Indian Real Estate Sector Sees Highest Capital Inflows in 7 Years, Reaches Rs 23,080 Crore
The Indian real estate sector has witnessed a significant surge in capital inflows, raising Rs 23,080 crore across 12 deals, marking the highest fundraising level in seven years, according to a report by Equirus Capital.
Real EstateCapital InflowsFundraisingInvestor ConfidenceReitsReal Estate NewsOct 27, 2025
According to Equirus Capital’s data, since FY18, the total capital raised by the sector amounts to Rs 72,331 crore. Real Estate Investment Trusts (REITs) have contributed the largest share at Rs 31,241 crore. This was followed by large-cap real estate firms that mobilized Rs 20,437 crore, mid-cap companies at Rs 12,496 crore, and small-cap players at Rs 8,156 crore.
The performance trends within the sector reveal interesting dynamics. Since March 2021, small-cap real estate stocks have outperformed all other categories, followed by mid-cap stocks. This shift indicates a change in investor preference toward smaller, growth-oriented developers. These emerging and regional players have benefited from localized housing demand, flexible project execution, and a lower debt burden.
In contrast, large-cap real estate stocks have lagged, while REITs have been the weakest performers among equity-linked real estate instruments during this period. Despite their scale and stability, large developers have seen relatively subdued stock performance in comparison.
Interestingly, from a 12-month performance perspective, REITs have emerged as the best-performing asset class within the real estate universe, delivering returns of 21.3%. Meanwhile, large-, mid-, and small-cap real estate stocks have all recorded negative returns over the same period. This rebound in REIT performance highlights a renewed preference for yield-oriented and stable investment avenues, especially amid fluctuating interest rate environments and volatility in equity markets.
The shift also reflects investors’ growing comfort with structured real estate investment products that offer both income stability and long-term appreciation potential. Overall, Equirus Capital’s findings indicate that India’s real estate sector is entering a new phase of capital market engagement, marked by robust fundraising, differentiated performance across categories, and evolving investor behavior favoring both stability and growth.
Frequently Asked Questions
What is the highest fundraising level in the Indian real estate sector in the past seven years?
The Indian real estate sector has achieved its highest fundraising level in the past seven years, raising Rs 23,080 crore across 12 deals.
What is the total capital raised by the Indian real estate sector since FY18?
Since FY18, the total capital raised by the Indian real estate sector amounts to Rs 72,331 crore.
Which category of real estate firms has contributed the most to the capital raised since FY18?
Real Estate Investment Trusts (REITs) have contributed the largest share at Rs 31,241 crore.
How have small-cap real estate stocks performed since March 2021?
Since March 2021, small-cap real estate stocks have outperformed all other categories, followed by mid-cap stocks.
What is the 12-month performance of REITs in the real estate sector?
From a 12-month performance perspective, REITs have emerged as the best-performing asset class within the real estate universe, delivering returns of 21.3%.
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