The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

India: Real estate feels the pinch

India’s nascent and relatively isolated financial markets have been spared the worst of the credit crunch but leading corporates are feeling the squeeze in other ways.

Real estate is one of the sectors that has been hardest hit – rising interest rates haven’t helped, but Indian banks are increasingly chary of lending to a market increasingly viewed as far too risky in an increasingly conservative world.

"Nothing has really changed much for us," says Baba Kalyani, the chairman of Bharat Forge, one of India’s largest auto component makers, with operations in India, the UK, Germany and North America. "The real change has been in areas where the risk levels are higher, particularly mortgages, housing, real estate. Real estate has certainly been hurt harder here."

Saurabh Chawla, a senior vice-president of finance at India’s largest real estate firm, DLF, says that there is a "general shortage of money available [to property firms] these days".

Overpriced and overheated

Once keen to lend to property firms, India’s banks now see the domestic real estate market as overpriced and overheating, and in a globally cautious market are leading the charge away from property firms.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?