Why Has Nuvama Turned Cautious on Oberoi Realty Despite Healthy Housing Demand?
About Oberoi Realty
Oberoi Realty is one of Mumbai’s leading premium real estate developers with a strong presence across residential, office, and retail assets. The company is known for its execution quality, marquee projects, and a steadily expanding annuity portfolio.
Nuvama Institutional Equities has maintained a Hold rating on Oberoi Realty while reducing its target price to ₹1,719 from ₹1,794, reflecting near-term execution softness and cautious assumptions on volume momentum.
Q3FY26 Performance Snapshot
🔹 Pre-sales declined sharply due to absence of new launches
🔹 Collections weakened sequentially
🔹 Residential volumes remained soft during the quarter
The brokerage highlighted that the weak quarterly performance was largely attributable to a lack of fresh residential launches rather than a deterioration in underlying housing demand.
Investors tracking real estate stocks alongside broader indices often align exposure using Nifty Trading View.
Demand and Pricing Trends
| Parameter | Observation |
|---|---|
| Housing demand | Remains healthy |
| Project pricing | Confirmed hikes in Goregaon & Borivali |
| Volume momentum | Soft due to launch timing |
Despite weak quarterly volumes, Nuvama believes pricing power remains intact in key micro-markets, supporting realizations over the medium term.
|
Annuity Portfolio Positives
🔹 Rising occupancies in office assets 🔹 Improving mall occupancy levels 🔹 Stable rental income outlook |
Areas of Caution
🔻 Weak residential volumes in Q3 🔻 Softer MMR volumes 🔻 Affordability concerns in NCR |
The Borivali mall continues to show improving traction, with Nuvama expecting further occupancy improvement over the next two quarters.
Outlook and Valuation View
Nuvama remains cautious in the near term, awaiting clearer visibility on launch momentum. The brokerage has also reduced its NAV premium assumption, factoring in softer volumes in the Mumbai Metropolitan Region and affordability pressures in NCR, despite a strong residential launch pipeline ahead.
Broader sector sentiment may be tracked alongside BankNifty Trading View.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes Oberoi Realty remains structurally strong due to its premium asset base and annuity stability. However, near-term caution is warranted until residential launch momentum revives meaningfully. Investors should track execution on upcoming launches and sustained demand in key micro-markets. More informed insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Oberoi Realty
Why did Oberoi Realty pre-sales decline in Q3FY26?
What is Nuvama’s target price for Oberoi Realty?
Is housing demand still strong in Mumbai?
How is Oberoi Realty’s annuity portfolio performing?
What are the risks for Oberoi Realty stock?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
