The Indian residential real estate market has remained resilient. Despite a high base to compare against, the housing demand remains stable across the large cities. In Axis Capital’s latest India real estate sector update, the group has retained four stocks as its favourite picks owing to robust housing absorption, increase in property prices and limited inventory.
The brokerage has suggested DLF, Prestige Estates Projects, Brigade Enterprises and Max Estates as its 4 key real estate stocks. As per the estimation of Axis Capital, stocks have up to 49 per cent upside based on its target prices.
Housing demand remains steady across top cities
Fact file The latest figures reveal a 4% annual increase in residential housing absorption in August 2026, compared to the same period in the previous year, to 59.4 million square feet. The increment was registered despite the sector having a relatively high base.
Another key trend Axis Capital points out is the demand from existing projects. Sustenance bookings were up 6% YoY at 53.7 million square feet and made up nearly 90% of the absorption for the month.
Meanwhile, average realisation grew 8% YoY to Rs 11,503 per square foot. Higher absorption and realisation growth resulted in an overall value of Rs 68,300 crore (+13% YoY) of residential sales across the 7 major markets.
DLF target price at Rs 1,000
Of the four real estate stocks featured by Axis Capital, DLF boasts the maximum upside as per the brokerage.
Axis Capital has set a target price of Rs 1,000 per share for DLF, which indicates an upside of 49% based on the level where the bank has placed the check.
Among these, DLF’s main market NCR saw a softer August. It saw a 42% YoY slide in new launches to about 4 msf. There was a 4% YoY de-growth in housing absorption to 6.6 msf.
That said, the inventory overhang at NCR has been rather modest. NCR had an estimated inventory overhang of 15 months, with some 49,000 units in inventory.
Prestige Estates gets Rs 2,060 target
Prestige Estates Projects is one of the real estate stocks which has been retained by the Axis Capital. The brokerage has kept the price target at Rs 2,060, a potential upside of about 40%.
The company has a presence in a number of large residential markets and the wider sector is seeing continuous demand for branded developers.
“Given the continued status quo in the consolidation in India’s housing market Axis Capital feels gradually consolidation in India housing market is enabling organised, listed and more established real estate companies to find buyers who are prepared to pay for a known developer.”
Brigade Enterprises target price at Rs 890
AXIS CAPITAL’S PICKS The other stock that I want to hold is this one from brigade enterprises, and the target price for this company is Rs 890, which translates to an upside of around 47% approximately with a brokerage estimate.
Bangalore continues to be a major market for us. In August, there were about 12 million sq ft launches in Bangalore – up 18% year-on-year.
The city’s overall housing absorption was roughly 10.4 million square feet, but was 5% below the same period last year. This was overall in line with the city’s long-term average.
Estimated stock in and around Bengaluru was approximately 157,000 units and the inventory overhang was about 16 months.
Max Estates has Rs 800 target
Max Estates has secured a listing at number four on the list of Axis Capital. The brokerage has set a price target of Rs 800 for the firm, indicating an approximate upside of 30%.
Sounds good, but the company expects solid residential demand as long as there is construction by developers and prices stay trending upward.
The brokerage also sees a further consolidation of the real estate market, which would be advantageous for firms with a solid brand, execution and listed market access.
Hyderabad and Mumbai outperform
In August, Hyderabad and the Mumbai Metropolitan Region were some of the more active markets, despite differences in their performance.
In Hyderabad, the housing uptake witnessed an absorption of about 13 million square feet, growth of 19% annually. In MMR, there was an absorption of about 15.4 million square feet, growth of 13% annually.
This was driven by improvement in project launches and appetite.
In contrast, absorption was lower in the National Capital Region as launches were relatively muted, while Bengaluru registered a slight year-on-year decline in absorption despite robust launches.
Real estate inventory remains under control
An important reason for Axis Capital’s view is the moderation of inventory levels in the largest Indian housing markets.
The inventory of the 7 top cities was estimated at about 634,000 units and the total inventory overhang was about 17 months in August.
Controlled inventory might be more valuable to developers as large inventory levels could influence pricing and cash flow. However, with the available market data, the balance of supply and demand for housing is still fairly even for several large markets.
What is driving the real estate sector?
There are a few factors which will underpin the current property cycle, such as robust demand for housing, rising property prices and active launch of new projects.
Sale of existing projects also played an important role. The absorption from new launches in August was down 12% year-on-year, but sale of existing projects was up 6%.
This shows that demand is not only driven by fresh launches and buyers are still buying in projects in the pipeline.
Future of DLF, Prestige, Brigade and Max Estates
Axis Capital’s fresh note points to a stable housing absorption, strong realisation and moderate inventory levels in the Indian residential property sector.
The brokerage has retained DLF, Prestige Estates Projects, Brigade Enterprises and Max Estates as its four-strong portfolio of preferred real estate stocks with target prices reflecting implied upside of 49%, 40%, 47% and 30%, respectively.
…but the targets are only brokerage estimates of potential performance and not assured returns. Reits are still exposed to the property cycle, interest rates, project viability, regulation, construction costs and wider market factors.
Disclaimer: Target prices, upside estimates and sector view as mentioned in this article are based on Axis Capital’s research report published on 30 September, 2026. These are not predictions, they should not be taken as investment advice and one should conduct their own due diligence or consult a professional financial adviser.
