The report observed that default by leading NBFC, IL&FS, in scheduled payments led to a liquidity squeeze in the real estate sector since September 2018.
“In FY 2018-19, net disbursals by NBFCs or HFCs to real estate developers declined by almost half from Rs 52,000 crore in FY 2017-18 to an estimated Rs 27,000 crore in FY 2018-19,” it said.
The report, however, said that currently the scenario is not as negative as it was even a few months ago.
It noted that recovery would take time and the new credit discipline would benefit the real estate sector in the medium-to-long term.
“Also, the new government has taken cognizance of struggling NBFCs and introduced a few new schemes,” it said.