Rate Cuts to Revive Real Estate Stocks by 2026: Bernstein's Garre

• Bernstein's Venugopal Garre upgrades Indian real estate to 'outperform' for 2026, foreseeing a recovery driven by expected rate cuts and a "catch-up opportunity."
• Garre anticipates 50-basis point rate cuts this year, which could provide incremental support to real estate demand and valuations.
• The broader Indian equity market is downgraded to 'neutral' for 2026, citing fading growth momentum, limited upside (Nifty target 28,100), and high valuations.
• Concerns include moderating GDP growth to 6.5%, constrained government balance sheet, and modest RBI easing.
• Bernstein is cautious on consumer staples but remains constructive on financials, telecom, consumer tech, IT, and real estate.

Why It Matters: Real estate poised for 2026 recovery with rate cuts, but broader market faces growth headwinds.