Realty Stocks Decline Up to 28% in January Ahead of Budget 2026
**Market Brief: Realty Sector Under Pressure**
**Current Snapshot: January 2026 Slump**
The Indian real estate sector faces renewed volatility as the Nifty Realty index records a sharp correction of approximately **12.3%** in January 2026. As of late January, the index hovers near **776**, erasing gains from late 2025. This downturn marks the index's tenth consecutive session of losses, dragging it down roughly **23%** from its recent 52-week highs.
**Historical Context: A Recurring Seasonal Weakness**
This year's performance mirrors a historical trend of sluggish starts for the sector. January 2026 now rivals January 2025, which previously held the record for the steepest monthly decline at **12.45%**.
Data from the past six years highlights this recurring January weakness:
* **2026:** Down ~12.3% (Current)
* **2025:** Down 12.45%
* **2024:** Up >9% (The lone outlier)
* **2023:** Down 4.69%
* **2022:** Down 0.81%
* **2021:** Down 2.61%
**Key Drivers & Stock Movements**
Market sentiment remains dampened by pre-budget caution and concerns over sustainable demand. Major constituents like **DLF**, **Godrej Properties**, and **Lodha Developers** have witnessed significant corrections, trading near or at their 52-week lows. Newly listed players such as **Signature Global** have also seen steep declines, shedding over **20%** year-to-date.
Investors are currently adopting a wait-and-watch approach, looking to the upcoming Union Budget for potential relief measures, particularly regarding affordable housing definitions and tax deductions on home loans.