Construction finance, LRD rates lowest in 10 yrs for top realtors: Experts

For large but overstretched firms and mid-sized and small developers, sourcing loans is still difficult

Borrowing rates for construction financing, lease rent discounting, and other loans are heading south for realty majors.

Rates have been the lowest for top developers in the past 10 years, say experts, adding that sourcing loans is still a difficult task for large but overstretched, as well as mid and small developers. The rate for construction financing was down to 9.5 per cent in Q2CY20 from 11-12 per cent a couple of quarters back. It stood at 11.8 per cent in Q2CY19, according to CRE MATRIX.

Lease rent discounting (LRD), in which developers discount their future rent receivables, has also dipped due