Indian Real Estate Sector Raises Rs 13,500 Crore via IPOs in 2024

Indian real estate sector raises nearly Rs 13,500 crore through IPOs, which is nearly double the amount raised in the previous year. This is a good recovery and increasing investor confidence in the market, Colliers India said in its latest report.

Till 2024, 123 IPOs of all types have been noticed within the sector, going over the total IPO that happened within the entire year 2023. Since the beginning of 2021, there have been 21 real estate IPOs filed, which is a dramatic improvement from the 11 recorded listings between 2017 and 2020. The trend suggests more and more interest in this particular sector, especially at times post-pandemics where real estate companies managed to raise Rs 31,900 crore through IPO more than double the amount managed by them in the earlier four years.

According to the report, the surge in IPOs in the real estate sector is led primarily by housing finance institutions that attracted 46% of the total capital raised between 2021 and 2024. The REITs accounted for another 22%. In addition, major real estate developers focusing on residential projects have garnered around Rs 5,600 crore, ten times the amount received in the previous four years.

According to Badal Yagnik, CEO of Colliers India, "The bright prospects for IPO activity in India are supported by increased investment in infrastructure, favorable demographics, and rising consumer spending, all aided by a conducive regulatory environment".

Demand in the housing, commercial, and shopping sectors has been keeping demand for the IPOs of RE developers, HFIs and REITs products like Grade A offices and malls active. Expectation of rate cut is also likely to support real estate activity further.

That too, on the performance front, has been pretty spectacular, with over 30% gains year to date and well ahead of the Sensex as a whole. In that case, this trend can very well continue in view of leading flex space operators expanding their portfolios and accelerating their IPO plans.