Real estate companies raised over Rs 26,000 cr via capital market in the past 12 months: Equirus Capital
Financial services firm Equirus Securities has released a press note on the development in the real estate sector. As per the press note, small cap real estate companies have returned 17% in the past 12-months. REITs accounts for almost 43% of fund raising via primary sources since FY18. The total warehousing stock across Top-8 Tier 1 cities has more than doubled since 2019 from around 213 mn sq ft to 438 mn sq ft in 2024.
Smallcap posts highest returns
Small Cap real estate companies have been the best performing segment in the past 12 months, garnering 17% returns, followed by REITs at 15.2%, midcap at 2.5%, the benchmark index Sensex posted a meagre 1.4%, whereas the largecap real estate listed companies posted a negative -2.9% returns.
Taking a longer horizon, small cap listed real estate companies continue to be the best performing segment since March 2021 followed by Mid Cap, large cap, benchmark Sensex and lastly the REITs, that posted lowest returns.
Over 43% of capital raised by REITs since FY18 in the sector
Since FY18 a total of Rs 723,310 mn was raised in the real estate sector, out of that REITs accounted for over 43% around Rs 312,413 mn, followed by Rs 204,370 mn.
Real estate companies raised over Rs 26,000 cr via capital market in the past 12 months
Total warehousing stock has more than doubled since 2019
India’s Warehousing Sector has been Expanding Horizons with Emerging Opportunities beyond the metros. The growth in the warehousing stock is fueled by infrastructure upgrades, policy reforms, and consumption surge in Tier 2 & 3 cities. The total stock reached ~533 Mn sq.ft in CY 2024, from ~300 Mn sq.ft in CY 2019.
Government schemes like GST, Gati Shakti, DFCs, and UIDF are boosting warehousing expansion and connectivity. The growth is largely driven by of e-commerce demand (nearly 60%) coming from smaller cities, warehousing demand is rapidly expanding beyond Tier 1 hubs.
Tier 2–3 cities contribute ~95 Mn sq.ft (18%) of total stock — a 4X increase since 2017. Grade A share in new absorption is ~80% in 2024 across top 8 Tier 1 cities. In emerging cities, Grade A constitutes ~30% of stock, reflecting occupier shift toward quality.
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