GST, RERA have changed contours of business in real estate, says report
In wake of banks moderating their real estate lending growth due to issues related with asset quality and capitalization, the market share of NBFCs and HFCs would
continue to expand in the real estate financing space, India Ratings report said. The ability to structure loans, low credit costs, collateral comfort and attractive
yields along with regulatory arbitrage will help in loan growth of non-banking finance companies (NBFCs), the report said. Nevertheless, rise in competition in the real
estate sector has led to compression of yield by 150-250 basis points in wake of declining sales velocity in the residential real estate sector.
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