The realty sector in India has been one of the most important sectors, and when it comes to employment generation, it comes right after agriculture. This sector is poised to reach $1 trillion in market size by 2030. As the industry grows, it offers opportunities for investors, and if you are one of them want to invest in the realty sector, then this article can be for you. 

This article will be about the S&P BSE Realty Index, its constituents, performance over different periods, risk factors, and more. 

S&P BSE REALTY Index – Overview & Constituents 

The S&P BSE Realty index tracks the performance of the real estate sector in India. It is a 10-stock index which are from the BSE 500 universe engaged in the realty business. It was launched in the year 2007. It helps understand how the overall real estate sector is performing in India, analyzing stocks from the sector, keeping the index as a benchmark for returns, and other factors, and one can also invest in the index itself via ETFs and index funds. 

The S&P BSE Realty index stocks list includes – (As of 15 April 2025)

ANANT RAJ LIMITED

BRIGADE ENTERPRISES LTD.

DLF LTD.

GODREJ PROPERTIES LTD

Macrotech Developers Limited

OBEROI REALTY LTD.

PRESTIGE ESTATES PROJECTS LTD.

SIGNATUREGLOBAL (INDIA) LIMITE

SOBHA

THE PHOENIX MILLS LTD

The stocks by weightage – 

Stocks	Weight in the Index (%)
DLF Ltd.	21.68
Macrotech Developers Limited	16.76
The Phoenix Mills Ltd.	15.27
Godrej Properties Ltd.	11.72
Prestige Estates Projects Ltd.	10.03
Oberoi Realty Ltd.	9.15
Brigade Enterprises Ltd.	6.91
Anant Raj Ltd.	3.28
Sobha	2.93
SignatureGlobal (India) Ltd.	2.27

Selection Criteria

The stock selection criteria for the equity index S&P BSE Realty index include – 

• Stocks are selected as per average float-adjusted market capitalisation until 90% market coverage is achieved at the least
• The minimum trading frequency of the constituent stocks has to be 90% in the previous six months
• For non-constituent stocks, to be included in the index, it must fall within 88% coverage, while for an existing stock to be excluded, it must be above 92% coverage. However, this is a buffer criterion. 
• The stocks are chosen from the real estate stocks of the BSE 500. 

Factors Affecting the S&P BSE REALTY Index

The factors that affect the S&P BSE Realty index include – 

• Economic Factors: Real estate and the economy have a positive correlation. When the economy booms, people have higher income, and then the demand for real estate increases and vice versa. 
• Interest rate: The second major reason is the interest rate for home loans and business loans, as that will decide the demand for the properties to be purchased. When the interest rates are high then the demand falls and vice versa. 
• Infrastructure spending: When the government spends on developing infrastructure, it helps the companies involved to prosper, and thus the index also moves along. 
• Population Growth and Demographics: India has the highest population in the world at present, and it is one of the youngest countries as the majority of the population is in their 20s-40s. This also indicates the growth prospects for the sector, which can have an impact on the index as well. 

S&P BSE REALTY Index Calculation Method

For the S&P BSE Realty index, the stocks are selected based on average float-adjusted market capitalization and then weighed by float-adjusted market capitalization. 

For assigning weights, you need to keep in mind that no individual stocks should have more than 33% of the weight, and the top three stocks together shouldn’t have more than 62% of the weight of the index. 

The formula to derive the index value – 

S&P BSE Realty Index Value = Index Market Value / Divisor

Here divisor is the base value, which is 1000. 

Performance and Returns

Here are the returns for different periods – 

Period	Price Return (%)	Total Return (%)
YTD	-19.83	-19.82
1 Year	-7.13	-6.88
5 Years	37.29	37.70
10 Years	14.77	15.33
3 Months	-19.83	-19.82
1 Month	6.63	6.63

Enjoy investing in the top stocks of the BSE 500 universe with the S&P BSE Realty index on the Shoonya App!

Risk and Volatility

S&P BSE Realty invests particularly in the real estate sector, which makes it a bit more risky than diversified indices.

Here are the details of Annualised Risk and Annualised Risk-adjusted Return generated by the index – 

Period	Price Return (%)	Total Return (%)
Annualised Risks
1 Year	26.77	26.76
3 Years	26.27	26.28
5 Years	35.88	35.87
10 Years	32.60	35.57
Annualised Risk-Adjusted Returns
1 Year	-0.27	-0.26
3 Years	0.81	0.82
5 Years	1.04	1.05
10 Years	0.45	0.47

How to Invest in the S&P BSE REALTY INDEX?

You can invest in the S&P BSE Realty Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade S&P BSE Realty Index futures and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps – 

• Open the Shoonya app.
• Head to the “Watchlist” tab located at the bottom of your screen.
• In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
• Once you find your desired index, click on the add option given on the right side.
• Now you can see the index on the watchlist. 

Conclusion

The S&P BSE Realty Index has been pivotal in realty investments as investors investing in this sector often keep this index as the benchmark. The index shows that the realty sector has been performing well, especially in the long run, while in the past few months, it was down, which can also be attributed to the volatile and sluggish overall markets. 

S&P BSE Realty Index | FAQs

Source: BSE

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.