India has emerged as the fastest-advancing real estate private credit market in the Asia-Pacific region, supported by structural reforms, deeper institutional participation and rising demand for flexible financing solutions. According to Knight Frank, India is projected to contribute 20–25% of the region’s expected ₹8,02,530–₹9,80,870 crore (US$ 90–110 billion) growth in private credit by 2028.
Surge in Private Credit AUM
Private credit assets under management in India have risen sharply—from ₹6,242 crore (US$ 700 million) in 2010 to ₹1,58,722 crore (US$ 17.8 billion) in 2023—reflecting increasing investor interest and a strengthening alternative lending ecosystem. Developers are increasingly using structured financing to bridge capital gaps, fund last-mile construction and support growing demand in urban housing markets.
Regional Contribution and Growth Drivers
Between 2020 and 2024, India accounted for 36% of the ₹99,870 crore (US$ 11.2 billion) private credit raised across the Asia-Pacific region, ranking second only to Australia. Higher global interest rates and investor preference for yield-backed, collateralised opportunities have further boosted activity.
Expanding Use Cases
The asset class is diversifying beyond conventional development financing to include refinancing, special situation capital, and new-economy sectors such as data centres, logistics and build-to-rent platforms. Improved governance standards and expanding institutional capital participation continue to strengthen India’s position within the regional private credit landscape.
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