India now has 500K Unfinished apartments that are in financial limbo as many builders have collapsed. Most of these are in Delhi, Mumbai and Bangalore.
Now there are Rs 5.2 Trillion worth of borrowing on property projects up from Rs 1.3 Trillion in 2010. This equates to $73B worth of loans. Sophisticated investors like Brookfield, KKR, Apollo and Blackstone would likely benefit over next few years as these loans are unwinded. Brookfield has been lending money to builders over last 3 years at 10% interest rates and looks like their plan has to been to position themselves for bankruptcy and takeover of some of the projects if they failed.
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