Mumbai, 30 December: India’s real estate sector has raised ₹17,867 crore through 11 capital market deals in the first nine months of the current financial year, according to a report released on Tuesday.
The report by Equirus Capital stated that the number of real estate deals in the first nine months of FY26 has matched that of FY25. This year could surpass a six-year high for the sector.
Overall, the real estate sector has secured ₹72,331 crore in funding since FY18. Real Estate Investment Trusts (REITs) accounted for the largest share at ₹31,241 crore, followed by large-cap real estate companies with ₹20,437 crore, mid-cap companies with ₹12,496 crore, and small-cap companies with ₹8,156 crore.
Strong economic growth and rising consumption have kept India’s real estate market robust.
Recent trends indicate that increasing affordability and investment interest are likely to sustain the sector’s momentum in the coming period.
According to the report, “Since FY21, following the Covid pandemic, home loan rates and rental yields have remained stable, providing relief to buyers. In FY26, the gap between home loan rates and rental yields is expected to narrow to below 500 basis points.”
Affordability for homes across India has improved significantly over recent years. The property price to annual income ratio dropped to 3.3 in 2024, compared to 22 in 1995.
Factors such as changing lifestyles, upgrades, lower interest rates, and rising incomes made real estate the preferred asset class in the first half of 2025.
The report also highlighted that residential real estate demand across India has matched or exceeded supply in recent years. The launch of many new projects in 2024 led to increased sales in the top seven cities.
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