India Leads Asia-Pacific In Private Credit Growth For Real Estate
Real Estate

India Leads Asia-Pacific In Private Credit Growth For Real Estate

India has emerged as the fastest-growing real estate private credit market in the Asia-Pacific region, fuelled by structural reforms, rising institutional participation and increasing demand for flexible financing. Knight Frank estimates that India will account for 20–25 per cent of the region’s projected private-credit expansion of Rs 8.03 trillion to Rs 9.81 trillion (USD 90–110 billion) by 2028.

Private credit assets under management in India surged to Rs 1.587 trillion (USD 17.8 billion) in 2023, up from Rs 62.42 billion (USD 700 million) in 2010 — reflecting strong investor appetite and a maturing alternative-lending ecosystem. Developers are increasingly turning to structured and alternative financing to bridge capital gaps, support last-mile project completion and meet escalating urban housing demand.

The sector’s rise is further supported by higher global interest rates and investor preference for collateral-backed, yield-generating opportunities. India accounted for 36 per cent of the Rs 998.7 billion (USD 11.2 billion) raised in private credit across Asia-Pacific between 2020 and 2024, second only to Australia.

The asset class is expanding beyond traditional development funding into refinancing, special-situation capital and new-economy assets such as data centres, logistics and build-to-rent platforms. With governance frameworks strengthening and institutional capital deepening, India is well positioned to anchor the next wave of private-credit-led real estate financing across the region.

India has emerged as the fastest-growing real estate private credit market in the Asia-Pacific region, fuelled by structural reforms, rising institutional participation and increasing demand for flexible financing. Knight Frank estimates that India will account for 20–25 per cent of the region’s projected private-credit expansion of Rs 8.03 trillion to Rs 9.81 trillion (USD 90–110 billion) by 2028. Private credit assets under management in India surged to Rs 1.587 trillion (USD 17.8 billion) in 2023, up from Rs 62.42 billion (USD 700 million) in 2010 — reflecting strong investor appetite and a maturing alternative-lending ecosystem. Developers are increasingly turning to structured and alternative financing to bridge capital gaps, support last-mile project completion and meet escalating urban housing demand. The sector’s rise is further supported by higher global interest rates and investor preference for collateral-backed, yield-generating opportunities. India accounted for 36 per cent of the Rs 998.7 billion (USD 11.2 billion) raised in private credit across Asia-Pacific between 2020 and 2024, second only to Australia. The asset class is expanding beyond traditional development funding into refinancing, special-situation capital and new-economy assets such as data centres, logistics and build-to-rent platforms. With governance frameworks strengthening and institutional capital deepening, India is well positioned to anchor the next wave of private-credit-led real estate financing across the region.

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