Indian Real Estate Sector Sees Rs 17,867 Crore in 11 Deals in 9 Months

Mumbai, Dec 30 (IANS) The Indian real estate sector witnessed 11 capital market deals and raised Rs 17,867 crore in the first nine months of FY26, a report showed on Tuesday.

The number of deals in the first nine months of FY26 is already equal to the deals witnessed in FY25, and the amount raised and deals may surpass to become the highest in the past six years, according to the report by Equirus Capital.

The sector overall witnessed fund-raising of Rs 72,331 crore since FY18, with REITs getting the largest share of fund-raising at Rs 31,241 crore. Large-cap real estate companies followed with Rs 20,437 crore, mid-cap real estate companies at Rs 12,496 crore, and small-cap real estate companies at Rs 8,156 crore.

India’s real estate story remains strong, backed by strong economic growth and consumption. Recent trends indicate that the up-cycle for real estate will continue in the near-term future due to increased affordability and investment.

Home loan rates and rental yields have been steady since FY21, offering buyers relief. The gap between home loan rates and rental yields is likely to come down to below 500 bps in FY26, according to the report.

Housing affordability has improved significantly across the country over the last several years. The property price to annual income ratio, which used to be 22 in 1995, has steadily fallen due to urban development. It has now come down to 3.3 in 2024.

Changing lifestyles, upgrades, low interest rates, and improving income have made real estate the preferred asset class in H1 2025. Pan-India residential real estate absorption has equalled or exceeded supply over the last few years. The top seven cities have seen increased sales supported by several launches in the past calendar year (2024).