Oberoi Realty, Godrej Properties: Mumbai-based real estate under pressure; here is why

Shares of Mumbai real estate companies such as Oberoi Realty, Godrej Properties, Macrotech Developers (Lodha), Sunteck Realty, Keystone Realtors (Rustomjee), Arkade Developers, and Mahindra Lifespace Developers were trading lower on Wednesday, June 17.

This is because the Brihanmumbai Municipal Corporation (BMC) on Tuesday imposed a 20% cut in water supply to industrial, commercial, and sports establishments, as reservoir levels dropped to 10.35% due to the delayed monsoon.

This is because the Brihanmumbai Municipal Corporation (BMC) on Tuesday imposed a 20% cut in water supply to industrial, commercial, and sports establishments, as reservoir levels dropped to 10.35% due to the delayed monsoon.

The civic body also suspended water connections for construction projects and swimming pools, it said in a release.

The cuts will be effective from Wednesday.

The measures were announced following a review meeting about the water stock in reservoirs supplying water to the financial capital of the country.

The restrictions are aimed at safeguarding potable water supplies, and strict action will be taken against misuse or wastage of drinking water, the release said.

Why realty stocks are in focus

Mumbai-focused realty stocks are expected to be in the spotlight as the move has raised concerns over potential disruptions to construction activity, especially for ongoing and upcoming projects in the Mumbai Metropolitan Region (MMR).

If the restrictions remain in place for an extended period, developers could face delays in project execution, approvals, and handovers.

Mumbai is one of India's largest and most profitable residential real estate markets. If builders face difficulties in securing water supply for ongoing or new projects, construction activity could slow, leading to delays in project completion, customer handovers, and revenue recognition.

Developers with significant exposure to the Mumbai Metropolitan Region (MMR), such as Godrej Properties, Lodha Developers, Oberoi Realty, Macrotech Developers, and Prestige Estates Projects, may therefore remain on investors' radar.

From a market perspective, investors typically view such regulatory or infrastructure-related constraints as a near-term overhang on the sector because they can affect project launches, construction schedules, and cash flows.

However, the actual impact would depend on the duration of the restrictions, exemptions for ongoing projects, and any alternative arrangements made by the civic authorities.

How shares are performing?

Shares of Oberoi Realty were trading 2.54% lower at ₹1,661.50 apiece on the NSE, while Godrej Properties was down over 1% at ₹1,773.90. Arkade Developers was trading nearly 1% lower at ₹114.36 on the NSE.

Lodha Developers shares were trading at ₹902.40 apiece on the NSE, down 3.79%.

Real estate firms' sales rise to ₹1.48 lakh crore in FY26

Sales bookings of 11 major listed real estate firms rose 18% to ₹1.48 lakh crore last fiscal on better realisation, according to Anarock.

These 11 developers are Godrej Properties, Prestige Estates, DLF, Lodha Developers, Signature Global, Brigade Enterprises, Puravankara, Oberoi Realty, Kolte-Patil, Keystone Realtors, and Sobha Ltd.

Real estate consultant Anaorck in May 2026 said that the combined sales bookings of these 11 major listed real estate companies increased to Rs 1,48,158 crore last fiscal from Rs 1,25,841 crore in the 2024-25 financial year.

Anuj Puri, Chairman of Anarock Group, said, "The strongest growth was witnessed among developers with significant premium and luxury housing portfolios."

India's residential real estate market is increasingly being dominated by developers who have diversified beyond their 'home' markets to establish multi-regional footprints, the consultant noted.

Sales bookings of Godrej Properties increased to ₹34,171 crore in the 2025-26 fiscal from ₹29,444 crore in the preceding year.