The real estate sector mobilized close to Rs 135 billion via IPOs in 2024, according to the report of Colliers, the investment management company. It reflects an uptick in momentum as Indian real estate. It had IPOs raise close to double the amount from 2023.
The report cites that real estate is a substantial contributor to India’s GDP. It consequently points out a significant increase in IPO activity, especially since the pandemic. Since 2021, the stock exchanges have seen 21 real estate IPOs. Compared to just 11 listings in the previous four years from 2017 to 2020.
In all, 21 real estate companies raised Rs 319 billion through IPOs in the past three years, more than twice the amount mobilized between 2017 and 2020. The main drivers are growing demand for residential, commercial, and retail.
The report further said that housing finance institutions accounted for 46 percent of the overall sector’s 2021-2024 capital raised through IPOs, making them the largest contributor. REITs secured 22 percent of the share. While residential-focused developers garnered Rs 56 billion-plus, over ten times from the previous four years.
Colliers underlines, “Since 2021, housing finance companies form a majority of the IPOs in real estate at 46 percent. REITs formed 22 percent while real estate developers made up 17 percent of those accessing the primary market,” said Badal Yagnik, Chief Executive Officer, Colliers India.
This is indicative of a trend where Indian real estate-both traditional firms. As well as newer and more innovative players-see opportunities to raise funds through the public markets. In addition to expected cuts in lending rates and supportive regulation, India’s real estate is primed for continued growth.
This sound of flurry of activity in real estate IPOs echoes strong confidence in the future of the sector. It further underlines the basic position the latter occupies in India’s economic landscape.
ANI
