India Soars to Second Place in APAC Real Estate Private Credit Market
Mumbai: India has become one of the most active and fastest-growing real estate private credit markets in the Asia-Pacific region. According to a new report by Knight Frank, India has secured the second position and accounted for 36% of regional fundraising between 2020 and 2024.
The data compiled by Knight Frank indicates that India’s private credit assets under management have seen significant growth, rising from $0.7 billion in 2010 to $17.8 billion in 2023. Knight Frank anticipates that India will contribute between 20% and 25% of the region’s projected $90–110 billion private credit expansion by 2028. This growth is driven by stronger investor appetite, policy reforms, and increased developer demand for non-bank financing.
The rapid expansion of India’s real estate private credit market is supported by structural shifts in the financing ecosystem. Developers are increasingly turning to private credit and alternative lenders as traditional bank lending becomes tighter and regulatory frameworks evolve. Global private equity firms, family offices, and institutional investors have been quick to deploy capital, attracted by favorable returns and rising confidence in India’s real estate ecosystem.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted that India’s strong economic position and regulatory evolution have helped private credit gain momentum. ‘Developers are now depending more on structured financing to bridge funding gaps amid rising housing demand,’ Baijal added. ‘India’s emergence as a leading private credit market within Asia-Pacific reflects the country’s strong economic fundamentals, regulatory evolution, and deepening institutional participation.’
According to Baijal, the combination of governance improvements and growth potential makes India a compelling destination for global capital, especially at a time when interest rates remain high in many markets. The report also emphasizes that India’s private credit market is expanding beyond traditional development lending. Structured debt, last-mile project funding, and special situation financing are now playing a crucial role in completing stalled projects and improving liquidity across the sector.
This diversification, as noted by Knight Frank, is strengthening the stability of the market and bringing in a wider pool of investors. The increasing participation of global investors and the diversification of financing options are expected to further bolster India’s position as a leading player in the real estate private credit market.
