It’s ironic that a sector worth $140 billion that has weathered the market crash twice in the last around a decade and still emerged as the fastest growing contributor to the GDP has not been granted even industry status in India.
Mumbai is the financial capital of the country. While it is still a far cry from being comparable to Shanghai in terms of aesthetics and infrastructure, the fact remains that most large corporations and financial institutions have their presence in this city.
With the return of confidence in the sector, Indian real estate players are now once again looking at private equity funding. That said, the industry still depends heavily on bank debt, NBFC funding and end-user advances. This is because bank debt is a cheaper option, and also because it offers flexible tenures.