The loan exposure growth came down to 4% from 23.2% in June 2011 according to a report released by real estate consultants Knight Frank India.
“During the five-year period between financial year 2008 and 2012, the sales value of the real estate sector is down by 15%, and the net profit is down almost 67% primarily on account of interest cost going up five fold," observes the report.
The outstanding bank credit to the real estate sector stands at R5.3 lakh crore as per June 2012 data of Reserve Bank of India, it says. Of this, nearly 78% of the exposure is towards the housing-loan segment and remaining 22% is to the real estate developers.
With a slew of new projects launched in financial year 2010, the stress on real estate industry was less. “However, the consumer appetite for new launches is considerably low in the present scenario,” the consultant said.
“During the five-year period between financial year 2008 and 2012, the sales value of the real estate sector is down by 15%, and the net profit is down almost 67% primarily on account of interest cost going up five fold," observes the report.
The outstanding bank credit to the real estate sector stands at R5.3 lakh crore as per June 2012 data of Reserve Bank of India, it says. Of this, nearly 78% of the exposure is towards the housing-loan segment and remaining 22% is to the real estate developers.
With a slew of new projects launched in financial year 2010, the stress on real estate industry was less. “However, the consumer appetite for new launches is considerably low in the present scenario,” the consultant said.
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