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Reform-driven transparency, particularly through RERA (Real Estate Regulation and Development Act) and the GST (Goods and Services Tax) framework, has significantly reshaped debt financing in India’s real estate sector.
Under RERA, developers are required to register projects, maintain escrow accounts, and provide regular disclosures about construction progress. These measures increase accountability and reduce fund diversion, two long-standing issues that previously deterred lenders.
Overall, these reforms have helped institutionalize India’s real estate sector, shifting it away from opaque practices. As a result, debt financing has become more accessible and affordable for projects with strong fundamentals.
Moving forward, additional measures—such as digital land records—could further streamline due diligence, amplifying the positive influence of transparency on real estate lending.
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