Real Estate Sector Sees Triple Fundraising in FY25, REITs Outperform Sensex
The Indian real estate sector has seen a significant surge in fundraising, with companies raising three times more funds in FY25 compared to FY24. REITs have also outperformed the Sensex, delivering higher returns.
Real EstateFundraisingReitsSensexInvestmentReal Estate NewsJul 03, 2025
This sharp increase reflects growing investor confidence and renewed momentum in the sector. Most of the funds were raised in the largecap real estate segment, which attracted Rs 3,93,898 million, according to data compiled by Equirus Capital.
Real Estate Investment Trusts (REITs) followed with Rs 3,12,012 million, while smallcap and midcap segments raised Rs 66,938 million and Rs 52,626 million, respectively. The number of deals also jumped from just five in FY24 to 17 in FY25 — reflecting strong investor interest in the sector.
The report also highlighted strong performance by REITs in the past year. For the 12-month period ending June 23, REITs delivered a return of 17.9 per cent, which is nearly three times higher than the Sensex’s return of 6.1 per cent. In comparison, listed companies in the largecap, midcap, and smallcap real estate segments recorded negative returns over the same period.
However, over a longer time frame, smallcap real estate companies have emerged as the best performers. Since March 2021, the smallcap segment has outperformed not just the large and midcap real estate stocks, but also REITs and the broader Sensex index. The report suggests that despite short-term volatility, long-term investors in the smallcap real estate space have been rewarded well.
Meanwhile, REITs continue to attract interest for their relatively stable and higher returns, especially as the broader equity market remains uncertain. Equirus Capital said the surge in fundraising and deal activity is a positive sign for the sector and could indicate a broader recovery in real estate investment cycles.
Frequently Asked Questions
What is the total amount of funds raised by real estate companies in FY25?
Real estate companies raised Rs 3,28,526 million in FY25.
How much did REITs contribute to the fundraising in FY25?
REITs contributed Rs 3,12,012 million to the fundraising in FY25.
What was the return on investment for REITs in the 12-month period ending June 23?
REITs delivered a return of 17.9 per cent in the 12-month period ending June 23.
How did the Sensex perform in the same period?
The Sensex returned 6.1 per cent in the same period.
Which segment of real estate has performed the best over the longer term?
The smallcap real estate segment has performed the best over the longer term, outperforming large and midcap real estate stocks, REITs, and the Sensex.
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