India`s real estate sector raises Rs 17,867 crore in 11 deals in 9 months this fiscal
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 and REITs got the largest share of fund-raising at Rs 31,241 crore, followed by large-cap real estate companies at Rs 20,437 crore, mid-cap real estate companies at 12,496 crore and small-cap real estate companies at Rs 8,156 crore.
India’s real estate story remains strong at the back of strong economic growth and consumption.
Recent trends indicate up-cycle to continue for real estate for the near-term foreseeable future on the basis of increased affordability and investment.
“Home loan rates and rental yields have been steady since FY21 COVID, offering buyers relief. The gap between home loan rates and rental yields are likely to come down to below 500 bps in FY26,” according to the report.
The housing affordability has improved significantly pan-India over the last several years. The property price to annual income ratio that used to be 22 in 1995 has steadily fallen due to development in the urban areas of the country. It has fallen steadily in the past 30 years to come down to 3.3 in 2024.
Due to a combined factor of changing lifestyles, upgrades, low interest rates and improving income, the real estate was the preferred asset class in H1 2025.
According to the report, pan-India residential real estate absorption has equalled or exceeded supply over the last few years. The top seven cities witnessed an increased sales supported by several launches in the past calendar year (2024).
