According to the sectoral credit data for October 2023, banks’ lending to commercial real estate in October jumped by 35.6 percent compared to 10.7 percent.
Bank credit commercial real estate sector jumped in October 2023, data from the Reserve Bank of India (RBI) showed. In absolute figures, lending to real estate jumped to Rs 4.24 lakh crore compared to Rs 3.12 lakh crore.
For commercial real estate, India’s real estate sector is expected to expand to $5.8 trillion by 2047. Additionally, lenders are slowly shedding the cautious approach adopted after the IL&FS crisis of 2018 when defaults by the company caused a liquidity crisis. “Lenders like banks are becoming aggressive in lending to the commercial real estate sector,” said Pankaj Kapoor, founder of Liases Foras Real Estate Rating and Research.
