Realtors raise ₹22,320 crore in 2024 via QIP; ₹1.41 trillion QIP fund raise in all sectors: Anarock

Real estate developers raised about ₹22,320 crore fund last calendar year by selling equity shares to investors through the Qualified Institutional Placement (QIP) route, according to Anarock.

Real estate consultant Ananrock data showed that the total fund raised through the QIP route across all sectors peaked in 2024 with 99 issues raising nearly ₹1,41,482 crore.

Real estate was a dominant contributor with 8 developers & 1 REIT collectively raising ₹22,320 crore, a 16% share in the overall fund raise through QIP.

Anarock Chairman Anuj Puri said, "Despite market fluctuations, capital markets remain robust, and companies continue to attract strategic investments."

Institutional investors remain extremely bullish on the real estate sector's growth potential, he added.

Puri said the robust financial positioning supports the massive influx of upcoming real estate developments.

As per the data, the overall fundraising via QIPs across sectors in 2024 was 75% higher than the previous all-time high of ₹80,816 crore in 2020.

Godrej Properties raised ₹6,000 crore, followed by Prestige Estates ₹5,000 crore, Brookfield India REIT ₹3,500 crore, Macrotech Developers Ltd ₹3,300 crore and Brigade Enterprises ₹1,500 crore were major players which raised funds through the QIP route in the last calendar year.

On the outlook for this year, Puri said, "The overall volatility, particularly in H2 2024, suggests a mixed outlook for QIP funding in the real estate sector in 2025".

"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," he added.

Anarock said that the QIPs are a faster and more cost-effective way for developers to raise capital than private equity and bank loans.

"They offer liquidity without excessive shareholder dilution and preserve ownership structures while enabling larger projects and investments. Institutional investors like mutual and pension funds bring substantial capital to fuel sectoral growth," it added.

The flexibility in fund allocation — whether for land acquisition, construction, or debt refinancing — adds a critical level of financial stability, the consultant said.