NBFC Crisis – Is India’s real estate on Tenterhooks?

Real Estate

It may be true that ‘when the going gets tough, the tough gets going,’ but this doesn’t hold true for the Indian real estate sector currently. The ongoing NBFC crisis post IL&FS default has made things even more difficult for developers.

Post the banking system’s freeze on real estate funding due to rising non-performing assets, NBFCs and HFCs were the sole source of funds for the cash-strapped developers. Now, however, NBFCs themselves are struggling and their loan disbursals to developers have slowed down significantly.

A source of broad spectrum dismay and despair, the NBFC crisis needs to be resolved as soon as possible or the real estate sector's much-anticipated recovery will be postponed by a couple of quarters more.

As a Credit Suisse report