Record-breaking real estate IPOs in India raise Rs 13,500 cr in 2024 so far

India's real estate sector witnessed a record surge in initial public offerings (IPOs), with 123 IPOs listed till October 20 this year, already surpassing the total for 2023, signaling economic optimism and ample market liquidity.

 

The real estate IPOs raised close to Rs 13,500 crore in 2024, nearly twice the amount raised in the previous year, according to Colliers India.

 

Moreover, retail and institutional investor participation is rising, boosting corporate earnings and market credibility. Since 2010, 47 real estate IPOs have listed, raising over Rs 30,000 crore in the post-pandemic era (2021 onwards) alone. 

 

The growth is driven by robust housing demand, increased office leasing activity, expansion efforts by flexible space operators, and a rise in tourism. Overall, Colliers stated that market sentiment in the real estate sector remains positive.

 

Since 2021, 21 real estate IPOs raised Rs 31,900 crore, doubling funds from 2017-2020. Housing Finance Companies (HFCs) led with 46 per cent of capital raised, followed by REITs at 22 per cent, while residential developers raised Rs 5,600 crore, a 10-time increase.

 

“At over 30 per cent gains, the year-to-date performance of the BSE Realty Index has been impressive, significantly outpacing the Sensex. Interestingly, almost one-fifth of the real estate IPOs since 2010 have outperformed even the realty index in 2024. Over 90 per cent of the real estate IPOs listed in the ongoing year have been oversubscribed, an indication of positive market sentiment and investor confidence in the sector,” said Vimal Nadar, senior director & head of Research, Colliers India.

 

Furthermore, Colliers noted that strong demand in residential, commercial, and retail sectors is likely to sustain momentum for IPOs by real estate developers, HFCs, and REITs, particularly those with Grade A offices and malls. Anticipated reductions in lending rates could further stimulate real estate activity.

 

In 2024, Bajaj Housing Finance, Aadhar Housing Finance, Juniper Hotels, Apeejay Surrendra, Park Hotels, Awfis Space Solutions, Arkade Developers, and Garuda Construction and Engineering have filed for initial public offerings (IPOs), according to industry sources.