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Critical Review of Residential Development Project Financing in India

Author

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  • Shiv Prasad Singh
  • Amit Kumar
  • Deepak Bajaj

Abstract

Financing of Residential Real Estate Development (RRED) projects has not received due attention in India beyond affordable (social) housing. RRED projects continue to finance themselves through customer advances, which has been disrupted because of recessionary market conditions, supply glut, and the tough stance of the Reserve Bank of India. This has resulted in thousands of stalled RRED projects across the country for which developers cannot raise finance through any source. This paper extensively examines options of RRED project financing, across developed and emerging markets, in principle and practice. An extensive review of traditional and innovative methods of financing for RRED projects has been undertaken, and gaps have been identified in the Indian context. Authors have validated identified gaps through primary research using relative importance index and principal component analysis.

Suggested Citation

  • Shiv Prasad Singh & Amit Kumar & Deepak Bajaj, 2022. "Critical Review of Residential Development Project Financing in India," Journal of Real Estate Literature, Taylor & Francis Journals, vol. 30(1-2), pages 118-149, July.
  • Handle: RePEc:taf:rjelxx:v:30:y:2022:i:1-2:p:118-149
    DOI: 10.1080/09277544.2022.2141341
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