Despite interest rate hikes, listed realty firms see dip in cost of debt

Debt cost of eight listed players at lowest since pandemic

Even after back-to-back repo rate hikes in 2022, the average cost of debt for the eight listed realty players fell to the lowest since the start of the pandemic. Their average cost of debt has reduced from 9.64 per cent in the fourth quarter of the financial year ended March 31, 2020 (Q4 FY20) to around 8.14 per cent in Q2 FY23 when the sales revenues were rising.

The average cost of debt increased slightly during Q4 FY21 as net debt peaked in Q3 FY21, and the requirement of funds briefly rose, according to Anarock Research.

Fund availability has been