new delhi despite backtoback repo rate hikes in 2022 the average cost of debt for the top eight listed realty players is at its lowest since the pandemic an analysis of the top listed players by property consultancy firm anarock reveals that with the rise in sales revenue their average cost of debt has reduced from 964 in q4 fy20 to approximataley 814 in q2 fy23the eight listed players considered for this analysis include sobha puravankara ltd prestige estates brigade enterprises ltd mahindra lifespace developers ltd godrej properties ltd dlf limited and lodha developers macrotechthe net debt of these developers is down to rs 208 billion by the end q2 fy23 lower than the prepandemic levels from rs 245 billion by the fourth quarter of fy20 the net debt had risen to rs 429 billion by the end of q3 fy21avg cost of debt and net debt is at the end of the quarter avg cost of debt and net debt data is for the top eight listed playerssource company financials compiled by anarock researchwhile funds availability is a challenge for many smaller real estate developers the larger players are able to raise funds at competitive rates depending on their track record market acceptance brand trust and demonstrated financial discipline said anarock in a reportrera implementation and the ilfs fiasco had coupled with the economic downturn to create a funding crunch in the real estate sector from 201619 investors were uncertain about the future of the indian real estate sector and became extremely prudent while evaluating investment optionsthe slew of measures by the rbi and government to increase liquidity during the pandemic helped developers to tide over the difficult times sayid anuj puri chairman anarock group these included a reduction in repo rate loan restructuring stamp duty cuts and a relief package to boost the economy housing sales gathered momentum on the back of record low home loan rates and stamp duty reductions in some statesthis momentum majorly targeted projects by the top listed players who sold 37 million sq ft in fy20 41 mn sq ft in fy21 and 57 mn sq ft in fy22 not surprisingly this ensured that these players could access funds at cheaper rates significantly improving their liquidity and capital structurethe sales share of listed companies rose from 16 in fy20 to 23 in fy21 which helped in reducing their debt the net debt of the top eight listed realty players stood at rs 245 billion as of q4 fy20 increased significantly to rs 429 billion at the end of q3 fy21 due to the pandemic and then reduced gradually to rs 208 billion in q2 fy23 which is lower than it was before the pandemicthe average cost of debt also reduced for the listed players as they could negotiate their terms due to their limited funding requirements the average cost of debt increased slightly during q4 fy21 as net debt peaked in q3 fy21 and the requirement of funds briefly roseavg