Real Estate Firms Raise Over ₹26,000 Crore in Capital Markets
Real estate companies have raised over ₹26,000 crore through capital markets in the past 12 months, with smallcap companies leading the performance with a 17% return.
Real EstateCapital MarketsReitsSmallcap CompaniesLargecap CompaniesReal Estate NewsJul 29, 2025
Smallcap companies have been the top performers over the past 12 months, delivering returns of 17 per cent. This is followed by Reits, which have recorded a 15.2 per cent return. In contrast, largecap listed real estate companies have seen a negative return of -2.9 per cent, highlighting the divergent performance within the sector.
Since 2017-18 (FY18), real estate companies have raised a total of ₹72,331 crore. Reits have accounted for over 43 per cent of this amount, reflecting their growing importance in the real estate market. The success of Reits in raising capital and delivering returns has been a significant factor in the overall growth of the sector.
The capital raised through these means has been instrumental in funding various real estate projects, including residential, commercial, and infrastructure developments. This influx of capital has also helped real estate companies to expand their operations, improve their financial health, and meet the increasing demand for real estate in various segments.
The performance of smallcap companies in the real estate sector is particularly noteworthy. Their ability to deliver strong returns has attracted significant attention from investors, who are increasingly looking for opportunities in these smaller, more agile firms. This trend is expected to continue as the real estate market continues to evolve and mature.
However, the negative returns of largecap listed real estate companies highlight the challenges faced by these firms. Factors such as regulatory changes, economic conditions, and market competition have impacted their performance. Despite these challenges, the overall outlook for the real estate sector remains positive, driven by the strong performance of smallcap companies and the growing role of Reits.
The success of Reits in the capital markets has also been a significant factor in the growth of the real estate sector. Reits provide a platform for investors to gain exposure to a diversified portfolio of real estate assets, offering both income and capital appreciation. This has made Reits an attractive investment option for a wide range of investors, from individual retail investors to institutional investors.
In conclusion, the real estate sector in India continues to attract significant capital from the markets, driven by the strong performance of smallcap companies and the growing importance of Reits. This trend is likely to continue as the sector evolves and matures, providing opportunities for both investors and real estate companies alike.
Frequently Asked Questions
How much capital have real estate companies raised in the past 12 months?
Real estate companies have raised over ₹26,000 crore through capital markets in the past 12 months.
Which companies have been the top performers in the real estate sector?
Smallcap companies have been the top performers, delivering returns of 17 per cent over the past 12 months.
What is the performance of Real Estate Investment Trusts (Reits)?
Reits have recorded a 15.2 per cent return over the past 12 months.
How much capital have real estate companies raised since 2017-18?
Since 2017-18, real estate companies have raised a total of ₹72,331 crore.
What is the role of Reits in the real estate market?
Reits provide a platform for investors to gain exposure to a diversified portfolio of real estate assets, offering both income and capital appreciation.
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