Rs 17.5 Lakh Crore Investment Boost for Renewables, Roads, and Real Estate by FY27
A CRISIL report highlights strong investment growth in renewables, roads, and real estate, with a projected investment of Rs 17.5 lakh crore by FY27. The sectors are adapting to new business dynamics, with a focus on hybrid storage, premium residential projects, and global capability centres in commercial real estate.
RenewablesRoadsReal EstateInvestmentCrisilReal EstateJun 09, 2025
"Over this fiscal and next, investments may rise at 15 per cent annually, reaching Rs 17.5 lakh crore compared with Rs 13.3 lakh crore in the preceding two fiscals. While adapting to the new business dynamics will pose some challenges, credit profiles of CRISIL-rated developers and projects would remain resilient," said Krishan Sitaraman, Chief Ratings Officer, CRISIL Ratings.
India's renewable energy, roads, and real estate sectors are experiencing varied trends. The renewable energy sector is witnessing an accelerated adoption of storage-linked capacities, while the roads sector is focusing more on monetisation. In the real estate sector, there is a growing trend towards premium residential projects and the influx of global capability centres (GCCs) in commercial real estate, driving developers to realign their offerings.
In the renewable energy sector, the transition towards hybrid or storage-backed capacities is addressing the intermittency of power supply. This shift facilitates the scheduling of power round-the-clock with greater confidence. For the roads sector, which has a significant multiplier effect on the economy, a pick-up in project awarding is crucial to revitalise growth.
In the real estate sector, the residential segment is seeing demand normalise after the rapid recovery following the pandemic. "Revenue growth for developers is expected to remain steady at 10-12 per cent this fiscal and next. With volume growth slated to rationalise, realisations will be supported by continuing demand for premium projects. Commercial real estate, too, will see steady net leasing growth of 7-9 per cent this fiscal and next," the CRISIL report noted.
As India continues to be a cost-efficient market for GCCs and domestic sectors grow at a steady pace, annual net leasing demand is poised to cross 50 million square feet by FY27. However, these sectors face an evolving set of challenges. Despite these risks, the credit risk profiles are likely to remain resilient across renewables, roads, and real estate.
Manish Gupta, Deputy Chief Ratings Officer, CRISIL Ratings, highlighted, "Robust operating performance over the past few fiscals and the consequent strong cash flows have kept debt levels under control. Further, healthy investor interest, as evident from equity raises as well as asset monetisation, has enabled significant deleveraging of balance sheets. Cumulatively, Rs 2.1 lakh crore of equity capital has been deployed in these sectors over the past two fiscal years, driven by strong investor participation, supporting the credit profiles of developers and projects."
Frequently Asked Questions
What is the projected investment in renewables, roads, and real estate by FY27?
The projected investment in renewables, roads, and real estate by FY27 is Rs 17.5 lakh crore.
What are the key trends in the renewable energy sector?
The key trends in the renewable energy sector include the accelerated adoption of storage-linked capacities and a transition towards hybrid or storage-backed capacities to address the intermittency of power supply.
What is the focus in the roads sector?
The focus in the roads sector is on monetisation and a pick-up in project awarding to revitalise the sector's growth.
What is driving the real estate sector?
The real estate sector is being driven by the trend towards premium residential projects and the influx of global capability centres (GCCs) in commercial real estate.
What is the expected net leasing growth in commercial real estate?
The expected net leasing growth in commercial real estate is 7-9 per cent this fiscal and next.
Related News Articles
Revolutionizing Railway Security: Matrix Unveils Cutting-Edge Solutions at Rail Tech Conclave 2024
Matrix showcases its advanced security products and solutions, including FACE recognition technology, fingerprint readers, and network cameras, tailored for Railway and Metro systems.
India's REIT Market Booms with Rs 4.5 Lakh Crore Worth of Prime Office Stock
India's real estate investment trusts (REITs) are poised to transform the commercial real estate landscape with a staggering Rs 4.5 lakh crore worth of prime office stock, according to a recent Vestian report.
Indian REITs Association Welcomes Alok Aggarwal as New Chairman
The Indian REITs Association (IRA) has announced the appointment of Alok Aggarwal as its new chairman. Aggarwal, the CEO of Brookfield India Real Estate Trust, will lead the organization in its mission to promote and regulate the real estate investment tr
Rs 8.39 Bn Allocation Fuels Pune's Nigdi-Katraj Metro Project
A significant allocation of Rs 8.39 billion has been announced to accelerate the development of the Nigdi-Katraj metro project in Pune. This funding boost is expected to transform the city's public transportation infrastructure and catalyze real estate gr
Anu Malik's Wife Sells Lucrative Mumbai Property for Rs 14.49 Crore
Anu Malik's wife has recently sold a prime property in Mumbai, generating a substantial sum of Rs 14.49 crore. The property, with a built-up area of 233.64 sq meters (2515 sq ft), also includes two parking spaces.
Pranav Constructions Prepares for Market Debut with IPO Filing
Mumbai-based Pranav Constructions has filed its IPO papers with SEBI, potentially raising Rs 78.40 crore through a pre-IPO placement. The company is set to expand its real estate portfolio with the fresh capital.