Mumbai, Nov 24 (IANS) India has emerged as one of the most active and fastest-growing real estate private credit markets in the Asia-Pacific region, securing the second position and accounting for 36 per cent of regional fundraising between 2020 and 2024, a new report said on Monday.

The data compiled by Knight Frank notes that India’s private credit assets under management have seen sharp growth, rising from $0.7 billion in 2010 to $17.8 billion in 2023.

Knight Frank expects India to contribute between 20 and 25 per cent of the region’s projected $90–110 billion private credit expansion by 2028, driven by stronger investor appetite, policy reforms, and increased developer demand for non-bank financing.

This rapid expansion is being supported by structural shifts in the financing ecosystem, according to the report.

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 favourable returns and rising confidence in India’s real estate ecosystem.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, said India’s strong economic position and regulatory evolution have helped private credit gain momentum.

He added that developers are now depending more on structured financing to bridge funding gaps amid rising housing demand.

“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,” Baijal added.

According to him, 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 highlights 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, Knight Frank said, is strengthening the stability of the market and bringing in a wider pool of investors.

–IANS

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