Debt burden of top eight real estate companies reduced by 43 percent in three years: Anarock

New Delhi. The net debt burden of the top eight companies in the real estate sector has come down by 43 per cent from around Rs 40,000 crore in FY 2019-20 to Rs 23,000 crore in the last financial year (2022-23). Real estate consultant company Anarock said that the debt on real estate companies has come down due to the huge demand for homes. According to Anarock, the strong demand for homes across the country has enabled major large and listed developers to reduce their debt. Anarock analyzed the financial performance of the top eight companies operating in residential real estate. These companies are DLF, Macrotech Developers (Lodha Brand), Godrej Properties, Prestige Estate Projects, Shobha, Brigade Enterprises, Purvankar and Mahindra Lifespace Developers Limited.

Net debt on the top eight listed real estate companies is expected to come down from Rs 40,500 crore in FY 2019-20 to around Rs 23,000 crore in FY 2022-23. The average cost of debt on these eight companies has come down from 10.3 per cent in 2019-20 to nine per cent in 2022-23. In the financial year 2020-21, the interest rate was 9.05 percent while in 2021-22 the loan cost was 7.96 percent. Anuj Puri, chairman of Enrock, said, “The decline in gross debt was bound to be driven by an increase in sales and revenue.” He said that the sales of the distributors have crossed the pre-Covid-19 level and are moving towards new heights.

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