Oct. 28 in Mumbai A study released on Monday showed that Indian real estate companies raised Rs 12,801 crore through qualified institutional placements (QIPs) in the first nine months of this year. This is more than 17% of the total Rs 75,923 crore raised through QIPs across all sectors.

The second most money raised through QIP so far this year has been in real estate, after green energy.

Chairman of Anarock Group Anuj Puri said, “This strong QIP activity shows how important the sector is to India’s larger capital markets and how institutional investors’ faith in Indian real estate is growing.”

The study says that increased openness, a strong domestic real estate recovery after the pandemic, and high investor trust are some of the things that are causing a rise in activity. This sets the sector up for continued growth.

Public companies can get money through the QIP way by selling stocks or securities that can be converted into stocks to big buyers who have already been approved. This way of getting money lets businesses skip the more common initial public offering (IPO) process and quickly get a lot of money.

Strong growth in home sales after the pandemic has led major builders to flood markets with relevant inventory.

A study says that between 2021 and this year (January–September), over 13.62 lakh units have been released in the top seven towns.

At the same time, sales of homes in these areas have gone through the roof, reaching nearly 14.36 lakh units during this time. Even though a lot of new homes were being built at the same time, the number of empty homes dropped by over 10% during this time.

These companies are using IPOs and QIPs to get the money they need to quickly grow. Their success in these attempts to raise cash shows that the sector can still draw in both individual and institutional investors. “We think the number of investors will grow by a huge amount over the next few years,” Puri said.

At the same time, the high demand for homes after the pandemic has led developers to raise money through initial public offerings (IPOs) to pay for the start of new projects all over the world. Over the course of six companies’ IPOs since 2021, a total of Rs 5,275 crore has been collected.