look news india
Ahmedabad: In the 11 months from April 2023 to February 2024 of the latest financial year, banks' loans to commercial real estate grew almost three-fold to Rs. 67,485 crore as against Rs. 23,432 crores. The increase in commercial real estate loans is mainly due to relaxation in lease rents for office space.
According to Reserve Bank of India data, outstanding loans on commercial real estate as of February 23, 2024 stood at Rs. Whereas till February 2022, the outstanding loan under this head was Rs 3.9 lakh crore. 2.94 lakh crore. Therefore, in the last two years approximately Rs. There has been an increase of Rs 1 lakh crore.
India is performing well in the office leasing market. It is mainly promoted by two types of lessors. One is India's corporate and startup ecosystem which continues to perform well. Second, global competence centers of multinational companies are setting up their large campuses in India.
According to a report on the state of the economy released earlier this month, global competence centers have helped drive strong growth in demand for Grade 'A' offices. The performance of listed companies in this segment has led to a significant increase in overall leasing activities. Office leasing is growing rapidly. Developers are building office space. Banks take the documents and provide funds to developers. This has led to a rapid increase in commercial real estate lending.
Calendar year 2024 is likely to be the best year as recent demand is expected to surpass 2019 levels. Public sector bank sources said banks are comfortable giving discounts on lease rentals as these are secured loans. The premises is ready with possession certificate and tenant at the respective location.