Real estate stocks see worst day in six months

The shares of the real estate companies of the Indian equity market have recorded a sharp decline on January 20, 2026. The NiftyRealty Index suffered a huge loss of more than 4%, recording 789.90 points in the current trading session. This downfall has made the realty index the biggest loser among the sectoral indices of the trade session. A Money Control report said that the loss was majorly due to the fall in the stock prices of Oberoi Realty in Q3FY26. 

As per the report, the Nifty Realty Index of the Indian equity market has emerged as the biggest loser for the third time. The sector has recorded decline in nine out of 10 trading sessions. The total sectoral decline has reached 13%. 

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Decline in Oberoi Realty

Oberoi Realty has recorded a sharp decline in its net profit in Q3FY26, impacting NiftyRealty the most. Its share prices have declined by 9%, selling each stock at ₹1,510.90. The company recorded a net profit of ₹622.64 crore in October-December quarter of the current fiscal. Although this was a marginal rise of 0.69 per cent from ₹618.38 core profit earned in Q3FY26, 18% QoQ fell, recording ₹1,492.64 crore. The QoQ saw a sharp decline in the Q3FY26 from 7% in Q3FY25. 

However, Oberoi’s YoY recorded a rise of 6 per cent, according to Money Control.

Oberoi Realty has also released its third interim dividend of ₹2 per equity share in the Q3FY26. The eligibility of the shareholders who will be paid the dividend will be decided on January 23. The payment of the dividend will be done to the eligible shareholders on or before February 5, 2026.

Oberoi’s Chairman & Managing Director, Vikas Oberoi is still optimistic about the future trades. He told Money Control, “In 2026, we will continue to actively pursue attractive land opportunities, and we remain optimistic about the year ahead, supported by a strong development pipeline, prudent capital management, and our unwavering focus on creating future ready projects aligned with long-term market demand”

While Oberoi recorded the biggest loss, Sobha, Prestige Estates and Macrotech Developers (Lodha) shares fell by 6 per cent each. Heavyweight real estate companies like Godrej Properties and DLF also recorded losses, with a decline of 5 per cent and 3 per cent in stock prices, respectively. Anant Raj and Phoenix Mills shares declined by 3 per cent and Brigade Enterprises and Signature Global are also trading with marginal losses. 

Reasons Behind the Loss

Money Control reported that the realty shares declined majorly because of the IT layoffs. The layoffs, increased since 2024, will spread its cross hairs in this year, too. As a result, the demand of the real estate companies in the urban luxury sector of Bangalore and Hyderabad will see a sharp decline. Due to job uncertainty, IT employees will not be able to afford housing sales or upgrade to luxury sectors. Rather, analysts told MoneyControl, the professionals might shift to rents. Shashank Gupta, Director, RPS Group, told Money Control that the mid-premium housing sales have already declined by 15% due to previous layoffs.