Indian Actual Property Sector Receives ₹35.4 Lakh Crore in Financial institution Credit score Amid Financial Development, ETCFO
Financial institution credit score to the Indian actual property sector stood at Rs 35.4 lakh crore on the finish of March 2025, practically doubling within the final 4 years, in accordance with Colliers.
In a press release on Tuesday, actual property guide Colliers India mentioned it has assessed the mixture financials of the highest 50 listed actual property corporations in India by way of profitability, gearing and market efficiency.
“India’s actual property sector has continued to exhibit marked enchancment by way of monetary well being within the post-pandemic period, outperforming different main industries within the financial system by way of vital credit score and monetary metrics,” the guide mentioned.
Colliers India famous that the sector’s entry to credit score has improved considerably in absolute phrases.
“Gross financial institution credit score in India has grown considerably, from Rs 109.5 lakh crore in FY21 to Rs 182.4 lakh crore in FY25. Financial institution credit score in the true property sector has impressively doubled in the identical interval, from Rs 17.8 lakh crore to Rs 35.4 lakh crore,” it mentioned, citing RBI knowledge.
The guide talked about that the true property sector now accounts for nearly one-fifth of the financial institution credit score deployment within the nation, signalling rising lender confidence within the sector.
“Indian actual property sector continues to reveal resilience and monetary prudence even within the wake of exterior volatilities,” Badal Yagnik, Chief Government Officer of Colliers India, mentioned.
He mentioned there was the next proportion of credit standing upgrades over the past fiscal in the true property sector in comparison with upward revisions in different financial sectors.
“The comparatively larger credit score high quality of actual property loans is effectively supported by underlying sturdy demand-supply dynamics throughout a number of asset courses equivalent to residential, industrial, industrial & warehousing, retail, hospitality and so forth,” Yagnik mentioned.
The highest 50 listed actual property corporations have proven spectacular enhancements by way of profitability, money circulation realisation, and steadiness sheet efficiency over the past 5 years.
Round 62 per cent of the highest 50 listed actual property corporations had larger profitability margins on the finish of FY25 as in comparison with the 23 per cent share in FY21. Greater than 60 per cent of the main actual property corporations in India have comfy debt ranges, which is mirrored within the debt-to-equity ratio of lower than 0.5 in FY25.
