stable dividend payments over time can be a positive indicator.
4. Market Conditions: Stay informed about the current real estate market trends and economic conditions that could impact the sector. Factors such as property demand, rental rates, and economic growth can influence the performance of real estate stocks.
5. Management Team: The expertise and track record of the management team can play a significant role in the success of the investment. Experienced and competent management can effectively navigate market challenges and capitalise on opportunities.
6. Market research: You should conduct thorough research on the current state of the real estate market in India. It can be important to analyse trends, demand-supply dynamics, and factors influencing property values and thereby the realty sector stocks in India.
7. Economic conditions: Evaluate the broader economic conditions, including interest rates and inflation, as they can have implications for the real estate sector.
8. Regulatory environment: Stay informed about the regulatory framework governing real estate in India. Changes in regulations or policies can have a substantial impact on the industry.
9. Type of real estate stocks: Understand the specific focus of the real estate stocks under consideration, such as residential, commercial, or industrial. Different sectors may present varied risk-return profiles.
10. Location and geography: Analyse the geographical areas where real estate companies operate. Regional factors can influence property values and demand.
11. Development projects: If considering real estate investment companies in India involved in development projects, evaluate the progress and potential of these projects. Delays or issues can impact financial performance.
12. Debt levels: Consider the debt-to-equity ratio of real estate companies. High levels of debt can pose financial risks.
13. Risk tolerance: Evaluate your risk tolerance and investment horizon. Real estate investments can be subject to market volatility.
14. Liquidity: Check the liquidity of the stocks. High liquidity ensures ease of buying or selling shares without a significant impact on prices.
15. Long-term outlook: Recognise that real estate investments often require a longer investment horizon. Align your investment goals with the characteristics of the real estate market.

How to Invest in Real Estate Stocks?

1. Open a Demat Account: To buy real estate stocks or REITs, you need a Demat account with a brokerage firm. This account will hold your shares in electronic format, making transactions seamless and secure.
2. Research and Select: Conduct thorough research to identify the best real estate stocks or REITs that align with your investment goals. Consider factors such as company performance, dividend yield, and market conditions. Reviewing financial statements, market analyses, and industry trends can provide deeper insights into potential investments.
3. Diversify Your Portfolio: You can consider diversifying your investments across multiple real estate stocks or REITs, including the top REIT in India, to spread risk. Diversification can help mitigate the impact of poor performance by any single investment. By investing in various segments within the real estate sector, such as residential, commercial, and industrial properties, you can balance your portfolio more effectively.
4. Monitor and Review: Regularly monitor the performance of your investments and review your portfolio to make informed decisions. Keeping track of market trends and company news can help you stay updated and adjust your investment strategy as needed. Use analytical tools and resources to track key performance indicators and market movements.
5. Stay Informed: The real estate market is dynamic and influenced by various factors including economic conditions, interest rates, and regulatory changes. Staying informed about these factors can help you anticipate market movements and make timely decisions. Subscribing to financial news, attending webinars, and following expert analyses can provide valuable insights.
6. Consult Financial Advisors: If you are new to investing or unsure about your investment choices, consider consulting with a financial advisor. Advisors can offer personalised guidance based on your financial goals and risk tolerance, helping you navigate the complexities of the real estate market.

For all this, you can use Tickertape. With over 200 filters, custom filter feature, pre-built screens, stock universes, and more, Tickertape Stock Screener allows you to shortlist the best real estate stocks, including housing stocks, based on your preferences. You can also set alerts to stay updated with company’s latest news, announcements and more. Further, you can connect your portfolio and check if you have any weak performers. This can help you balance and spread your risk. Check now!

Overview of the Indian Real Estate Sector

The Indian real estate market is expected to expand from USD 0.33 trillion in 2024 to USD 1.04 trillion by 2029, with a CAGR of 25.60%. Key growth drivers include the rising demand for data centres and luxury homes, with a 130% increase in luxury home sales in the first half of 2023.

The Union Budget 2023-24 significantly boosts the sector with a Rs. 79,000 crore allocation for affordable housing under the Pradhan Mantri Awas Yojana. FDI policies have also been liberalized to encourage investment in the sector.

Further, the private equity investments reached US$ 4.2 billion in 2023, with FDI in real estate hitting US$ 58.5 billion from April 2000 to September 2023.

Investment Insights and Trends

The industry’s PE ratio stands at 68.1x, surpassing the 3-year average of 54.0x, indicating investor optimism. The sector’s transition into profitability is marked by a 26% annual growth in revenues. With SEBI’s approval, REITs present a significant opportunity, potentially worth Rs. 1.25 trillion, for investors looking for the best REIT stocks in India.

Well, these are enough reasons for an investor to consider investing in the sector. However, to invest in any sector or stock, a thorough analysis is required. For this purpose, Tickertape provides you with comprehensive research, analysis, and investing tools. 

With Tickertape Stock Screener, you can list stocks based on your preferred criteria. There are over 200 filters for you to choose from, along with pre-built screens, which make your analysis faster.

Further, the Scorecard on every asset page helps you dive deeper into the stock and analyse the stock based on quantitative factors such as profitability, performance, entry and exit points, valuation, and growth and provides a sneak peek into the potential red flags in the stock. Research, analyse, and invest quicker than before, because #TickertapeHaiNa! Become a Pro Member now!

Who Can Invest in Real Estate Stocks?

Investing in real estate stocks and REITs in India is accessible to a diverse range of investors, offering a practical way to gain exposure to the real estate market without the need for large capital or property management.

• Individual Investors: Young professionals, middle-income earners, and retirees can benefit from these investments. They offer regular income through dividends, lower entry barriers compared to physical properties, and greater liquidity.
• Institutional Investors: Mutual funds, pension funds, and insurance companies often invest in real estate stocks for portfolio diversification, stable returns, and asset-liability matching.
• Foreign Investors: NRIs and FIIs can access the Indian real estate market indirectly through these stocks, benefiting from market growth and streamlined regulations.
• Small and Medium Enterprises (SMEs): SMEs can diversify their investment portfolios and achieve stable returns by investing in real estate stocks.
• Retail Investors: Both new and experienced investors can find value in real estate stocks. New investors can learn and grow their portfolios, while experienced investors can enhance their strategies with high-performing real estate stocks and REITs.

Overall, real estate stocks and REITs offer a balanced investment option with the potential for income generation, diversification, and professional management, making them suitable for a wide range of investors.

Conclusion

Investing in real estate stocks and REITs in India can offer various benefits such as diversification, liquidity, and professional management. However, it is important to be aware of the associated risks, including market volatility and regulatory changes. Before making any investment decisions, thorough research and consideration of market conditions are essential.

Frequently Asked Questions About Real Estate Stocks

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Anjali Chourasiya

I am a finance enthusiast who loves exploring the world of money through my lens. I’ve been dedicated to building systems that work and curating content that helps people learn.

As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!

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