Of the total real estate loan of USD 93 bn, NCR, MMR and Bangalore together account for a whopping 80% share (USD 74 bn). Of the overall loan amount extended to real estate, USD 14 bn (or 16%) is under ‘severe’ stress while nearly 62% (approx. USD 58 bn) is completely stress-free. The remaining 22% or USD 21 bn loan amount is under pressure but can potentially be resolved.
The Year 2018 was a veritable roller-coaster ride for the Indian real estate. Despite signs of recovery across segments, the liquidity crunch – further exacerbated by the NBFC crisis – put all industry stakeholders on tenterhooks.
Burgeoning commercial activity, a cutting-edge start-up culture and realistic property prices dictated by end-user demand have kept Bengaluru’s real estate market vibrant, and generally more resilient than in other cities.
Despite the ongoing pain in Indian real estate, both housing sales and new launches have increased q-o-q. The future depends on a favourable macroeconomic environment in 2019.