Indian real estate raises ₹400 billion via IPOs since 2021: Colliers
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
5 minutes ago
- India.com
Why Nikki Haley's Advice To Trump Over Tariffs Could Shift How America Handles India, China And Russian Oil
Washington DC: Former U.S. Ambassador to the United Nations Nikki Haley has slammed President Donald Trump for announcing plans to 'very substantially' raise tariffs on Indian imports, following New Delhi's continued oil purchases from Russia. In a post on X, she said that while India's oil trade with Russia is a valid concern, China, which is currently the largest buyer of Russian and Iranian oil, has been granted a 90-day tariff pause. 'India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don't give China a pass and burn a relationship with a strong ally like India,' she posted. India should not be buying oil from Russia. But China, an adversary and the number one buyer of Russian and Iranian oil, got a 90-day tariff pause. Don't give China a pass and burn a relationship with a strong ally like India. — Nikki Haley (@NikkiHaley) August 5, 2025 Trump had said he would raise tariffs on Indian goods 'very substantially' within 24 hours, calling out India's continued energy trade with Russia. 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' he wrote in an earlier post on Truth Social. He further added, 'They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.' Trump also heighted, in an interview with CNBC, that India's existing tariffs on American imports were too high, although he did not specify a revised rate. India's Ministry of External Affairs issued a response shortly after the U.S. announcement, calling the proposed action 'unjustified and unreasonable'. MEA spokesperson Randhir Jaiswal said the decision to import oil from Russia came after traditional suppliers shifted exports to Europe during the Ukraine conflict. He added that the United States had previously acknowledged India's decision as necessary for global energy market stability. He clarified that India's energy imports serve domestic needs and ensure stable pricing for consumers. 'This is a necessity compelled by the global market situation,' he said. He emphasised that countries raising concerns about India's trade with Russia are themselves engaged in similar commerce. The European Union's bilateral goods trade with Russia stood at 67.5 billion euro in 2024, with an additional 17.2 billion euro in services recorded the year before. EU imports of liquefied natural gas from Russia reached a record 16.5 million tonnes this year. The data also showed that Europe's imports from Russia included chemicals, fertilizers, mining products, steel and machinery. Meanwhile, the United States continues to import Russian uranium hexafluoride for nuclear power, palladium for electric vehicles and other industrial goods. Jaiswal reiterated that India's trade decisions are based on market dynamics and national priorities. 'Our ties with any country stand on their merit and should not be seen from the prism of a third country,' he said. He also added that India and Russia maintain a 'steady and time-tested partnership'. In late July, the United States had announced a 25 percent reciprocal tariff on Indian goods. Around the same time, America and China agreed to a temporary reduction in their own tariffs under a 90-day pause, during which U.S. tariffs were brought down from 145% to 30% and Chinese duties from 125% to 10%, according to Al Jazeera. The discussion around tariffs and trade continues at a time when concerns over rising global crude prices persist. Analysts have warned that any major disruption in oil supply lines, including India's imports from Russia, could impact global energy markets.
Hindustan Times
5 minutes ago
- Hindustan Times
Delhi to Manila direct flights set to begin on October 1, says MEA
In a significant step towards enhancing regional connectivity between India and the Philippines, direct flights from Delhi to Manila are expected to commence operations from October 1 this year, the Ministry of External Affairs stated on Tuesday. President Marcos announced visa-free entry privileges for Indian tourists, while PM Modi reciprocated with a similar scheme for Filipino tourists.(Arvind Yadav/Hindustan Times) During a special press briefing on the occasion of the state visit of the President of the Philippines, Ferdinand R. Marcos Jr, to India, the MEA indicated that the two countries are exploring possibilities of expanding air links to additional destinations shortly to provide a strong impetus to tourism, business, and people-to-people contacts between the two countries. "Direct Air India flight connectivity from Delhi to Manila will be operational from the 1st of October to the Philippines, hopefully. Further discussions on destinations and how to expand will be further," the MEA stated. Earlier today, during the joint press statement, President Marcos announced visa-free entry privileges for Indian tourists, while PM Modi reciprocated with a similar scheme for Filipino tourists. "I reiterated our introduction of visa-free entry privileges and extended our invitation for more Indian tourists to visit the Philippines. I thank Prime Minister Modi in turn for the introduction of a scheme to grant visas free of charge to Filipino tourists travelling to India. We welcome the resumption of direct flights from October this year and have renewed our commitment to sustaining and expanding such direct air connectivity," he said. Prime Minister Narendra Modi welcomed the decision, noting that India has also agreed to offer free e-visas to tourists from the Philippines. "We welcome the Philippines' decision to allow visa-free entry to Indian tourists. India has also decided to allow free e-visas for the Philippines' tourists. This year, work will be done regarding direct flights between India and Manila," PM Modi stated. The Philippines' President is on a five-day visit to India from August 4 to August 8. The visit marked a new era of closer engagement between the Philippines and India, with both nations poised to enhance their cooperation in various areas. President Marcos will also be meeting with President Droupadi Murmu later in the day.
Mint
5 minutes ago
- Mint
Best stock recommendations today: MarketSmith India's top picks for 6 August
Technically, the Nifty 50 continues to find support at its 100-EMA, providing short-term stability. The RSI has been moving sideways and is currently positioned at 40, indicating a lack of momentum. Additionally, the MACD remains in a negative crossover, trading below both its signal line and the zero axis. This combination of indicators suggests a cautious near-term outlook, with momentum still subdued. A strong reversal seems unlikely unless the index decisively breaks through key resistance levels, accompanied by sustained buying pressure. Two stock recommendations by MarketSmith India: Bharti Airtel Ltd (current price: ₹1,931.8) Why It's recommended: Strong financial performance, diversified business model, technological advancements, and international expansion Key metrics: P/E: 40.44 | 52-week high: ₹2,045.80 | Volume: ₹996.80 crore Technical analysis: Reclaimed its 50-DMA Risk factors: Regulatory and legal risks, geopolitical and currency risks in international markets, operational and strategic risks Buy: ₹1,912–1,970 Target price: ₹2,090 in two to three months Stop loss: ₹1,850 Fertilizers and Chemicals Travancore Ltd (current price: ₹968) Why it's recommended: Strong government backing and market position, healthy capacity utilization and operating scale, diversified product mix and engineering services Key metrics: P/E: 3,645.33 | 52-week high: ₹1,070 | Volume: ₹134.93 crore Technical analysis: Downward-sloping trendline breakout Risk factors: Regulatory and subsidy risk, feedstock constraints and input cost pressures Buy at: ₹955–970 Target price: ₹1,060 in two to three months Stop loss: ₹925 How Nifty 50 performed on 5 August Indian equity indices gave up part of their previous session's gains to end lower, with the Nifty closing below 24,700, pressured by broad-based sectoral selling, barring Auto stocks. The Nifty 50 declined 73.20 points, or 0.30%, to settle at 24,649.55. After a muted start, markets slipped into the red following recent statements from the US President. The Nifty briefly fell below 24,600 during intraday trade. However, selective buying in Auto stocks helped pare some of the losses. Sector-wise, the Nifty Auto rose 0.4%, emerging as the lone gainer, while Banking, IT, Oil and Gas, FMCG, and Pharma sectors declined around 0.5% each. In today's trade, both benchmark indices declined in three of the last four trading sessions, resuming their downward trend after Monday's brief pause. Technically, the Nifty 50 continues to find support at its 100-EMA, providing short-term stability. The RSI has been moving sideways and is currently positioned at 40, indicating a lack of momentum. Additionally, the MACD remains in a negative crossover, trading below both its signal line and the zero axis. This combination of indicators suggests a cautious near-term outlook, with momentum still subdued. A strong reversal seems unlikely unless the index decisively breaks through key resistance levels, accompanied by sustained buying pressure. According to O'Neil's methodology of market direction, market status has been downgraded to an "Uptrend Under Pressure" as the Nifty breached its "50-DMA" and the "distribution day count" rose to seven. The index continues to exhibit a consolidation pattern, trading firmly above its 100-EMA and oscillating within 24,500-24,800. A decisive breakout above 24,900 could signal renewed bullish momentum, potentially propelling the index toward 25,300. On the downside, immediate support lies in 24,480-24,400, where buying interest may emerge. However, a breach below this range could open the door for a corrective move toward 24,200. Price behaviour around these critical levels will be key in shaping the index's near-term trajectory. How Nifty Bank performed yesterday On Tuesday, the Nifty Bank opened on a weak note and experienced heightened volatility throughout the session. The index remained in negative territory and closed 259 points (-0.47%) lower. It formed a bearish candle on the daily chart, reflecting a lower-high and lower-low price structure. The index opened at 55,545.05 and traded within a narrow range, reaching a high of 55,648.15 and a low of 55,202.85. The persistent weakness suggests continued pressure, and the index's outlook remains bearish in the near term. The momentum indicator, RSI, continues to decline, currently hovering around 36, indicating a weakening underlying strength. In addition, the MACD formed a negative crossover, reinforcing the bearish momentum in the short term. Despite these technical challenges, O'Neil's methodology of market direction classifies Nifty Bank as being in an "Uptrend Under Pressure". This designation reflects a fragile market environment, characterized by growing caution and early signs of institutional selling, signalling potential risks in the near-term outlook. The Nifty Bank closed on a negative note and is gradually approaching its 100-DMA, currently positioned around 54,689, just 1.21% below the current level. This moving average could serve as a key support level, potentially prompting a trend reversal. However, a breach of this support may lead to increased negativity and heightened volatility, signalling further downside risks. MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website. Trade name: William O'Neil India Pvt. Ltd. Sebi Registration No.: INH000015543 Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
