The Indian real estate sector is making a powerful comeback post-pandemic, showing a remarkable surge in credit ratings, IPO activity, and financial stability. According to a report by Colliers India, the industry has outpaced major sectors in key financial metrics, proving its resilience and growth potential.
Since 2021, nearly Rs 400 billion has been raised through IPOs in the real estate sector. This includes Rs 76 billion from seven listings in 2025 alone. The strong recovery, supported by structural reforms like RERA and GST, has made the sector more transparent and investor-friendly.
Bank credit to real estate has doubled from Rs 17.8 lakh crore in FY 2021 to Rs 35.4 lakh crore by FY 2025. It now accounts for nearly 20 per cent of total bank credit in India. Non-Performing Assets (NPAs) in construction loans have also seen a dramatic drop, falling from 23.5 per cent in 2021 to just 3.1 per cent in 2025. This reflects a significant improvement in credit quality.
The top 50 listed real estate companies have shown impressive financial improvements. In FY 2025, 62 per cent of these firms reported net profit margins above 10 per cent, up from just 23 per cent in FY 2021. Additionally, 62 per cent had debt-to-equity ratios under 0.5, showcasing aggressive deleveraging efforts.
Badal Yagnik, CEO of Colliers India, highlighted the sector’s financial strength. He noted that real estate has seen a much higher proportion of credit rating upgrades compared to other economic sectors, proving its resilience even amid external volatilities.
IPO activity is no longer limited to residential and commercial projects. Flex spaces and hospitality segments are also seeing growth. The market is also expecting a rise in REITs (Real Estate Investment Trusts) and SM-REITs, which will give retail investors easier access to real estate opportunities.
Vimal Nadar, National Director at Colliers, emphasized the sector’s diversification. With listings spanning flex spaces, hospitality, office, and residential segments, along with the anticipated rise in REITs, the future looks bright. Indian real estate continues to draw strength from long-term stability and increasing investor confidence, making it less susceptible to global uncertainties.
Favourable demographics, steady urban demand, and rising disposable incomes are keeping the outlook bullish. However, developers must remain cautious about interest rate fluctuations and regulatory challenges to sustain this upward trajectory.