Realty’s next phase: Developers shift focus from debt cuts to new projects
A Nuvama Research report indicates that Indian real estate developers are shifting their strategy from debt reduction to capital deployment for new projects. This transition marks the middle stage of the current housing cycle as firms leverage stronger balance sheets to build assets.
Why it matters
This shift signals increased confidence in the Indian property market and a potential rise in construction activity and infrastructure development.
India’s residential property market is moving into a different phase of its current cycle, with developers increasingly putting money to work rather than concentrating on repairing their balance sheets, Nuvama Research said in a report.The brokerage’s analysis of 21 real estate developers found that operating cash generation has held steady even as there have been concerns over slower sales volumes. Industry collections crossed Rs 1 trillion and operating cash profits expanded, but cash EBITDA margins fell to 39 per cent in FY26 from 42 per cent in FY25.Nuvama attributed the margin pressure mainly to a lower proportion of inventory being sold at the launch stage.
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