Real Estate Capital Raising in FY 2024-25 Triples Despite Weak Stock Market Performance

Mumbai, May 12, 2025: Capital raising in the 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 INR 328,526 million, up from just five deals worth INR 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).

Source: Equirus Capital

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 per cent gain over the same period.

“One of the bright spots in the market has been REITs, which outperformed with a 12.2 per cent return, underscoring their growing appeal,” said Vijay Agrawal, MD, Equirus Capital. “India’s REIT and InvIT markets have evolved from niche investment into core components of the country’s real estate and infrastructure financing ecosystem.”

Since FY2020, cumulative fund mobilisations through REITs and InvITs have crossed INR 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 totalling $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, institutionalisation, and long-term growth potential, making it a focus area for PE funds, strategic investors and capital market stakeholders alike,” added Agrawal.