India’s real estate sector has emerged as a leader in qualified institutional placements (QIPs) in 2024, raising a total of Rs 22,320 crore. The sector accounted for the highest capital raised and the most QIP issuances, reflecting strong institutional confidence in India’s economic resilience.
In 2024, eight developers and one REIT collectively raised Rs 22,320 crore, making the sector a dominant contributor to the surge in QIP activity."
Overall, QIP fundraising across all sectors amounted to Rs 1,41,482 crore through 99 issues, marking a 75% increase from Rs 80,816 crore raised in 2020. In comparison, 2023 saw just 43 QIP issues across sectors, raising Rs 55,109 crore—comparable to the Rs 56,152 crore raised in 2017. Notably, real estate developers did not raise any funds via QIPs in 2023, making 2024 a comeback year for the sector.
"The sector’s fundraising success in 2024 was fueled by growing investor confidence in India’s real estate market, despite global uncertainties and tightening fiscal policies. While the broader equity market showed volatility, the strong performance of the Real Estate index underscores sustained investor interest,"
Looking ahead to 2025, Puri noted that the overall market outlook for QIP fundraising remains mixed due to external factors such as global economic uncertainties. However, the resilience demonstrated by the real estate sector in 2024 could help maintain momentum, with developers and REITs likely to explore capital-raising opportunities in the coming year.