RealtyMandi news card on real estate developers delaying IPO plans in 2026 while office REITs continue to list

Investment

Real estate IPOs stall in 2026 as housing market cools; REITs keep listing

Residential developers are delaying or reconsidering plans to list on the stock market as housing demand slows, Business Standard reported on 26 July 2026. Before the slowdown, the sector had been expected to raise about ₹15,000 crore through initial public offerings (IPOs) across FY26 and FY27, led by Noida-based BPTP, M3M group-owned Smartworld Developers, Gaursons India and Mumbai's Wadhwa group. According to the report, some companies have shelved their plans and others have pushed back their timelines.

What changed

The caution follows a softer patch in home sales. Anarock's data showed housing sales across the top seven cities falling 6% year on year in April–June 2026 to about 90,715 units, even as average prices rose 7%. Anarock linked the slowdown to the West Asia conflict and uncertainty in the IT/ITeS sector. Knight Frank's half-yearly report similarly found sales across eight cities only 1% higher in H1 2026.

Anarock Capital's chief executive told Business Standard that companies and bankers had become more careful, with many waiting for the dust to settle before going ahead with new listings. An industry executive quoted in the same report said developers had grown more cautious as residential sales slowed.

REITs keep raising money

Office-backed real estate investment trusts (REITs) have had a different year, reflecting steadier demand in commercial property:

  • Bagmane Prime Office REIT, which owns business parks in Bengaluru, raised ₹3,405 crore through a fresh issue of ₹2,390 crore and an offer for sale of ₹1,015 crore at ₹95–100 per unit. The issue ran from 5 to 7 May 2026 and was subscribed 16.50 times. The sponsor had filed draft papers in late 2025 for an issue of up to ₹4,000 crore.
  • PropShare Celestia, a small and medium (SM) REIT scheme, offered fresh units worth up to ₹244.65 crore at ₹10 lakh to ₹10.50 lakh per unit, with bidding from 10 to 16 April 2026.

Wadhwa takes a first step

Since the July report, Wadhwa Group Holdings, the holding company of Mumbai developer The Wadhwa Group, has started the IPO process by pre-filing its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) through the confidential route, Business Standard reported on 30 September 2026. The issue size, valuation and timeline have not been disclosed. A confidential pre-filing does not guarantee a listing; the company would still need to file an updated draft publicly before any offer opens.

What it means for homebuyers and investors

For homebuyers, a delayed IPO does not by itself change anything about an ongoing project, but it is a reminder that developers' access to capital depends on market conditions. Buyers in under-construction projects can track progress through quarterly updates on the state RERA website, and should check the project's registration, approvals and construction status before committing money.

For investors, the contrast between REIT listings and paused developer IPOs mirrors the split in the property market itself: office leasing has held up, driven by global capability centres, while housing sales have plateaued. RealtyMandi does not offer investment advice; anyone considering a listed real estate product should read the offer document and consult a registered adviser.

Readers following the residential market can browse homes for sale in Mumbai or catch up on more market coverage on the RealtyMandi blog.

Sources

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