by THO
Real estate firms dominated the qualified institutional placements (QIP) market in 2024 by raising a record ₹22,320 crore, according to data shared by Anarock.
The real estate sector accounted for about 16% of qualified institutional placements (QIPs) in 2024, with eight developers and one REIT collectively raising ₹22,320 crore, the highest share actions sectors in terms of the funds raised, the report said.
Overall, Indian companies raised ₹1,41,482 crore through 99 QIPs in the year – a record. QIPs fundraising across sectors increased by 75% over the previous record of ₹80,816 crore in 2020.
Also Read: Real estate developers raise ₹12,801 crore via QIP between Jan-Sep period
“ANAROCK’s analysis of the surge in QIP fundraising in 2024 highlights the real estate sector’s continued might amid strong institutional confidence in India’s economic fundamentals. Despite market fluctuations, capital markets remain robust, and companies continue to attract strategic investments,” Anuj Puri, Chairman – ANAROCK Group said.
“Our research shows that the real estate sector remained a dominant contributor in 2024, with eight developers and one REIT collectively raising a total of ₹22,320 crore. In short, robust financial positioning supports the massive influx of upcoming real estate developments,” he added.
The report added that the real estate sector, including developers and REITs, ranked first in QIP fundraising both in terms of capital raised and the number of issues. “Notably, we saw twice the number of QIP issues in 2024 than in the 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,” Puri said.
Also Read: Godrej Properties launches QIP to raise up to ₹6,000 cr
Developers did not raise any funds via QIP in 2023
The report said that in 2023, a total of 43 QIP issues raised about ₹55,109 crore across sectors, closely matching the total QIP fundraising of ₹56,152 crore in 2017.
However, the real estate fundraising trend through QIPs in 2023 was nil, meaning that real estate developers did not raise any funds via this route that year.
Outlook for 2025
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, the report said.
“The overall volatility, particularly in H2 2024, suggests a mixed outlook for QIP funding in the real estate sector in 2025,” says 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.”
Anarock added that investors seeking stability amid broader market fluctuations will see real estate as a good hedge against volatility. Also, if global monetary policies stabilize 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, it said.
