Real Estate Debt Financing in India: Unveiling a Rs 14 Lakh Crore Opportunity

The real estate sector in India experienced debt sanctions of Rs 9.63 lakh crore from 2018-23 and is poised for an additional Rs 14 lakh crore in debt financing over the next three years. Mumbai, Delhi-NCR, and Bangalore accounted for 80% of total debt. Despite challenges, opportunities abound.

The real estate sector in India has seen a significant debt sanctioning of Rs 9.63 lakh crore during the 2018-23 period, paving the way for further debt financing opportunities amounting to Rs 14 lakh crore over the next three years, as revealed by a joint report from JLL India and Propstack.

In the comprehensive report titled 'Decoding Debt Financing: Opportunities in Indian Real Estate,' JLL India and Propstack highlighted the average annual debt sanction figure of Rs 1,61,000 crore over the past six years.

This report underscores the dominant role of Mumbai, Delhi-NCR, and Bangalore, which together claimed 80% of the total debt sanctioned, emphasizing their pivotal position in the market. However, the sector faced hurdles with the IL&FS and NBFC crisis in 2018 and the pandemic's impact in 2020, which led to a market slowdown.

Despite these challenges, the resurgence in real estate markets since 2021 has opened up new prospects for both lenders and borrowers, marking an era of promising opportunities.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)