Capital raising in India’s real estate sector has seen a dramatic surge in fiscal year 2024–25, with the total number of transactions more than tripling to 17 deals, raising ?328,526 million, up from just 5 deals worth ?109,554 million in the previous fiscal year. The sharp uptick, according to Equirus Capital, was driven by a rise in private equity and M&A activity, both domestic and international, and an increase in average transaction value (see table below).
Interestingly, this boom in capital flows came despite a decline in the secondary market performance of listed real estate stocks across large, mid, and small caps — all of which underperformed the Sensex’s 7.4% gain over the same period.
“One of the bright spots in the market has been REITs, which outperformed with a 12.2% return, underscoring their growing appeal,” said Vijay Agrawal, Managing Director at Equirus Capital. “India’s REIT and InvIT markets have evolved from niche investments into core components of the country’s real estate and infrastructure financing ecosystem.”
Since FY2020, cumulative fund mobilizations through REITs and InvITs have crossed ?1.6 lakh crore, driven by their expanding asset base, robust institutional backing, and growing retail investor participation.
In a strong start to FY 2025–26, the momentum in PE/M&A deals has continued with 4 deals totaling $372 million in just the first month, reflecting sustained investor confidence and appetite for real estate as an asset class (see table below).
“This surge in capital raising highlights the sector’s resilience, institutionalization, and long-term growth potential, making it a focus area for PE funds, strategic investors, and capital market stakeholders alike.,” added Agrawal.
