Real estate stocks saw sharp gains on Thursday, a day after business updates from property developers Macrotech, Sobha and Phoenix Mills showed robust demand despite red-hot raw material inflation. Signs of strong demand in the industry boosted the entire real estate basket, helping Nifty Realty clock its biggest jump in more than two weeks.

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The realty index tracks the performance of 10 stocks, including Godrej Properties, DLF, Prestige, Brigade and Oberoi Realty.

Sobha achieved its highest ever sales in a quarter, in terms of volume as well as value, according to a regulatory filing. The Bengaluru-based real estate company's sales volume touched a record 1.36 million square feet in the April-June period, up 51.7 percent compared with the corresponding period a year ago.

In terms of value, the company's total sales jumped 67.7 percent on year to Rs 1,145 crore.

Sobha's average price realisation — a key metric for property developers that determines the selling price per unit of a product — improved to Rs 8,431 per square foot from Rs 7,626 a square foot in the year-ago period.

The launch of three projects helped Sobha take its sales volume as well as value from the Bengaluru market to a record level.

Sobha continued to see strong demand across segments particularly in Bengaluru and Gurugram with strong cash flows helping it reduce its debt further, according to the filing.

Macrotech Developers (Lodha) posted strong pre-sales, with a nearly three-fold jump in the April-June period to Rs 2,814 crore from Rs 957 crore in the year-ago period, according to a filing. Its collections increased 53 percent on year to Rs 2,616 crore.

The company's net debt from its India business came down to Rs 8,858 crore, 28 percent lower compared with the year-ago period. On a sequential basis, the net debt came down by five percent.

Preliminary data from realty companies on their performance in April-June comes ahead of the onset of the earnings season, at a time when the RBI has hiked the key interest rate by 90 basis points from a record low during the pandemic.

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