December 30, 2025: India’s real estate sector mobilised Rs 17,867 crore through 11 capital market transactions during the first nine months of FY26, according to a report released on Tuesday. The number of deals completed during this period already matches the total recorded in the entire FY25, indicating sustained investor participation in the sector.
As per the Equirus Capital report, both the volume of transactions and the quantum of funds raised in FY26 are on track to exceed previous years and could emerge as the highest levels seen in the last six years. Since FY18, the sector has cumulatively raised Rs 72,331 crore through capital markets.
Among various segments, real estate investment trusts (REITs) accounted for the largest share of fundraising at Rs 31,241 crore. Large-cap real estate companies followed with Rs 20,437 crore, while mid-cap firms raised Rs 12,496 crore and small-cap players secured Rs 8,156 crore. The report noted that the sector’s performance continues to be supported by broader economic growth and steady consumption trends.
The outlook for real estate remains stable in the near term, driven by improved affordability and sustained investment interest. “Home loan rates and rental yields have been steady since FY21 COVID, offering buyers relief. The gap between home loan rates and rental yields are likely to come down to below 500 bps in FY26,” the report stated.
Housing affordability has shown a marked improvement across India over the years. The property price-to-annual income ratio, which stood at around 22 in 1995, has declined consistently due to urban development and income growth, reaching 3.3 in 2024.
The report added that lifestyle changes, home upgrades, stable interest rates and rising incomes positioned real estate as a preferred asset class in the first half of 2025. Residential absorption across India has matched or exceeded supply in recent years, with the top seven cities recording higher sales supported by multiple project launches during calendar year 2024.
Source: Lokmat Times
