While retail and short-term investors react to volatility with caution, institutional investors have been doubling down on long-term growth opportunities in India’s real estate market
The India stock market has witnessed significant volatility in the recent months. This has led to steep corrections which began in late September 2024, leaving investors wary. Since then, the Nifty 50 and Sensex indices have declined markedly and continue to bleed.
On contrary, the fundraising momentum through Qualified Institutional Placements (QIPs) struck high notes in 2024, according to Anarock Research data. While retail and short-term investors react to volatility with caution, institutional investors have been doubling down on long-term growth opportunities in India’s real estate market.
“Despite market fluctuations, capital markets remain robust, and companies continue to attract strategic investments. The research shows that the real estate sector remained a dominant contributor in 2024, with eight developers and one REIT collectively raising a total of Rs 22,320 crore,’ said Anarock Group chairman Anuj Puri.
He said the robust financial positioning supports the massive influx of upcoming real estate developments.
Overall fundraising via QIPs across sectors hit an all-time high in 2024, with a total of 99 issues raising over Rs 1,41,482 crore. This amount marks a 75% increase over the previous all-time high of Rs 80,816 crore in 2020.
The real estate sector, including developers and REITs, ranked first in QIP fundraising both in terms of capital raised and the number of issues. Puri said the research firm saw twice the number of QIP issues in 2024 than in previous year.
“This sets a record for the highest number of issues in a single year. Institutional investors remain extremely bullish on the real estate sector’s growth potential,” he added.
QIPs are gaining popularity because they offer liquidity without excessive shareholder dilution and preserve ownership structures while enabling larger projects and investments. Institutional investors like mutual and pension funds bring substantial capital to fuel sectoral growth.
"The overall volatility, particularly in H2 2024, suggests a mixed outlook for QIP funding in the real estate sector in 2025," said Puri. "While tightening fiscal policies and global uncertainties may temper broader equity market sentiment, the strong performance of the real estate index despite volatility is a testament to sustained investor interest in the realty sector."
Given that QIPs are driven by institutional investor confidence, there are strong indications that large and listed developers will continue to draw significant funding in 2025. Investors seeking stability amid broader market fluctuations will see real estate as a good hedge against volatility, the Anarock report said.
Also, if global monetary policies stabilise and domestic economic indicators remain positive, QIP activity in Indian real estate will gain further momentum and continue to fuel expansion, land acquisitions, and debt refinancing among these players.