India’s real estate sector has witnessed a major comeback, raising Rs 23,080 crore across 12 deals , the highest fundraising in seven years, according
to a report by Equirus Capital. The surge marks renewed investor confidence and a broad-based recovery in the property market, driven by both commercial and residential demand, reported TOI. Strongest Fundraising Since 2017 The latest data highlights that the sector’s 2025 fundraising has surpassed previous peaks, reflecting improving sentiment among institutional investors and developers alike. Since FY18, the industry has collectively mobilized over Rs 72,331 crore, with Real Estate Investment Trusts (REITs) contributing a significant Rs 31,241 crore , cementing their role as a key funding avenue for India’s real estate expansion. Following REITs, large-cap real estate firms raised Rs 20,437 crore, mid-cap developers brought in Rs 12,496 crore, while small-cap players accounted for Rs 8,156 crore, the report added. Small-Cap Developers Outperform Since 2021 Interestingly, the analysis shows that small-cap real estate stocks have been the best performers since March 2021, outpacing both mid and large-cap counterparts. This reflects investor appetite for agile developers who are better positioned to tap into localized housing demand and adapt to market shifts more efficiently. By contrast, large-cap companies have underperformed in the same period, underscoring how market momentum has shifted towards niche and flexible players. REITs Regain Momentum While REITs had previously lagged behind, the past 12 months have seen them emerge as the top-performing real estate asset class, delivering 21.3% returns , outpacing all listed property companies. This rebound signals a growing investor preference for stable, yield-oriented investments amid global market volatility and shifting interest rate trends. Analysts say this trend reflects rising comfort with structured real estate investments that offer steady income streams alongside long-term capital appreciation. Sector Outlook: Stability Meets Growth Equirus Capital’s report suggests that India’s real estate industry is now entering a new phase of capital engagement , one that balances growth-driven smaller developers with stability-seeking institutional investors via REITs. “The sector is witnessing a structural revival with diversified sources of funding and investor participation. The strong capital inflows show that real estate is once again being seen as a resilient and profitable investment avenue,” said a senior analyst quoted in the report. Experts expect this momentum to continue into FY26, driven by urban housing demand, improved regulatory frameworks, and renewed developer discipline in project execution. Key Highlights
- Rs 23,080 crore raised in 2025 , highest since 2017
- 12 fundraising deals across major property players
- Small-cap developers lead performance since 2021
- REITs deliver 21.3% returns in last 12 months
- Shift towards stable, yield-focused investments amid volatility
