India emerges as Asia-Pacific’s fastest advancing real estate private credit market
- IBEF
- November 25, 2025
India has emerged as the fastest-advancing real estate private credit market in the Asia-Pacific region, driven by structural reforms, institutional participation, and rising demand for flexible financing. According to Knight Frank, India is expected to account for 20-25% of the region’s projected Rs. 8,02,530 - 9,80,870 crore (US$ 90-110 billion) growth in private credit by 2028. Private credit assets under management in India surged to Rs. 1,58,722 crore (US$ 17.80 billion) in 2023 from Rs. 6,242 crore (US$ 700 million) in 2010, reflecting strong investor appetite and a maturing alternative lending ecosystem. Developers are increasingly opting for structured and alternative financing to address capital gaps, support last-mile projects, and cater to the growing urban housing demand.
The sector’s expansion is also supported by higher global interest rates and investors’ growing preference for yield-backed, collateralised opportunities. India contributed 36% of the Rs. 99,870 crore (US$ 11.20 billion) raised in private credit across Asia-Pacific between 2020 and 2024, second only to Australia. The asset class is broadening beyond traditional development funding to include refinancing, special situation capital, and new-economy assets such as data centres, logistics, and build-to-rent platforms. With governance frameworks improving and institutional capital deepening, India is well-positioned to anchor the next phase of private credit-led real estate financing in the region.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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