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Real Estate >> News
The Real Estate Sector and Its Increasing Funding
By
siliconindia
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Friday, November 22, 2013
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The Reserve Bank of India (RBI) has released the figures of the banking institution's exposure which has augmented during the last 4 to 5 quarters of the financial years. Primarily riding upon the credit flow to the construction sector, the bank's outflow to this sector has nearly doubled during this period. This hike in the flow of credit goes in tandem with the appreciation of asset's values in the urban India.
An exposure, ranging from 20 to 24 percent (adjusted for the total bank credit for various sectors) has been channeled by the banks towards the real estate sector. Along with the nationalized banks, private lending sector has also come up to aid the growth and development in the realty sector of India.
The figures released by the RBI have come to notify a stature which shall be dealt with caution for the financial regulation in the country. However, the real estate sector has an antithesis to bank upon and move ahead with a substantial recovery, towards a path of future progress.
Not just the financial institutions in the country, the Private Equity investors (national and multinational), and various funds like the sovereign, pension and other venture capitalists have sited the India realty sector to be the sanctuary for safer investments.
The subsector of real estate like the hospitality has been expanding with Hotel groups like Marriott International has been watching the realty sector for its growth prospects. This group envisions expanding its operations in India and opening 100 hotels over the coming future.
The commercial and industrial construction in India is also being witnessed to be striding back on the way to grow. The demand for upmarket office spaces and the industrial warehouses in the surrounds of transit links; expressways have upheld the good demand and supply equation in the past.
The real estate sector in India has advanced to be observed as a domain which has more or less remained resilient to the short term dynamics in the economy. Being the backbone of growth in any industry, the realty sector has been faring well in the past and along with the diversifying sources of investment, this sector is expected to grow further in the coming future.
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