Elara Securities Bullish on India's Luxury Real Estate as Premium Housing Drives 39% Presales Growth

Elara Securities has expressed strong optimism about India's real estate sector, highlighting that the luxury and premium housing segments are driving significant market momentum. The brokerage firm noted that demand continues to remain robust, particularly in major metropolitan cities, where established developers are spearheading new project launches and achieving remarkable presales growth.

Premium Segment Leads Market Recovery

The securities firm reported that demand in the luxury and premium housing segments has witnessed meaningful expansion over the past year. This growth has been attributed to increasing disposable incomes among urban consumers, rising aspirational homebuyer behavior, and a pronounced preference for luxury homes in Mumbai and other major cities from branded developers.

Among India's leading seven real estate markets, absorption rates for newly launched homes have increased significantly during the first half of calendar year 2025. Notably, luxury properties are contributing a disproportionately large share to this growth trajectory.

Presales Register Strong Growth

The brokerage highlighted that presales for publicly listed developers surged by 39 percent year-over-year in the first quarter of FY26. The firm emphasized that much of this impressive growth stems from premium and luxury project launches across key markets.

Despite an increase in new project launches, inventory levels in the luxury and premium housing segments remain at comfortable levels, indicating that supply has not drastically outpaced demand in this particular market segment.

Supportive Market Environment

Elara Securities identified several macro-environmental factors that are providing support to the sector's growth. These include steady job creation in urban India, somewhat improved affordability metrics for potential buyers, and a notable shift in consumer preference toward larger, higher-quality residential properties.

The firm also noted that real estate investment hotspots continue to attract significant investor attention, particularly in metro markets where infrastructure development is accelerating.

Developer Focus and Strategic Positioning

The securities firm specifically highlighted developers such as DLF, Macrotech Developers, and Prestige Estates as being well-positioned to capitalize on current market trends. These companies are strategically anchoring their new projects around premium and luxury offerings, especially in high-growth metropolitan areas including Mumbai real estate market and Pune real estate investments.

Positive Sector Outlook

Looking ahead, Elara Securities maintains that the luxury housing segment appears set to continue serving as the primary anchor for real estate sector momentum. The brokerage firm has maintained its bullish stance on the broader real estate cycle, projecting strong earnings potential for well-capitalized developers who focus on branded, quality residential properties.

The firm's analysis suggests that developers with strong balance sheets and established brand recognition in the premium segment are likely to benefit the most from the ongoing market dynamics. This trend aligns with broader consumer preferences for gated communities and modern living solutions offered by reputable developers.