Indian realty surge drives debt financing demand to top US$ 167.44 billion (Rs. 14 lakh crore) by 2026: Report

India's real estate sector is undergoing a robust revival driven by government initiatives, urbanization, and economic recovery. This resurgence has led to a surge in new projects and heightened demand for financing among developers and investors seeking to capitalize on favourable market conditions.

According to JLL India-Propstack analysis, the sector is poised to create debt financing opportunities exceeding US$ 167.44 billion (Rs. 14 lakh crore) from 2024 to 2026, driven by construction finance, long-term debt, and lease rental discounting (LRD). Already, the sector has witnessed over US$ 119.60 billion (Rs. 10 lakh crore) in sanctioned debt over the past five years, with expectations of a 40% increase in the next three years, Senior Managing Director, Capital Markets, India, JLL, Mr.Lata Pillai highlighted the pivotal role of regulatory reforms like RERA, GST, and REITs in boosting lender participation, with public and private sector banks jointly accounting for 68% of total debt sanctioned last year.

Co-founder & Director of Propstack, Mr.Raja Seetharaman, emphasized the sector's growth potential, projecting a significant rise in its GDP contribution by 2030. Despite past challenges, such as the IL&FS and NBFC crises and the pandemic's impact, the real estate market has rebounded strongly since 2021, offering new avenues for lenders and borrowers alike. The focus remains on leveraging various financing sources, from conventional loans to private equity and venture capital, to meet the evolving financing needs of the sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.