India’s property industry is expected to face “large-scale distress” amid rising borrowing costs and slowing access to credit that may force Indian developers into distressed sales for Indian property assets, according to Knight Frank LLP.

1.8 trillion rupees to be repaid
Indian property developers have to repay 1.8 trillion rupees ($40.8 billion) of debt to lenders over the next two to three years, said Amit Goenka, national director of capital transactions at the Indian unit of Knight Frank. Their cash flow may also be under pressure as creditors seek earlier repayments, he said.

Indian developers borrowing at 21% and 25%
Many Indian property companies borrowed at interest rates of between 21% and 25% from finance companies, while sales volumes dropped by about 50%, Sanjay Dutt of Jones Lang LaSalle Inc so the writing could be on the wall and prices could fall quickly to ensure liquidity.

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Tags: Indian property developers, Property in India, Real estate in India

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