Real Estate Sector gains Banks' Confidence as loans double to Rs. 35.4 Lakh Crore in 4 Years – Colliers

Bank credit to the Indian real estate stood at Rs. 35.4 lakh crore at the end of March 2025, nearly doubling the last four years, according to Colliers.

In a statement on Tuesday, real estate consultant Colliers India said it has assessed the aggregate financials of the top 50 listed real estate companies in India in terms of profitability, gearing and market performance.

“India’s real estate has continued to exhibit marked improvements in terms of financial health in the post-pandemic era, outperforming other major industries in the economy in terms of critical credit and financial metrics,” the consultant said.

Colliers India noted that the sector’s access to credit has improved significantly in absolute terms.

“Gross bank credit in India has grown significantly, from Rs. 109.5 lakh crore in FY2021 to Rs. 182.4 lakh crore in FY25. Bank credit in the real estate sector has impressively doubled in the same period, from Rs. 17.8 lakh Crore to Rs. 35.4 lakh Crore,” it said citing RBI data.

The consultant mentioned that the real estate sector now accounts for almost one-fifth of the bank credit deployment in the country, signaling growing lender confidence in the sector.

“Indian real estate continues to demonstrate resilience and financial prudence even in the wake of external volatilities,” Badal Yagnik, Chief Executive Officer, Colliers India said.

He said there has been a higher proportion of credit rating upgrades during the last fiscal in the real estate sector compared to upward revisions in other economic sectors.

“The relatively higher credit quality of real estate loans is well supported by underlying strong demand-supply dynamics across multiple asset classes such as residential, commercial, industrial and warehousing, retail, hospitality, etc,” Yagnik said.

The top 50 listed real estate companies have shown impressive improvements in terms of profitability, cash flow realization, and balance sheet performance over the last five years.

Around 62 percent of the top 50 listed real estate firms has higher profitability margins at the end of FY25 as compared to the 23 percent share in FY21. More than 60 percent of the leading real estate companies in India have comfortable debt levels, which is reflected in the debt-to-equity ratio of less than 0.5 in FY25.

(With inputs from Press Trust of India)