In 2024, India’s real estate sector experienced a remarkable surge in initial public offerings (IPOs), with 123 listings by October 20, surpassing the total number for all of 2023. These IPOs have collectively raised approximately Rs. 13,500 crore (US$ 1.62 billion), nearly double the amount raised in the previous year, reflecting robust economic optimism and strong market liquidity. The increase in retail and institutional investor participation is enhancing corporate earnings and bolstering market credibility. Since 2010, the sector has seen 47 real estate IPOs that have raised over Rs. 30,000 crore (US$ 3.60 billion) in the post-pandemic period, highlighting a significant recovery and growth trajectory.
The growth in the real estate IPO market is driven by strong housing demand, increased office leasing, and a rise in tourism, contributing to positive market sentiment. Notably, the BSE Realty Index has gained over 30% year-to-date, outperforming the Sensex, with more than 90% of this year’s IPOs being oversubscribed. Key players in the market, including Housing Finance Companies (HFCs) and Real Estate Investment Trusts (REITs), are expected to continue driving IPO activity, especially those associated with Grade A properties. Anticipated reductions in lending rates may further stimulate the sector. Among the notable companies filing for IPOs in 2024 are Bajaj Housing Finance, Aadhar Housing Finance, and Juniper Hotels, signalling ongoing investor confidence in the real estate market.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.