India’s real estate sector has raised a notable ₹31,900 crore through public markets between 2021 and 2024, with Housing Finance Companies (HFCs) fueling 46% of this total, as reported by Colliers India. This surge in capital, largely driven by IPOs, highlights HFCs' central role in the industry’s fundraising landscape.
The stock market's record-breaking 123 IPOs in 2024, up to October, signals robust economic growth, rising corporate earnings, and active participation from retail and institutional investors. Within real estate, nearly ₹13,500 crore was raised through IPOs in 2024 alone—double the previous year’s figures—reflecting increased demand across housing, office leasing, flexible workspaces, and hospitality sectors. Notably, 21 real estate IPOs were launched from 2021 to 2024, contrasting with just 11 from 2017 to 2020.
Colliers data also shows that, besides HFCs, REITs accounted for 22% of funds raised, followed by real estate developers (17%), hospitality (13%), and flex space operators (2%). According to Colliers India CEO Badal Yagnik, supportive infrastructure investments, favorable demographics, and a pro-growth regulatory climate contribute to the positive market outlook.
The BSE Realty Index’s over 30% gain year-to-date has outpaced the Sensex, with 90% of real estate IPOs in 2024 oversubscribed, indicating strong investor sentiment. Vimal Nadar, Senior Director at Colliers, emphasized that Grade A office spaces and retail centers are likely to see continued demand, with potential interest rate cuts further encouraging real estate growth. With these favorable dynamics, the real estate sector is positioned for sustained growth in the near future.
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