Real Estate Bank Credit Soars to Rs 35.4 Lakh Crore: A Sign of Sector Resilience
Bank credit to India's real estate sector has nearly doubled to Rs 35.4 lakh crore over the past four years, reflecting strong lender confidence and sector resilience. This growth indicates a marked improvement in financial health and performance.
Real EstateBank CreditFinancial HealthLender ConfidenceMarket PerformanceReal Estate NewsJul 29, 2025
New Delhi, Jul 29 (PTI) Bank credit to the Indian real estate sector stood at Rs 35.4 lakh crore at the end of March 2025, nearly doubling in the last four years, according to real estate consultant Colliers India. The consultant assessed the aggregate financials of the top 50 listed real estate companies in India, focusing on profitability, gearing, and market performance.
India's real estate sector has continued to exhibit marked improvement 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. 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 FY21 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, according to 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 sector continues to demonstrate resilience and financial prudence even in the wake of external volatilities, said Badal Yagnik, Chief Executive Officer of Colliers India. He added that 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 & warehousing, retail, and hospitality. The top 50 listed real estate companies have shown impressive improvements in terms of profitability, cash flow realisation, and balance sheet performance over the last five years.
Around 62 per cent of the top 50 listed real estate firms had higher profitability margins at the end of FY25 as compared to the 23 per cent share in FY21. More than 60 per cent 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. This data highlights the sector's strong financial position and its potential for sustained growth in the future.
Frequently Asked Questions
What is the current bank credit to the Indian real estate sector?
The bank credit to the Indian real estate sector stood at Rs 35.4 lakh crore at the end of March 2025.
How has bank credit to the real estate sector changed over the past four years?
Bank credit to the real estate sector has nearly doubled from Rs 17.8 lakh crore in FY21 to Rs 35.4 lakh crore in FY25.
What does the growth in bank credit signify about the real estate sector?
The growth in bank credit signifies strong lender confidence and sector resilience, indicating a marked improvement in financial health and performance.
What are the key factors supporting the higher credit quality in the real estate sector?
The higher credit quality is supported by strong demand-supply dynamics across multiple asset classes such as residential, commercial, industrial & warehousing, retail, and hospitality.
How have the top 50 listed real estate companies performed in terms of profitability and debt levels?
Around 62 per cent of the top 50 listed real estate firms had higher profitability margins at the end of FY25, and more than 60 per cent have comfortable debt levels with a debt-to-equity ratio of less than 0.5.
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