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

Overview Zen Rating Price Value Growth Financials

Momentum Sentiment Forecast Dividends Due Diligence

Real Estate Development is Zen Rated F and is the 117th ranked industry out of 145 stock market industries

Ticker	Company	Market Cap	ROE	ROA	ROCE	ROIC	D/E	Current Ratio	Gross Margin	Profit Margin	Operating Margin
FPH	FIVE POINT HOLDINGS LLC	$776.77M	12.20%	2.90%	N/A	3.90%	1.19	N/A	50.80%	37.00%	51.95%
AXR	AMREP CORP	$120.34M	10.60%	10.20%	N/A	14.80%	0.02	N/A	35.20%	22.30%	22.81%
SDHC	SMITH DOUGLAS HOMES CORP	$1.01B	24.40%	3.60%	N/A	6.00%	1.01	N/A	26.20%	1.60%	2.42%
FOR	FORESTAR GROUP INC	$984.97M	10.60%	5.80%	N/A	6.60%	0.85	N/A	22.90%	11.40%	15.14%
OZ	BELPOINTE PREP LLC	$234.58M	-7.70%	-4.90%	N/A	-2.30%	0.71	N/A	-155.70%	-891.80%	-517.72%
VTMX	VESTA REAL ESTATE CORPORATION SAB DE CV	$2.38B	7.90%	5.20%	11.69%	9.90%	0.55	1.13	90.20%	79.80%	170.70%
LSEA	LANDSEA HOMES CORP	$216.17M	2.60%	1.00%	N/A	1.20%	1.54	N/A	14.70%	1.10%	1.64%
SGD	SAFE & GREEN DEVELOPMENT CORP	$1.44M	-612.50%	-70.90%	-230.93%	-57.40%	19.15	0.17	12.00%	-4,292.20%	-2,618.20%
JFB	JFB CONSTRUCTION HOLDINGS	$42.18M	1.80%	1.30%	2.40%	3.30%	0.42	2.70	21.80%	0.50%	0.66%
MRNO	MURANO GLOBAL INVESTMENTS PLC	$789.26M	-37.80%	-12.00%	-9.27%	-6.90%	2.63	0.35	37.70%	-344.30%	-238.70%
XIN	XINYUAN REAL ESTATE CO LTD	$14.38M	N/A	-1.00%	9.94%	4.20%	-47.66	1.12	16.00%	-9.90%	23.57%
ARL	AMERICAN REALTY INVESTORS INC	$202.06M	-2.40%	-1.40%	N/A	-0.90%	0.38	N/A	42.80%	-31.10%	-22.13%
AEI	ALSET INC	$10.36M	-4.90%	-4.10%	-4.06%	-5.10%	0.08	10.91	39.50%	-18.80%	-17.54%
LRE	LEAD REAL ESTATE CO LTD	$18.55M	18.00%	3.80%	10.53%	5.00%	3.06	1.42	15.60%	3.30%	5.13%

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 79.04% over the past year, overperforming other real estate development stocks by 97 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 10.49% over the past year, overperforming other real estate development stocks by 28 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 -33.11% over the past year, underperforming other real estate development stocks by -15 percentage points.

Smith Douglas Homes has an average 1 year price target of $27.50, an upside of 40.31% from Smith Douglas Homes's current stock price of $19.60.

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 35.97% 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 11.61x.

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 -37.84% in the past year. It has underperformed other stocks in the real estate development industry by -20 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 79.04% in the past year. It has overperformed other stocks in the real estate development industry by 97 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 10.49% in the past year. It has overperformed other stocks in the real estate development industry by 28 percentage points.

Why are real estate development stocks up?

Real estate development stocks were up 0.65% in the last day, and up 0.21% over the last week.

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

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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.