NEW DELHI: India’s real estate sector has raised nearly ₹400 billion through IPOs since 2021, with ₹76 billion garnered across seven IPOs in 2025 alone, according to a report by Colliers India. At the same time, bank credit to the sector has more than doubled, increasing from ₹17.8 lakh crore in FY21 to ₹35.4 lakh crore in FY25, reflecting rising institutional confidence and improved financial health of developers.
Gross bank credit in India grew from ₹109.5 lakh crore in FY21 to ₹182.4 lakh crore in FY25, with real estate now accounting for nearly 20% of total deployment. Importantly, asset quality in the sector improved, as the GNPA ratio for construction loans dropped from 23.5% to 3.1% over the same period.
Improved profitability and lower leverage
According to Colliers’ assessment of the top 50 listed real estate companies, profitability metrics have seen a marked improvement. At the end of FY25, 62% of these firms reported higher net and operating margins, up from just 23% in FY21. The improvement is attributed to higher revenue realization, better operating efficiencies, and consistent demand.
In terms of financial stability, the debt-to-equity ratio of top players has significantly declined. Over 60% of the companies now maintain a debt-equity ratio below 0.5, compared to 43% in FY21, indicating deliberate deleveraging efforts and capital discipline, even at the SPV level.
“The real estate sector has emerged as one of the most financially prudent segments of the economy, backed by consistent demand, profitability, and lower leverage,” said Badal Yagnik, CEO, Colliers India.
Real estate sees more credit upgrades than other sectors
Real estate has outperformed other sectors in credit quality, with 23% of the rated real estate portfolio receiving upgrades in H2 FY25, while downgrades stood at just 1%, according to a leading credit rating agency. By comparison, across all sectors, upgrades and downgrades stood at 14% and 6%, respectively, during the same period.
While some moderation in upgrades is expected in future quarters, Colliers expects real estate to continue outpacing other industries on credit quality parameters, driven by revenue growth, margin improvements, and prudent leverage.
Equity market access deepens with 30 IPOs since 2021
Indian real estate firms have increasingly tapped public markets to fund growth. The sector has witnessed 30 IPOs since 2021, raising a cumulative ₹400 billion, with nine IPOs in 2024 alone contributing ₹138 billion. The momentum has continued into 2025 with seven IPOs raising over ₹76 billion as of July.
The listings are also expanding beyond traditional residential and commercial developers. Companies in flex spaces, hospitality, and SM-REITs are fast-tracking IPO plans, supported by strong investor interest and regulatory reforms.
“The momentum from 2024 has continued into 2025, with diverse real estate segments—flex spaces, hospitality, and residential—lining up for IPOs. This reflects deepening investor confidence in the sector’s long-term fundamentals,” said Vimal Nadar, national director & head of research, Colliers India.
