The Real Estate sector has emerged as the leader in fundraising via issuance of Qualified Institutional Placements (QIP) in the calendar year 2024. According to data from Anarock, in CY 2024, QIP issuances across all sectors stood at Rs 1,41,482 crore, with real estate contributing Rs 22,320 crore (16 percent) – the highest of the total QIPs issued.
Data showed that nine real estate firms and one REIT (Real Estate Investment Trust) collectively raised Rs 22,320 crore via QIP route in 2024. The largest fundraise via QIPs was done by Godrej Properties at Rs 6,000 crore followed by Prestige Estates Project Limited at Rs 5,000 crore.
Other realty firms which issued QIP include Macrotech Developers or Lodha Group (Rs 3,300 crore), Brigade Enterprises Limited (Rs 1,500 crore), DB Realty Limited (Rs 920 crore), Keystone Realtors (Rs 800 crore), Max Estates Limited (Rs 800 crore) and Delhi-NCR based Anant Raj Limited (Rs 500 crore). Brookfield India REIT raised Rs 3,500 crore via QIP route.
QIPs allow publicly traded companies to raise capital by offering equities or securities convertible into equity to pre-approved institutional buyers.
In 2023, a total of 43 QIP issues raised about Rs 55,109 crore across sectors, closely matching the total QIP fundraise of Rs 56,152 crore in 2017. The real estate fund raising through QIPs in 2023 was nil, meaning that real estate developers did not raise any funds via this route in 2023.
Anuj Puri, Chairman – ANAROCK Group, said that the surge in QIP fundraising in 2024 highlights the real estate sector’s strength amid strong institutional confidence in India’s economic fundamentals.
“Despite market fluctuations, capital markets remain robust, and companies continue to attract strategic investments. The real estate sector remained a dominant contributor in 2024, with eight developers and one REIT collectively raising a total of Rs 22,320 crore. The real estate sector, including developers and REITs, ranked first in QIP fundraising both in terms of capital raised and the number of issues,” says Puri.
He said that the year 2024 saw twice the number of QIP issues than in the previous year. This sets a record for the highest number of issues in a single year.
Experts said that these trends show that the institutional investors remain extremely bullish on the real estate sector’s growth potential.
The data also showed that the overall fundraising via QIPs across sectors too hit an all-time high in 2024 with a total of 99 issues raising over Rs 1,41,482 crore. This issue amount marks a 75 percent increase over the previous all-time high of Rs 80,816 crore in 2020.
Other prominent contributors in QIP issuance are Power (12 percent), Metals and Mining (11 percent), Banks (8 percent), IT/ITES (8 percent), FMCG (6 percent), Healthcare (5 percent), Automotive and Transport (4 percent), Textile (4 percent), Automobile and Ancillaries (4 percent), Capital Goods (3 percent), Financial Services (3 percent), Trading (3 percent) and Others (13 percent).
Factors driving QIP traction
Experts said that robust housing sales growth, strong post-pandemic recovery, surge in residential sales value and transparency in the sector are some of the key factors driving the QIP traction.
Experts said that 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.
Market observers said that a successful QIP boosts market credibility and sends out strong growth potential signals, thereby attracting even more investments. Collectively, these benefits accelerate project timelines and allow developers to execute ambitious expansion.
Future Outlook
Experts said 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. Investors seeking stability amid broader market fluctuations will see real estate as a good hedge against volatility.
“The overall volatility, particularly in H2 2024, suggests a mixed outlook for QIP funding in the real estate sector in 2025,” Puri said.
He added the strong performance of the realty index despite volatility is a testament to sustained investor interest in the realty sector.
