ARCs to Gain 500-700 bps in Residential Realty Recoveries

14 Jun 2024 CW Team

Asset reconstruction companies (ARCs) are expected to see a significant increase in recovery rates from stressed residential real estate projects, according to CRISIL Ratings. Recoveries could rise by 500-700 basis points, from 11% in March 2024 to 16-18% by March 2025. This improvement is driven by healthy demand, price appreciation in residential real estate, and increased investor interest.

Recent amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations are also expected to facilitate better resolution of stressed real estate assets. CRISIL's analysis of its security receipts portfolio, which includes 70 stressed projects covering 66 million square feet with Rs 9,000 crore in outstanding receipts, supports this outlook.

The residential real estate sector in the top six cities is projected to grow by 10-12% this financial year, fueled by strong economic growth and robust housing demand. Lower unsold inventories in major markets will help ARCs expedite the turnaround of distressed projects with support from promoters or external investors.

About three-fourths of the analysed projects became non-performing assets (NPAs) between 2019 and 2022 due to declining sales and slower collections during the COVID-19 pandemic. The rest are pre-2019 NPAs affected by weak demand and liquidity issues. Enhanced market conditions now make these projects viable for last-mile funding, improving recovery prospects for ARCs.

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..