Shares of several real estate companies surged sharply on Monday, lifting the Nifty Realty index to its highest level in nearly two weeks. The index rose about 2.6 percent in afternoon trade to touch 908, its strongest point in 13 sessions, with gains led by Anant Raj, Prestige Estates, DLF, and other major developers.
The rally was supported by three key factors: growing expectations of a rate cut by the US Federal Reserve, reports of upcoming changes to building bylaws in Uttar Pradesh, and renewed value buying after a period of correction in the sector.
The most immediate trigger for the rally came from global monetary expectations. The US Federal Reserve is scheduled to hold its policy meeting between September 16 and 17, and analysts increasingly expect the central bank to announce a rate cut. Weakening employment data in the United States, along with mounting political pressure from the Donald Trump administration, has strengthened forecasts of a policy shift.
Revised data from the Bureau of Labor Statistics indicated that the US economy may have created 911,000 fewer jobs in the past year than previously estimated. Market experts believe a Fed rate cut could be followed by a similar move from the Reserve Bank of India’s Monetary Policy Committee, which would directly benefit home loan borrowers. Lower interest rates reduce equated monthly installments, potentially stimulating housing demand and providing a positive outlook for real estate companies.
Domestic policy developments added to the momentum. A report suggested that the Uttar Pradesh government is considering changes to common building bylaws for Noida, Greater Noida, and the Yamuna Expressway Industrial Development Authority (YEIDA).
The proposed reforms would reportedly remove ground coverage limits and increase the permissible floor area ratio for residential, commercial, and industrial projects. Such changes are expected to simplify construction rules, reduce regulatory overlap, and encourage new investments in the state’s rapidly growing urban hubs. Developers such as DLF and Godrej Properties, which have a presence in the Noida and Greater Noida markets, could stand to benefit from these policy shifts if they are approved.
The third factor driving investor sentiment was the value-buying opportunity created by recent market weakness. The Nifty Realty index, despite Monday’s rebound, remains more than 20 percent below its 52-week high of 1140.4. The index has slipped nearly 10 percent over the past three months and is down around 13 percent in 2025 so far. This correction has created an entry point for investors, particularly those betting on long-term demand for residential and commercial real estate.
Among individual stocks, Anant Raj was the top gainer on Monday, climbing about 12 percent to trade at ₹598 per share. Reports that the government may consider a 20-year tax break for data centres further boosted sentiment around the company, which has been diversifying into that segment. Prestige Estates rose almost 3 percent to ₹1,593 per share, while DLF also gained around 3 percent to trade at ₹779. Phoenix Mills, Godrej Properties, Oberoi Realty, and Macrotech Developers (Lodha) advanced nearly 3 percent each. Sobha, Brigade Enterprises, and Raymond were also higher by about 2 percent apiece.
Market participants said the combination of external monetary signals, domestic regulatory reforms, and sector-specific value buying had aligned to produce the sharp rally. While the near-term direction will depend on the Federal Reserve’s decision this week and the RBI’s policy stance thereafter, analysts note that demand for housing and commercial space remains structurally strong in India’s largest urban markets. Developers with significant exposure to Noida and other NCR micro-markets are expected to watch closely for clarity on the Uttar Pradesh government’s proposed bylaw changes.
The Nifty Realty index ended the session as the top sectoral gainer, outpacing other indices. Traders and analysts alike said that while volatility may persist, the sector continues to attract attention as one of the more promising long-term plays in the Indian equity market.
.png)