India commercial real estate debt market to expand by 40 percent in the next three years

India’s commercial real estate debt market will provide lenders with a potential of a $170 billion financing opportunity between 2024 and 2026, according to a JLL-Propstack’s report Decoding debt financing: opportunities in Indian real estate.

Lenders will likely be presented with a substantial growth opportunity to cater to the needs of landlords and developers soon. This opportunity comes from two primary market segments, the construction finance or long-term debt, and lease rental discounting, both slated for unprecedented growth during the 2024-2026 period.

It is estimated that the long-term debt requirement in the residential market itself will amount to nearly $52 billion until 2026. Furthermore, India’s real estate construction market, comprising other asset classes like class-A commercial offices, high-quality malls, warehousing parks, and data centers collectively is predicted to experience a 35 percent to 40 percent growth trajectory over the s