Shares of Lodha Developers are down 3.5% and is the top loser on the Nifty Realty Index.
Shares of Oberoi Realty, Aditya Birla Real Estate and Godrej Properties are also trading with losses between 1% to 3% on Wednesday.
Why Mumbai-Based Real Estate Stocks Could Be Under Pressure?
Mumbai’s civic body, the Brihanmumbai Municipal Corporation (BMC), announced on Tuesday evening that it will be temporarily discontinuing water supply to construction sites.
In addition to this, approval for new water connections for construction sites has also been suspended on a temporary basis.
Temporary discontinuation of water supply to swimming pools and a 20% water cut in industrial and commercial water usage are also part of the BMC decisions.
Water is an important component of real estate construction as it will act as a binding agent for mortar and concrete, thereby preventing structural cracks and for long-term durability.
Why Did BMC Discontinue Water Supply For Construction Sites?
The decision has been taken by the BMC in light of the delay in the arrival of monsoon rains in the city.
On Monday, the India Meteorological Department (IMD) told CNBC-TV18 that the monsoon is likely to reach Mumbai by June 25.
In an interaction with CNBC-TV18 on Tuesday, GP Sharma of Skymet also said that he would not be surprised if the monsoon takes another 10 days to arrive in Mumbai. Skymet has also warned that Mumbai could witness its driest June in the last two decades.
As of 6 AM on June 16, the water level in the seven lakes that supply water to the city stood at 10.35%. At the same time last year, that figure stood at 8.6%.
Barring Oberoi Realty, which is up 2% for the year, the shares of the other Mumbai-based realtors are down anywhere between 10.5% (Godrej Properties), to as much as 22% (Aditya Birla Real Estate). Shares of Keystone Realtors are down 26% year-to-date, while Mahindra Lifespaces shares are also down 13% for 2026 so far.
