Real Estate Sector: Staring down a US$100Bn capital gap

Retreating shadow lenders have left a capital vacuum for RE projects, at a time when physical markets are bottoming out. We analyse the turn of events leading to this and the current situation and opportunity.

For a large part of the real estate sector, the pendulum has swung from one extreme to the other – from easy and abundant liquidity to practically no capital.

No other source of capital can plug the massive needs of the sector. Domestic institutions, however, remain fearful and are unlikely to come back in a hurry. 

In the meanwhile, it is yet not clear who will step in to fill the massive gap left by these retreating incumbents.