Capital Raised, Number of Deals Rise by Real Estate Companies Threefold in FY25

Mumbai, July 6, 2025: The amount of capital raised and the number of deals by real estate companies have risen over threefold in FY25, according to a press note released by financial services firm Equirus Capital. The returns posted by REITs are higher than Sensex and other segments of the listed real estate sector—largecap, midcap and smallcap.

The amount of capital raised by real estate companies rose from INR 1,09,554 million to INR 3,28,526 million, thereby clocking a threefold return. Besides, the number of deals rose from five in FY24 to 17 in FY25.

The bulk of the fundraising took place in the largecap real estate segment amounting to INR 3,93,898 million, followed by INR 3,12,012 mn for REITs, smallcap INR 66,938 million and midcap INR 52,626 crore.

Return benchmarking of RE players across the board

The returns posted by REITs were the highest in the past 12 months (till June 23) at 17.9 per cent, almost three times compared to Sensex returns of 6.1 per cent. The returns posted by large, mid and smallcap real estate sector companies have been in the negative.

Source: Bloomberg Mcap – Updated as of 23rd June 2025

Smallcap best-performing segment since March 2021, followed by midcap

If taken a long-term view of over four years, the smallcap segment of the real estate sector has posted higher returns compared to other segments, REITs and benchmark index of the Sensex.