Nifty Realty Cracks 3 Per Cent, Emerges Top Sectoral Loser: Here’s Why

Of the 13 major sectoral indices, Nifty Realty bled the most on the very fist trading session of the new financial year (FY26), April 1, 2025. Among the index’s constituents, Oberoi Realty fell the most, declining 3.94 per cent. It was followed by Godrej Properties, Prestige Estates Projects, and Macrotech Developers, which tumbled 3.93 per cent, 3.83 per cent, and 3.33 per cent, respectively.

The other constituents of the 10-stock index such as DLF, Sobha, The Phoenix Mills, Anant Raj, Raymond, and Brigade too fell in the range 1.5 per cent to 3 per cent. Effectively, all 10 stocks within the index posted losses in today’s trade.

Why Realty Stocks Fell Today

Revised RR Rate: Vinod Nair, Head of Research, Geojit Investments explained that real estate stocks fell because Maharashtra government raised the ready reckoner (RR) rates, which affect property valuations.

The RR rate, also called the 'circle rate,' 'collector rate,' or 'guidance value' in different parts of India, is the minimum price at which a property can be registered in a specific area. It is set by the government or local authorities and is revised regularly, usually every year. It primarily serves as a guide for property transactions and is used to calculate stamp duty and registration fees.

The Maharashtra government’s updated RR rates for the financial year 2025-26 (FY26) took effect today, April 1. This is the first hike in two years. The is expected to push property prices higher and hurt the affordable housing segment. Mumbai's property prices are already at premium levels, and the newly revised RR rates across the state could make owning a home even more expensive.

Falling Demand For Houses: Apart from this, housing brokerage Anarock, a week ago, reported that housing sales are likely to fall 28 per cent in January-March period. The total sales are estimated to be around 93,280 units, down from 1,30,170 units during the same period last year.

According to Anarock, the skyrocketing residential prices coupled with geopolitical headwinds have slowed the Indian housing market's bull-run during the period.