Indian Real Estate Raises ₹23,080 Crore in FY25, Highest in 7 Years: Equirus Capital
India’s real estate sector has achieved a remarkable milestone, raising ₹23,080 crore in FY25, marking the highest capital inflow in the past seven years, according to a report by Equirus Capital. The surge was driven primarily by Real Estate Investment Trusts (REITs) and large developers, reflecting growing investor confidence in the property market. A total of 12 major deals were recorded during the financial year.
Since FY18, the total capital mobilized by the sector has reached ₹72,331 crore, with REITs contributing ₹31,241 crore, followed by large-cap firms (₹20,437 crore), mid-caps (₹12,496 crore), and small-cap developers (₹8,156 crore). Interestingly, small-cap realty firms have delivered the strongest stock market performance since March 2021, outperforming both mid- and large-cap counterparts.
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However, the trend has shifted in the past 12 months, with REITs emerging as the best-performing real estate asset class, generating 21.3% returns, while large-, mid-, and small-cap realty stocks posted negative returns. Experts suggest that the stability of rental income and investor appetite for yield-based assets have made REITs increasingly attractive in the current market environment.
Industry analysts predict that India’s retail REIT market could expand significantly by 2030, reaching between ₹60,000 crore and ₹80,000 crore, accounting for nearly 40% of the country’s overall REIT ecosystem, estimated to touch ₹2 lakh crore ($25 billion). The growth will likely come from retail malls, high-quality assets, and rising urban consumption, according to Anarock Research and Colliers India.
In recent developments, Embassy Developments infused ₹1,160 crore by converting warrants into equity shares, while Blackstone and Sattva Group filed for an IPO of Knowledge Realty Trust, aiming to raise ₹6,200 crore, which could become India’s largest REIT listing to date. These strategic moves underline the sector’s strong financial momentum and the investor confidence driving India’s next phase of real estate growth.
