NEW DELHI: Since 2021, India’s real estate sector has raised nearly ₹400 billion through IPOs, with ₹76 billion raised from seven IPOs in 2025 alone, according to a report from Colliers India. Concurrently, bank credit to the sector has more than doubled, rising from ₹17.8 lakh crore in FY21 to ₹35.4 lakh crore in FY25, indicative of growing institutional confidence and improved financial health of developers.
Total bank credit in India surged from ₹109.5 lakh crore in FY21 to ₹182.4 lakh crore in FY25, with real estate now representing nearly 20% of this total. Notably, the asset quality in this sector has improved significantly, with the GNPA ratio for construction loans dropping from 23.5% to 3.1% during the same timeframe.
Enhanced Profitability and Reduced Leverage
Colliers’ analysis of the top 50 listed real estate firms reveals significant improvement in profitability metrics. By the end of FY25, 62% of these companies reported increased net and operating margins, up from just 23% in FY21. This growth is attributed to improved revenue realization, operational efficiencies, and consistent demand.
In terms of financial stability, over 60% of leading firms now report a debt-to-equity ratio below 0.5, compared to 43% in FY21, reflecting a concerted effort to reduce leverage and maintain capital discipline at the SPV level.
“The real estate sector has emerged as one of the most financially responsible segments of the economy, bolstered by steady demand, profitability, and lower leverage,” stated Badal Yagnik, CEO of Colliers India.
Real Estate Outshines Other Sectors in Credit Upgrades
The real estate sector has performed better than others in terms of credit quality, with 23% of rated real estate portfolios receiving upgrades in H2 FY25, while downgrades were only 1%, as per a prominent credit rating agency. In contrast, across all sectors, upgrades and downgrades were 14% and 6% respectively during the same period.
Although some moderation in upgrades is anticipated in upcoming quarters, Colliers expects real estate to continue outperforming other industries concerning credit quality, driven by revenue growth, margin enhancements, and prudent leverage practices.
Increased Access to Equity Markets with 30 IPOs Since 2021
Indian real estate firms have increasingly utilized public markets for funding, with 30 IPOs since 2021 generating a total of ₹400 billion. Notably, nine IPOs in 2024 alone amassed ₹138 billion. This upward trend has persisted into 2025, with seven IPOs raising over ₹76 billion by July.
The scope of listings is also expanding beyond traditional residential and commercial developers. Companies in sectors like flex spaces, hospitality, and SM-REITs are accelerating their IPO strategies, driven by robust investor interest and regulatory changes.
“The momentum from 2024 is continuing into 2025, with a variety of real estate segments—including flex spaces, hospitality, and residential—preparing for IPOs. This indicates deepening investor confidence in the sector’s long-term fundamentals,” remarked Vimal Nadar, National Director & Head of Research at Colliers India.
