Real estate sector revival: Industry raises over Rs 23,000 crore, highest in 7 years – Report
The Indian real estate sector has achieved its best fundraising results in seven years, according to a report by Equirus Capital. This increase shows renewed investor confidence and a steady recovery in property markets.The sector raised Rs 23,080 crore across 12 deals, the highest amount since 2017. This indicates a strong rebound in real estate financing and interest in both commercial and residential projects, as reported by ET.Since FY18, the industry has raised a total of Rs 72,331 crore, mostly from Real Estate Investment Trusts (REITs), which contributed Rs 31,241 crore.Following REITs, large-cap real estate firms gathered Rs 20,437 crore, mid-cap companies brought in Rs 12,496 crore, and small-cap players raised Rs 8,156 crore.The report pointed out that small-cap real estate stocks have performed best since March 2021, beating both mid and large-cap companies. This trend shows that investors prefer smaller, agile developers who benefit from local housing demand and adaptable project strategies.In contrast, large-cap stocks have not performed well, and REITs have been the weakest performers among listed real estate assets during the same period.However, in the past 12 months, REITs have become the top-performing real estate asset class, providing returns of 21.3%. Large, mid, and small-cap stocks have all seen negative returns.The report noted that the resurgence of REITs indicates a shift towards stable and yield-focused investment options. This shift occurs amid global market volatility and changing interest rates.Analysts believe this suggests that investors are becoming more comfortable with structured real estate investments that offer steady income alongside long-term value growth.Equirus Capital pointed out that India’s real estate sector is entering a new phase of capital engagement. This phase features strong fundraising, changing investor attitudes, and a balance between growth-oriented small developers and stability-seeking REITs.
