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Renewed Real Estate Boom: Smallcaps & REITs Lead India’s Capital Surge

30th July 2025

4 Min Read

Real Estate Boom

Unveiling a Surprising Surge in Real Estate Capital

The last twelve months have rewritten the script for India’s real estate landscape. In a dramatic turnaround, Indian real estate companies have collectively raised over ₹26,000 crore through capital markets, a feat powered by investor appetite for fresh initial public offerings and strategic qualified institutional placements. Indian stock exchanges witnessed a remarkable uptick in property-linked fund flows, fueled by a mix of global optimism and domestic reforms.

Smallcaps and REITs Outperform, Investors Take Notice

Amid a crowded field of realty players, smallcap companies emerged as surprising stars, delivering 17% returns for investors over the year. BSE India. Not far behind, Real Estate Investment Trusts (REITs) clocked a robust 15.2%, consolidating their role as a reliable alternative to equities. In stark contrast, largecap listed real estate firms reported a return of -2.9%, underscoring an evolving market where nimble and diversified entities shine. SEBI official site.

Trends Since FY18: REITs Dominate the Capital Pool

The capital markets have served as a lifeline for realty firms since 2017-18, with total funds raised crossing ₹72,331 crore in this period. Notably, over 43% of this sum was mobilized by REITs, highlighting a profound shift in investor preference towards professionally managed, income-yielding platforms that offer both growth and stability. RERA official site.

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