1 month ago
Commercial Realty Lending by NBFCs to Sustain Growth
Lending to commercial real estate in India is growing fast.
Non-banking financial companies (NBFCs) and banks are lending more money to build offices and data centers.
This is because many companies need more office space, and there are new rules that make lending safer.
Big companies like Tata and Godrej are building more offices, and this makes lenders feel good about giving them loans.
The rules also make sure that developers pay back their loans on time.
So, more money is going into building offices and data centers, and this is expected to continue.
NBFC loans to commercial real estate grew 40.2% year-on-year to Rs 1.20 lakh crore as of May 2026.
Bank credit to the sector rose 19% to Rs 6.42 lakh crore in the same period.
Demand for office space is driven by the expansion of global capability centers (GCCs) and data centers.
Lenders prefer organized developers with stronger balance sheets due to RERA regulations.
Office leasing reached a record 83 million square feet in 2025.
- Who
- NBFCs, banks, developers, and real estate consultants
- What
- Increased lending to commercial real estate driven by demand for office space and data centers
- Where
- India
- When
- As of May 2026
- Why
- Due to record office leasing, expansion of GCCs and data centers, and lenders' preference for organized developers with stronger balance sheets
Proponents of NBFC Lending
Cautious Lenders
Market Growth and Demand
Proponents of NBFC Lending
NBFCs see significant opportunities due to strong demand for office space, particularly from GCCs and data centers, and the consolidation of developers with stronger balance sheets.
Cautious Lenders
Lenders remain cautious, focusing on well-capitalized developers and projects with strong cash-flow visibility to mitigate risks.
Key facts
- NBFC Loans Growth
- 40.2% year-on-year to Rs 1.20 lakh crore (May 2026)
- Bank Credit Growth
- 19% to Rs 6.42 lakh crore (May 2026)
- GCCs in India
- Expected to cross 4,000 by 2030
- Office Leasing in 2025
- 83 million square feet
- Interest Rates for Banks
- 8-13%
- Interest Rates for NBFCs
- 12-14%
- Interest Rates for AIFs
- 16-20%
Quotes
Niranjan Hiranandani
Managing Director, Hiranandani Group
“"2025 was a bumper year for office leasing, and fresh pools of assets were completed. There was a significant increase in banks’ loan books as construction finance was converted into LRD loans."”
financialexpress.com
“"All the big groups are in the market today and bank funding is rising."”
financialexpress.com
Promod Kumar Dwivedi
Executive Director, Bank of India
“"Banks are increasing their exposure as large groups such as the Tatas, Godrej and L&T are in the field, and this trend will continue."”
financialexpress.com










