With global trade tensions and spiralling housing prices raging, residential sales were markedly tepid in H1 2025, when compared to the corresponding period last year. However, listed developers remain on track with their pre-sales targets, finds data compiled by Anarock Research. Investor presentations and regulatory filings of the top 10 listed developers show that almost 30 per cent (Rs44,317 crore) of the total booking (pre-sales guidance) targets of Rs1,49,108 lakh crore for 2025-26 is already squared away in the first quarter itself. And, they are on track to achieve their booking targets of over Rs1.49 lakh crore in 2025-26.
“Players like DLF Ltd and Prestige Estates are cases in point, with DLF hit-ting nearly 52 per cent of its total pre-sales target of Rs20,000-22,000 crore for 2025-26 in Q1 itself,” says Anuj Puri, chairman, Anarock Group. “Prestige Estates too has already clocked pre-sales of nearly 45 per cent of its Rs27,000 crore target for 2025-26”.
The top 10 listed developers’ booking targets in 2024-25 stood at about Rs1,20,818 crore. In short, they are targeting pre-sales growth of 23 per cent over 2024-25 in the current fiscal.
In terms of actual annual sales bookings in 2024-25, Godrej Properties led the pack in the last fiscal, with pre-sales of nearly Rs29,444 crore, followed by DLF, with sales bookings of about Rs21,233 crore.
The listed players’ pre-sales actuals achieved in 2024-25 have set the tone for 2025-26. “Buoyed by the sales momentum, they have continued the land buying spree of H1 2025, when over 2,898 acres of land were trans-acted in 76 deals across India,” adds Puri. “The total land volume transacted in H1 2025 is already 1.15 times in deal volume for the whole of 2024, when 133 deals for about 2,515 acres were concluded across the country”.
After the NBFC crisis in 2018 and the ensuing pandemic disruptions, developers faced funding crunches and declining sales. Many, especially the large and listed ones, focused on de-leveraging, improving pre-sales, monetising assets and raising equity capital. As a result, several top developers have brought down their net debt-to-equity ratios, with some even achieving net cash positions.
In a new phase of exceptional financial prudence, the average net debt-to-equity ratio of leading listed players has dropped to a historic low of 0.05 in 2024-25. This marks an over 90 per cent reduction from the 2016-17 peak of about 0.55. The average net debt-to-equity ratio declined from ~0.55 in 2016-17 to 0.05 in 2024-25. This was primarily aided by fundraising and improved operational cash flows.
A pivotal shift
The real estate sector’s shift from leverage-led to balance-sheet-led growth marks a pivotal shift in its investment appeal and operating model. With near-zero debt levels, improving buyer sentiment, and favourable monetary policy positions, 2025-26 sees the industry in a stable, trust-driven, performance-led cycle that has long-term potential.
“This deleveraging phase will positively impact real estate development in India over the long term,” affirms Puri. “With debt-equity ratios at multi-year lows and equity capital continuing to flow in, developers can expand strategically, consolidate market share, and build consumer trust”.
The improved financial metrics also make the Indian real estate sector more attractive to institutional and foreign investors, which bodes well for capital formation in the medium term. The sharp decline in leverage has provided multiple advantages to developers – one of them being a lower interest burden. Lower financing costs have freed up capital for ongoing and new projects. Many developers have received rating upgrades, facilitating access to institutional funding at more competitive rates. Besides, Buyers are increasingly favouring financially sound developers, further supporting their pre-sales momentum.
With some large developers now possessing net cash balances, the collective goal is now to keep the net debt-to-equity ratio under 0.4. And, more players are targeting a net cash position over the next three fiscal years.
Meanwhile, the Anarock Consumer Sentiment Survey for H1 2025 reveals that skyrocketing home prices across cities have been a major pain point for Indian home-seekers over the past few years – but with notable exceptions. “City-wise trends indicate that, while residential property-seekers across cities are concerned about the rising prices in their respective cities, MMR has emerged as a surprising outlier,” informs Puri. “In India’s most over-the-top expensive real estate market, just 39 per cent of our respondent property-seekers expressed high concern about the steep prices in the region. The remaining 61 per cent have equally surprising takes – 20 per cent are not at all concerned, and 41 per cent only moderately so”.
MMR has near-matchless market fundamentals, long-term capital appreciation driven by a lack of land, the highest annual inward migration in the country, and constant infrastructure upgrades. However, such a high level of buyer confidence is still interesting in a region with the highest average housing prices across all Indian cities.
City-wise trends indicate that, while residential property-seekers across cities are concerned about the rising prices in their respective cities, MMR has emerged as a surprising outlier
Nevertheless, the currently blowing global headwinds have left their mark, and several respondents admit that their home-buying decisions have been affected. The survey finds that rising home prices are a major concern for over 81 per cent polled property seekers polled across India. This stands to reason – Anarock Research finds that the top seven cities have seen average residential prices rising by over 50 per cent in the last two years (from Rs6,001 per sq ft in Q2 2023 to Rs8,990 per sq ft by Q2 2025)