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India's real estate private credit market has entered a decisive growth phase, with its assets under management rising from less than USD 1 billion a decade ago to nearly USD 18 billion in the past week. Improved regulatory clarity, diversified funding channels, and greater institutional participation have strengthened the sector's foundations. According to Aaiji Group Managing Director Lalit Parihar, India is expected to contribute close to a quarter of the Asia-Pacific region's private credit expansion by 2028. This evolving credit landscape is seen as instrumental in enabling developers to scale responsibly while enhancing long-term value creation.
India's emergence as one of the fastest-advancing real estate private credit markets in the Asia-Pacific region continues to underline the sector's growing depth and resilience. The country has witnessed a notable rise in private credit assets under management, which have expanded from below USD 1 billion nearly ten years ago to almost USD 18 billion in the past week. This progression reflects the cumulative impact of regulatory reforms that have increased transparency, encouraged institutional participation, and opened more diverse avenues of funding for developers. Advertisement
Industry observers have noted that India's private credit ecosystem has evolved considerably since global investors first began exploring alternative lending strategies in the aftermath of the NBFC liquidity crisis. Over the past few years, structured debt, last-mile funding, and platform-level financing have collectively supported developers who needed dependable capital in an environment where traditional bank lending remained selective. The shift has aligned India more closely with mature Asia-Pacific markets, where private credit has long contributed to real-estate capital stack stability.
In this context, Knight Frank's Horizon Report: The Rise of Real Estate Credit in Asia-Pacific - Bridging the Gap has highlighted the scale of India's contribution to regional private credit momentum. The report has indicated that by 2028, the country could account for nearly one-fourth of the region's total growth in real estate private credit, driven by expanding investor appetite and a healthy pipeline of development activity.
Commenting on this trend, Lalit Parihar, Managing Director of Aaiji Group-a Dholera-based real estate company-said that India's rise mirrors mounting investor confidence and signals a sector steadily entering a more mature phase. He observed that the evolving credit ecosystem would give well-funded and future-focused developers the room to accelerate high-quality projects, foster deeper engagement with institutional capital, and continue strengthening long-term value for stakeholders. His view aligns with the broader industry sentiment that India's real-estate markets are transitioning from a reliance on conventional lending to a more balanced credit environment that supports sustained growth.
India's strengthening real estate private credit landscape is reshaping how developers secure capital and execute large-scale projects. By opening opportunities for faster project mobilisation and structured partnerships, the shift is expected to create a more stable investment environment over the coming years. As institutional investors increasingly recognise India's consistency and regulatory clarity, developers positioned with strong balance sheets stand to gain the most.
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