World Bank's Mishra: India's Real Estate Cycle Has Turned
Neelkanth Mishra, India's Executive Director at the World Bank, says India has come out of the deleveraging forced by earlier excess lending and the insolvency code, and that the real estate and investment cycles are now turning, in an interview published on October 15.
What did he say?
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Private capital spending is beginning to move in steel, cement, power and data centres, though not as strongly as 2007 to 2012-13 growth
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Trend growth is well above 7%, and 7%-plus GDP growth is achievable
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The risks are high crude oil prices and the cost of capital
How does that fit the numbers?
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RBI: raised its FY27 growth forecast to 7.1% on October 7, while also raising the repo rate to 5.50%
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Investment: CBRE reported a record $9.5 billion of equity inflows into real estate, data centres and hospitality in Q3, with data centres about 57%
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Developers: Q2 sales were up 20% at Prestige, 62% at Puravankara and 52% at Kolte-Patil
What are the cautions?
Rate hikes and oil prices could slow demand, especially for price-sensitive buyers. A cycle "turning" describes direction, not guaranteed momentum.
Why it matters for buyers and investors
Capital flowing into construction supports supply, jobs and incomes, but costlier funding can raise prices. Check developers' balance sheets and delivery records.
FAQ
Who is Neelkanth Mishra? India's Executive Director at the World Bank. What are the main risks he flagged? High crude oil prices and the cost of capital.