Sectors & Industries Real EstateReal Estate - Development
Best Real Estate Development Stocks to Buy Now (2025)
Top real estate development stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best real estate development stocks to buy now. Learn More.

Industry: Real Estate - Development

Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Real Estate Development is Zen Rated D and is the 116th ranked industry out of 145 stock market industries

Ticker	Company	Price	Graham Fair Value	Graham Fair Value %	P/E	Forward P/E	P/S	P/B	PEG	Free Cash Flow	Free Cash Flow Yield	Book Value	BVPS	EV	EV/EBITDA
FPH	FIVE POINT HOLDINGS LLC	$5.26	$25.73	-79.56%	4.11x	N/A	3.24x	1.01x	0.10x	$198.38M	25.36%	$774.33M	5.21	$781.49M	5.43
AXR	AMREP CORP	$22.55	$74.85	-69.87%	9.24x	N/A	2.07x	0.95x	0.13x	$14.34M	11.96%	$125.98M	23.68	$81.87M	6.10
SDHC	SMITH DOUGLAS HOMES CORP	$19.45	N/A	N/A	10.69x	12.82x	0.18x	13.58x	N/A	$15.25M	8.86%	$73.63M	8.32	$980.96M	37.61
FOR	FORESTAR GROUP INC	$19.26	N/A	N/A	5.82x	6.51x	0.67x	0.60x	N/A	-$404.90M	-41.38%	$1.64B	32.38	$1.68B	7.42
OZ	BELPOINTE PREP LLC	$62.25	N/A	N/A	-9.49x	N/A	84.69x	0.78x	N/A	-$151.53M	-66.91%	$301.78M	82.95	$390.69M	-46.87
VTMX	VESTA REAL ESTATE CORPORATION SAB DE CV	$27.42	$36.72	-25.33%	21.32x	11.92x	9.20x	0.95x	0.33x	-$83.21M	-3.50%	$2.51B	28.88	$3.13B	7.06
LSEA	LANDSEA HOMES CORP	$6.10	$8.37	-27.14%	12.71x	9.04x	0.14x	0.33x	0.39x	$23.74M	10.74%	$667.18M	18.40	$889.73M	27.18
SGD	SAFE & GREEN DEVELOPMENT CORP	$0.92	N/A	N/A	-0.09x	N/A	4.03x	2.83x	N/A	-$3.10M	-370.95%	$621.62k	0.68	$11.66M	-2.15
JFB	JFB CONSTRUCTION HOLDINGS	$4.13	N/A	N/A	206.50x	N/A	1.40x	6.04x	N/A	$2.66M	8.26%	$6.33M	0.81	$35.51M	107.17
MRNO	MURANO GLOBAL INVESTMENTS PLC	$9.81	N/A	N/A	N/A	N/A	21.66x	2.49x	N/A	-$68.95M	-8.87%	$311.58M	3.93	$1.29B	-18.17
XIN	XINYUAN REAL ESTATE CO LTD	$2.51	N/A	N/A	-0.28x	N/A	0.03x	-0.14x	N/A	$17.61M	125.02%	-$104.17M	-18.56	$1.67B	13.80
ARL	AMERICAN REALTY INVESTORS INC	$12.09	N/A	N/A	-13.29x	N/A	4.13x	0.32x	N/A	-$55.50M	-28.42%	$601.82M	37.26	$340.20M	165.07
AEI	ALSET INC	$0.95	N/A	N/A	-2.21x	N/A	0.42x	0.13x	N/A	$5.05M	57.58%	$81.33M	8.81	-$15.51M	12.03
LRE	LEAD REAL ESTATE CO LTD	$1.24	$5.02	-75.31%	4.01x	N/A	0.13x	0.61x	0.14x	-$4.27M	-25.81%	$27.88M	2.09	$84.50M	11.68

Real Estate Development Stocks FAQ

What are the best real estate development stocks to buy right now in May 2025?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best real estate development stocks to buy right now are:

1. Five Point Holdings (NYSE:FPH)

Five Point Holdings (NYSE:FPH) is the #1 top real estate development stock out of 14 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Five Point Holdings (NYSE:FPH) is: Value: C, Growth: B, Momentum: A, Sentiment: C, Safety: C, Financials: C, and AI: C.

Five Point Holdings (NYSE:FPH) has a Due Diligence Score of 41, which is 15 points higher than the real estate development industry average of 26.

FPH passed 13 out of 33 due diligence checks and has strong fundamentals. Five Point Holdings has seen its stock return 85.21% over the past year, overperforming other real estate development stocks by 104 percentage points.

2. Amrep (NYSE:AXR)

Amrep (NYSE:AXR) is the #2 top real estate development stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Amrep (NYSE:AXR) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: D, Financials: C, and AI: C.

Amrep (NYSE:AXR) has a Due Diligence Score of 53, which is 27 points higher than the real estate development industry average of 26.

AXR passed 17 out of 33 due diligence checks and has strong fundamentals. Amrep has seen its stock return 11.17% over the past year, overperforming other real estate development stocks by 30 percentage points.

3. Smith Douglas Homes (NYSE:SDHC)

Smith Douglas Homes (NYSE:SDHC) is the #3 top real estate development stock out of 14 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Smith Douglas Homes (NYSE:SDHC) is: Value: C, Growth: C, Momentum: D, Sentiment: C, Safety: C, Financials: B, and AI: C.

Smith Douglas Homes (NYSE:SDHC) has a Due Diligence Score of 33, which is 7 points higher than the real estate development industry average of 26.

SDHC passed 11 out of 33 due diligence checks and has average fundamentals. Smith Douglas Homes has seen its stock lose -33.09% over the past year, underperforming other real estate development stocks by -14 percentage points.

Smith Douglas Homes has an average 1 year price target of $27.50, an upside of 41.39% from Smith Douglas Homes's current stock price of $19.45.

Smith Douglas Homes stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Smith Douglas Homes, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Are real estate development stocks a good buy now?

50% of real estate development stocks rated by analysts are a hold right now. On average, analysts expect real estate development stocks to rise by 36.14% over the next year.

14.29% of real estate development stocks have a Zen Rating of A (Strong Buy), 0% of real estate development stocks are rated B (Buy), 57.14% are rated C (Hold), 14.29% are rated D (Sell), and 14.29% are rated F (Strong Sell).

What is the average p/e ratio of the real estate - development industry?

The average P/E ratio of the real estate - development industry is 11.43x.

What are the most undervalued real estate development stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued real estate development stocks right now are:

1. Forestar Group (NYSE:FOR)

Forestar Group (NYSE:FOR) is the most undervalued real estate development stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Forestar Group has a valuation score of 43, which is 10 points higher than the real estate development industry average of 33. It passed 3 out of 7 valuation due diligence checks.

Forestar Group's stock has dropped -37.85% in the past year. It has underperformed other stocks in the real estate development industry by -19 percentage points.

2. Five Point Holdings (NYSE:FPH)

Five Point Holdings (NYSE:FPH) is the second most undervalued real estate development stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Five Point Holdings has a valuation score of 57, which is 24 points higher than the real estate development industry average of 33. It passed 4 out of 7 valuation due diligence checks.

Five Point Holdings's stock has gained 85.21% in the past year. It has overperformed other stocks in the real estate development industry by 104 percentage points.

3. Amrep (NYSE:AXR)

Amrep (NYSE:AXR) is the third most undervalued real estate development stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Amrep has a valuation score of 71, which is 38 points higher than the real estate development industry average of 33. It passed 5 out of 7 valuation due diligence checks.

Amrep's stock has gained 11.17% in the past year. It has overperformed other stocks in the real estate development industry by 30 percentage points.

Why are real estate development stocks down?

Real estate development stocks were down -1.17% in the last day, and up 0.55% over the last week.

We couldn't find a catalyst for why real estate development stocks are down.

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Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.