Is India's Real Estate Fundraising Reaching New Heights in FY25?
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Synopsis
India's real estate fundraising has reached unprecedented heights in FY25, signaling a shift in investment strategies and market dynamics. With significant capital raised through REITs and other sectors, the future looks promising. Discover the insights from Equirus Capital's report on this booming industry.
Key Takeaways
- India's real estate sector raised Rs 23,080 crore in FY25.
- REITs led fundraising efforts with Rs 31,241 crore.
- Highest returns from REITs at 21.3% in the last year.
- Retail REIT market expected to hit Rs 60,000–80,000 crore by 2030.
- SEBI's new classification of REITs aims to enhance diversification opportunities.
New Delhi, Oct 23 (NationPress) The real estate sector in India has successfully secured Rs 23,080 crore through 12 significant deals in FY25, marking a peak not seen in seven years, according to a recent report.
Since FY18, the total capital raised in the real estate sector has amounted to Rs 72,331 crore. Leading this growth are Real Estate Investment Trusts (REITs), which alone accounted for Rs 31,241 crore, as detailed in a report by investment banking firm Equirus Capital.
Following REITs, large-cap real estate companies raised Rs 20,437 crore, while mid-cap firms gathered Rs 12,496 crore, and small-cap businesses brought in Rs 8,156 crore.
Over the last 12 months, REITs have delivered the highest returns at 21.3 percent, outpacing all other segments within the real estate market. In contrast, large-, mid-, and small-cap real estate stocks experienced negative returns during this timeframe.
Interestingly, since March 2021, small-cap real estate stocks have shown superior performance regarding returns, with mid-cap stocks closely trailing. Large-cap stocks have lagged behind, with REITs being the least productive equity instrument, as noted in the report.
A recent Anarock report highlighted that India’s REIT ecosystem, predominantly featuring commercial office assets, is on the brink of a major transition. The next wave of growth is expected to arise from retail malls, shopping centers, and mixed-use developments.
By the year 2030, the retail REIT market in India could soar to between Rs 60,000–80,000 crore, which would represent about 30–40 percent of the projected Rs 2 lakh crore REIT universe, according to the same report.
This transformative trend aligns with patterns observed in mature economies, where retail REITs constitute 15–25 percent of total REIT market capitalization.
Institutional investors are aggressively expanding into high-income, consumption-driven clusters in Tier-II cities, including Indore, Coimbatore, Surat, Bhubaneswar, and Chandigarh.
In a recent development, SEBI has reclassified REITs as ‘equity’ for mutual fund investments to broaden diversification options and foster the growth of real estate as a viable asset class.
Point of View
I believe this surge in fundraising within India's real estate sector is not only a reflection of market confidence but also indicates a strategic pivot towards more diversified investments. The growing interest in retail and mixed-use developments shows that the sector is evolving, presenting new opportunities for both institutional and retail investors. Our nation is on the brink of a real estate revolution, and it's crucial for all stakeholders to stay informed and prepared.
NationPress
23/10/2025
Frequently Asked Questions
What is the total amount raised in India's real estate sector in FY25?
India's real estate sector raised Rs 23,080 crore through 12 deals in FY25.
Which segment of real estate fundraising led the way?
Real Estate Investment Trusts (REITs) led the way, raising Rs 31,241 crore.
How do REITs compare to other real estate stocks in terms of returns?
REITs achieved the highest returns at 21.3 percent, while large-, mid-, and small-cap stocks posted negative returns.
What does the future hold for India's retail REIT market?
By 2030, India's retail REIT market may reach Rs 60,000–80,000 crore, constituting approximately 30–40 percent of the total REIT universe.
How is SEBI supporting the growth of real estate as an asset class?
SEBI has reclassified REITs as 'equity' for mutual fund investments to enhance diversification opportunities.
