Private Credit: The Key to Unlocking India's $1 Trillion Real Estate Ambition
India’s real estate sector is on the brink of a massive transformation, and private credit is emerging as a defining catalyst in that journey. According to Siddharth Chowdhary, Managing Director at Dalcore, the country’s $1 trillion real estate ambition will require flexible, long-term funding beyond traditional banking channels.
Speaking to Kshitij Anand, Siddharth highlighted that institutional investors and private credit providers are increasingly stepping in to bridge critical financing gaps, accelerate project execution, and support large-scale urban development—ultimately strengthening the sector’s growth, transparency, and resilience.
What is Fueling the Rise in Institutional Investments in Real Estate?
Institutional investors are increasing their allocation to real estate because it offers long-term stability, diversification, and predictable cash flows. Tangible assets act as a hedge against inflation and market volatility. India’s strong urbanisation and evolving residential demand are further accelerating institutional interest.
What Innovations Are You Seeing in Real Estate Fund Structures to Attract Long-Term Institutional Capital?
We’re seeing wider adoption of evergreen and semi-liquid structures that balance liquidity with long-term commitment. Fund managers are also creating customised products for HNIs and integrating AI and blockchain for operational transparency and efficiency. Open-end and interval funds have expanded access and flexibility for institutional investors.
Why is Real Estate a Preferred Avenue for Structured and Opportunity-Led Investments Today?
Real estate combines steady rental income with high appreciation potential, driven by India’s economic growth and urbanisation. With multiple asset classes—residential, commercial, and logistics—it offers structured risk–return options aligned with varied investor strategies.
What Role Will Private Credit and Institutional Capital Play in India Reaching the $1 Trillion Real Estate Mark?
Private credit and institutional capital will bridge critical funding gaps left by traditional banking structures. Their flexible debt and equity deployment will accelerate project completions, enable large-scale developments, and strengthen infrastructure, all crucial for the $1 trillion ambition.
What Opportunities and Risks Should Investors Consider When Indian Real Estate Becomes More Institutionalised?
Opportunities lie in rapid urbanisation, improving regulations, and diversified asset classes with stable returns. Key risks include market cyclicality, policy changes, and execution challenges. Due diligence on location, asset fundamentals, and developer track record remains essential to mitigate these risks.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
