Real Estate Mutual Funds: After years of stagnation, the real estate sector has regained momentum with record pre-sales, rising collections, and stronger balance sheets. Developers are launching more projects, buyers are returning in large numbers, and investors are paying attention.

In the past three years, many listed real estate firms have grown sales and profits by 20–30% annually, supported by premium launches, strong demand, and steady annuity income. Unlike the previous cycle, today’s growth is driven by cash flows and lower debt levels.

The real challenge for investors is to separate short-term momentum from long-term sustainable growth. Those who can identify companies with strong execution, financial discipline, and clear expansion plans are likely to gain the most. Let’s now check out the 5 best stocks to invest in the real estate sector.

1. Oberoi Realty:
Oberoi Realty is one of the most recommended mutual funds to invest in 2025. They operate across residential, office, retail, and hospitality. Its strategy balances cash-generating residential sales with long-term annuity income from commercial and retail assets. Over the past three years, sales and profits have compounded at 25% and 28%, respectively. In FY25, the company reported total income of ₹54.7 bn, net profit of ₹22.3 bn, and operating cash flows of ₹21.6 bn.

In Q1 FY26, revenue from operations stood at ₹9.9 bn, down 30% YoY due to a higher share of lower-margin rental income. Looking ahead, growth will be supported by launches in Gurgaon, Borivali, and Adarsh Nagar. Commerz III is nearing full occupancy, Sky City Mall is scaling up, and new towers in Thane with social infrastructure are planned. Expansion will be funded through cash flows and a ₹12.5 bn infusion in I-Ven Realty.

2. Godrej Properties:

Godrej Properties, one of India’s largest real estate developers, has built a strong reputation through quality execution, brand equity, and a pan-India presence. The company expanded via joint developments and acquisitions, creating a diverse portfolio across housing, office, and mixed-use projects. Over the past three years, it grew sales and profits at 39% and 55% annually. In FY25, it lifted total income by 57%, nearly doubled net profit, and increased collections by 49% to ₹170.5 bn, generating record operating cash flows of ₹74.8 bn.

In Q1 FY26, the company booked sales of ₹70.8 bn, down 18% YoY but sustaining a strong two-year CAGR of 77%. Management targets FY26 bookings of ₹325 bn, supported by a launch pipeline of over ₹400 bn in Bengaluru, NCR, and Mumbai.

3. Brookfield India Real Estate Trust:
Brookfield India Real Estate Trust, the country’s only 100% institutionally managed office REIT, owns marquee assets like Candor TechSpace, Downtown Powai, and Worldmark across Gurugram, Noida, Mumbai, and Kolkata. Anchored by global capability centres, BFSI, and tech tenants. The trust has delivered double-digit growth in net operating income and distributions over the past three years, driven by steady leasing and rental escalations. In FY25, committed occupancy rose 600 bps to 88%, in-place rents grew 16% to ₹97 per sq. ft. per month.

Also Read: Top 3 Indian Govt Stocks to Invest for High Returns in 2026

4. Brigade Enterprises:
Brigade Enterprises, one of India’s leading developers, has built marquee assets like Orion Mall and Brigade Gateway while expanding across housing, offices, retail, and hospitality with support from partners such as GIC. Over the past three years, the company has delivered strong double-digit growth in sales and profits. The company has driven by the robust residential demand and steady leasing and hospitality income. In FY25, it recorded its highest-ever pre-sales of ₹78.5 bn, up 31% YoY, with volumes of 7.05 msf. Brigade Hotel Ventures also aims to double its portfolio to 18 hotels in five years.

5. The Phoenix Mills:

The Phoenix Mills, India’s largest retail-led mixed-use developer, owns marquee assets like Phoenix Palladium, MarketCity malls in Bengaluru, Pune, and Chennai, along with newer destinations such as Phoenix Citadel. Over the past three years, it grew sales by 38% and profits by 58%, driven by strong consumption and disciplined execution. In FY25, revenue stood at ₹38.6 bn with EBITDA margins of 57%, while retail consumption touched ₹137.5 bn.

In Q1 FY26, consumption rose 12% YoY, though rental income grew only 4% as the company reshuffled tenants to attract stronger brands. Phoenix is now consolidating full ownership of the Island Star Mall platform through a ₹54.5 bn buyout of CPP Investments’ stake, funded entirely by internal accruals and platform-level cash flows.

Disclaimer: Mutual funds are subject to market risks. Please consult a financial expert before investing.

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