Real Estate Fundraising Triples in FY25; REIT Rally Outpaces Market

India’s real estate sector witnessed a remarkable resurgence in fiscal year 2025, with capital mobilization surging threefold, from ₹10,955 crore in FY24 to ₹32,852 crore in FY25, across 17 deals—up from just five a year ago. According to Equirus Capital, large-cap firms led the charge, raising ₹39,389 crore, while REITs brought in ₹31,201 crore. Mid-cap and small-cap players attracted ₹5,263 crore and ₹6,694 crore, respectively.

REITs emerged as the top performers, delivering a 17.9% return in the 12 months ending June 23, 2025, easily beating the Sensex’s 6.1% gain. In contrast, listed real estate stocks across large-, mid-, and small-cap segments posted negative returns during the same period.

The surge in PE and M&A activity, along with the appeal of REITs’ stable income streams, underpinned this fundraising boom . Over the long haul, small-cap real estate firms have outperformed, but in the short term, REITs have provided the lion’s share of returns. This dual momentum in strong capital inflows and robust REIT outperformance, signals renewed investor confidence and a potential renaissance across India’s property sector.