India’s real estate sector has recorded its highest capital inflow in seven years, with a total of ₹23,080 crore raised across 12 major deals, according to investment banking firm Equirus Capital. This surge reflects the sector’s strong post-pandemic recovery and growing confidence among both domestic and international investors.
Since FY2018, India’s real estate industry has raised a total of ₹72,331 crore. Of this, ₹31,241 crore came through Real Estate Investment Trusts (REITs), ₹20,437 crore from large-cap developers, ₹12,496 crore from mid-cap firms, and ₹8,156 crore from small-cap companies. The data showcases a well-diversified funding ecosystem across multiple segments of the market.
Equirus Capital’s report highlighted that since March 2021, small-cap real estate stocks have outperformed mid-cap developers in market performance. While REITs have shown moderate long-term growth, large-cap developers have registered significant expansion. Interestingly, REITs delivered a 21.3% return in the past 12 months, outperforming other asset classes in the sector. Meanwhile, large-, mid-, and small-cap equities witnessed negative returns during the same period due to valuation adjustments and overall market corrections.
The analysis further noted that consistent institutional participation and investor trust are fueling capital inflows into India’s real estate market. The increasing transparency, maturity, and reliability of the sector have encouraged more REIT investments, particularly in commercial and office properties.
Overall, the seven-year high in capital inflow marks a major milestone for Indian real estate. With strong market fundamentals, easier access to financing, and rising investor interest, the sector is well-positioned for long-term growth, diversification, and sustained momentum in the coming years.
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