Indian real estate worth Rs7,700 cr up for sale by lenders: study

India's dismal economic figures have expectedly hit the realty sector hard - an estimated Rs7,700 crore worth of commercial and residential properties across the country are up for sale by lenders, according to an industry study.

Data compiled by NPAsource.Com, a portal that focuses on the resolution of stressed assets, show that there are around 2,200 units in the commercial and nearly 11,000 units in the residential category funded by banks and other financial institutions which have turned into non-performing assets (NPAs) or bad loans and have been put on the block, with a total value of over Rs7,700 crore.

The portal has NPA data of properties worth around Rs27,500 crore spread across 27,626 units. Of this, commercial NPA properties have a 15 per cent share in value terms, while residential properties constitute 13 per cent.

The biggest share of bad assets come from the industrial land and building category, constituting over 65 per cent in value terms, the portal said.

NPAsource chairman D K Jain said Maharashtra, which largely means Mumbai, tops both the commercial and residential categories, with Rs842 crore and Rs838 crore worth of NPAs respectively. Delhi follows with Rs686 crore worth of commercial NPAs and Rs500 crore worth of residential NPAs.

Andhra Pradesh is at number three in residential properties with Rs497 crore worth of NPAs up for sale. Tamil Nadu, Bengal and Uttar Pradesh are the next three states with highest value of commercial and residential NPA properties, according to Jain.

Though Mumbai leads in realty NPAs, Delhi leads on the single-NPA front, with a New Delhi office property valued at Rs200 crore at the base price turning bad; followed by a farmhouse in the capital with a base value of Rs40 crore.

Against this, the priciest two Mumbai properties have a base price of Rs26.5 crore and Rs24.6 crore respectively.

"As NPAs in the corporate sector continue to grow, there will be more commercial and residential properties coming up for auction. The slowdown in realty markets has further added to the woes of the lenders who will not be able to generate higher returns by selling these mortgaged properties," said Jain.