India Real Estate IPO Boom - INR 13,553 Crore Raised in 2024 as Sector Gains Investor Confidence

Critical Facts and Figures:

• 2024 Real Estate IPOs:
• ₹13,553 crore raised, nearly double 2023’s total.
• Post-Pandemic Growth (2021-2024):
• 21 real estate IPOs raised ₹31,900 crore, more than twice the amount raised in the previous four years.

Breakdown by Sector (2021-2024):

• Housing Finance Companies: 46% of IPOs
• Real Estate Investment Trusts (REITs): 22%
• Real Estate Developers: 17%
• Market Activity as of October 2024:
• 123 new IPO issues across sectors;
• 47 real estate IPOs listed since 2010, raising over ₹30,000 crore in total.

Real Estate IPOs Surge in Demand

Driven by robust demand across residential, commercial, and retail real estate segments, Indian IPOs within the property sector have gathered strong momentum. 2024 has seen real estate IPOs generate ₹13,553 crore, a notable increase from the previous year, as companies leverage capital markets to fuel expansion plans.

Flexible Spaces and Small REITs Eye IPOs

Industry reports indicate that flexible workspace operators and Small and Medium REITs (SM-REITs) are preparing to enter the IPO landscape. These sectors have gained substantial investor interest, with the oversubscription of Awfis’ IPO highlighting the acceptance of co-working and flexible spaces among diverse clients, including GCCs and major corporations.

Housing Finance Companies Lead IPO Market Share

Since 2021, housing finance companies have dominated real estate IPO activity, comprising 46% of capital raised. REITs and property developers follow, supported by favorable regulatory conditions and rising consumer demand.

Investor Interest Fuels a New Era for Real Estate

The surge in real estate IPOs reflects the sector's resilience and investor confidence in India’s expanding economy. Since the pandemic, stock exchanges have recorded 21 real estate IPOs, raising ₹31,900 crore.

This resurgence underscores the growing appeal of real estate to institutional and retail investors alike, backed by high corporate earnings and liquidity in the market.