The Indian real estate sector has experienced significant growth in capital market deals, with 11 deals raising a total of Rs 17,867 crore in the first nine months of FY26. This figure matches the total deals seen in FY25, indicating a potential record-breaking year in terms of both deal numbers and funds raised, as per a report by Equirus Capital. Since FY18, the sector has raised a total of Rs 72,331 crore, with REITs leading the fundraising at Rs 31,241 crore, followed by large-cap, mid-cap, and small-cap real estate companies.
Recent trends suggest a positive outlook for the real estate sector, driven by strong economic growth and consumption patterns in India. Factors such as stable home loan rates and rental yields post-FY21 COVID have provided relief to buyers, with the gap between these rates expected to decrease to below 500 bps in FY26. Housing affordability has also improved significantly nationwide over the years, with the property price to annual income ratio dropping from 22 in 1995 to 3.3 in 2024, making real estate an attractive asset class.
The report highlights that changing lifestyles, upgrades, low interest rates, and rising incomes have made real estate a preferred investment choice in H1 2025. Moreover, residential real estate absorption across India has either matched or exceeded supply levels in recent years, particularly in the top seven cities where increased sales have been supported by numerous launches in 2024.
