Indian Real Estate Raises ₹17,867 Crore in FY26 YTD, Poised for Strongest Fundraising in Six Years
India’s real estate sector is witnessing one of its strongest fundraising phases in recent years, having raised ₹17,867 crore between April and December FY26, according to an Equirus Capital report. With 11 capital market transactions already completed—spanning IPOs, QIPs, REIT issuances and rights issues—the sector has matched the total number of deals seen in the entire FY25. With one quarter still remaining, both deal volumes and funds raised are expected to surpass last year’s levels, putting FY26 on track for the best performance in six years.
A longer-term view shows the sector has mobilised ₹72,331 crore over the past eight years, with REITs emerging as the preferred fundraising vehicle, accounting for ₹31,241 crore. Large-cap developers attracted the majority of investor interest, followed by mid-cap firms, while small-cap companies saw relatively lower inflows. This trend highlights investors’ growing preference for scale, balance-sheet strength and stable, income-generating assets.
Improving housing affordability has been a key driver of renewed momentum. The property price-to-income ratio has fallen sharply from around 22 in 1995 to about 3.3 in 2024, marking the most affordable housing environment in nearly three decades. Stable home loan rates, steady rental yields and balanced supply-demand dynamics across major cities have further supported buyer demand and investor confidence, strengthening expectations that the real estate upcycle still has room to run in FY26.
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