Nifty Realty P/E at 34.3: low on earnings, not on book

A fall in the ratio

Nifty Realty closed at 782.00 on Tuesday, 26 May 2026, at a price-to-earnings ratio of 34.30. Its price-to-book ratio was 3.75 and its dividend yield 0.38%.

These are NSE's published end-of-day ratios. The daily history is on the Nifty Realty valuation page.

Why this comparison starts in 2022

NSE moved its index P/Es to consolidated earnings on 31 March 2021. For Realty, that day the published P/E simply stopped: it is missing for the next two months. When it came back on 1 June 2021 it read above 21,000 for eight sessions, peaking at 23,307.57 on 10 June 2021, because the earnings under it were close to zero. It ran between 55 and 130 for much of the rest of that year.

Readings like that wreck a median. So the P/E comparison here starts on 1 January 2022, after the ratio settled: 1,082 sessions.

• P/E: only 28 sessions closed lower, every one of them since 4 March 2026. The low, 29.88, came on 23 March 2026.
• P/B: 374 sessions closed lower, about the 35th percentile. The low, 2.58, was on 31 March 2023.
• Dividend yield: 173 sessions yielded more.

On earnings, Realty is near the bottom of its four-year range. On book, it is in the lower middle.

The price fell, the earnings rose

The index peaked at 1,150.30 on 18 June 2024, at a P/E of 71.12 and a P/B of 7.16. Since then:

• the price is down 32.0%;
• the earnings behind it, price divided by P/E, are up about 41%;
• the book value behind it, price divided by P/B, is up about 30%.

Over the last year alone, from 26 May 2025, the price fell 17.2% while earnings rose about 12.0% and book about 20.6%.

The fall in the P/E from 71 to 34 is therefore about as much rising earnings as falling prices. The P/B fell less, because book grew almost as fast as earnings.

The March low and the rebound

Realty fell hard in the first quarter of 2026. From 877.95 at the end of 2025 it dropped to 651.15 on 30 March, down 25.8%. The Nifty 50 fell 14.5% over the same three months.

It has since recovered 20.1%, more than the Nifty 50's 7.1%, and is down 10.9% for the year so far.

Realty's P/E is now 1.67 times the Nifty 50's 20.60.

The housing indices

NSE also prices two broader housing baskets. Their histories here are shorter.

Medians run from each index's start: Realty from January 2022, Nifty Housing from 9 March 2022, Core Housing from 12 April 2023.

Nifty Housing is the least affected. It is 2.5% below its peak close of 12,386.31 from 26 September 2024, and its P/E sits around the 30th percentile of its own history. Its earnings grew about 24% over the year.

Nifty Core Housing sits between the two: 15.6% below its peak of 17,961.72 from 27 September 2024, with a P/E in the lowest fifth of its three-year record.

What this does not tell you

Realty earnings are small and lumpy. The earnings behind the index are about 23 points on a price of 782, and a single company's results can move them a lot. That is how the P/E reached the thousands in 2021.

The ratios step when the data updates. The book behind the index rose 8.3% on 11 July 2025 alone, with the price down 1.2%. Some steps may be changes in the index's members, which the published ratios cannot separate from results.

Cheaper than its recent past is not cheap. At 34 times earnings, Realty still costs two-thirds more than the Nifty 50.

These are indices, not funds. Housing and infrastructure funds hold much wider mixes than these baskets.

Where to go from here

The Nifty Housing and Core Housing pages carry their own daily series. Earlier in this series, Nifty Auto showed the opposite pattern, a rising P/E on falling earnings. The guide on REITs and InvITs covers the listed property route, and how to read an index P/E ratio covers the measure.