Not only have real estate prices sky-rocketed in the past few years, bank loans to the Indian real estate sector has also soared at least four times, according to a real estate consultant which said it assessed the aggregate financials of the top 50 listed real estate companies in India on profitability, gearing, and market performance parameters.
In a statement on Tuesday, Colliers India said bank credit to the real estate sector in India stood at ₹35.4 lakh crore at the end of March, 2025.
“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,” the consultant said.
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With the sector’s access to credit improving significantly in absolute terms, said the consultant, it is no surprise that it now accounts for one-fifth of the deployment of bank credit in the country, thereby signalling growing lender confidence in the sector.
“Gross bank credit in India has grown significantly, from ₹109.5 lakh crore in FY21 to ₹182.4 lakh crore in FY25. Bank credit in the real estate sector has impressively doubled in the same period, from ₹17.8 lakh crore to ₹35.4 lakh crore,” it said, citing Reserve Bank of India (RBI) data.
Badal Yagnik, Chief Executive Officer of Colliers India, said that external volatilities had failed to shake the real estate sector’s resilience and financial prudence.
“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.
Around 62 per cent of the top 50 listed real estate firms had shown 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, the data revealed.
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