India Emerges as APAC's No. 2 Real Estate Private Credit Hub

India has become one of the most vibrant and fastest-growing private credit markets for real estate in Asia-Pacific, ranking second and representing 36 per cent of regional fundraising from 2020 to 2024, a new report showed on Monday.

Knight Frank’s data demonstrates that private credit assets under management in India have grown rapidly— from $0.7 billion in 2010 to $17.8 billion in 2023.

Knight Frank anticipates India to contribute about 20-25 per cent of the region's projected $90-110 billion private credit growth by 2028, backed by stronger appetite from investors, policy reform, and increased demand from developers for non-bank financing.

The acceleration in volumes is being supported by structural changes in the financing ecosystem, according to the report. 

With traditional bank lending becoming more difficult and regulatory frameworks evolving, developers are increasingly turning to private credit and alternative, non-bank lenders. 

Global private equity firms, family offices, or institutional investors have been quick to allocate capital attracted by strong returns and improved confidence in India's real estate ecosystem.

Also Read: Hilton Reveals Top New Properties to Watch Worldwide in 2026

As he pointed out, the improving governance and growth potential make it a unique place for global capital allocation, particularly given that interest rates remain at elevated levels across many other markets. The private credit market in India is also expanding beyond purely development capital.

Structured debt, last-mile project financing, and special situation financing are starting to play an increasingly critical role in revitalizing stalled projects and enhancing liquidity across the sector. Knight Frank stated the diversification will enhance market stability and broaden the investor base.

Shishir Baijal, Chairman and Managing Director of Knight Frank India say, “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”.

"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," he added.

Also Read: Premium Homes and Policy Support Boost Buyer Confidence

Lalit Parihar, Managing Director, Aaiji Group says,

“India’s ascent as one of the most dynamic real estate private credit markets in Asia-Pacific reflects the deepening maturity and resilience of the sector. The rapid growth in private credit AUM—from under a billion dollars a decade ago to nearly USD 18 billion today—demonstrates strong investor confidence and the success of regulatory reforms that have enhanced transparency and broadened financing avenues. As India is poised to contribute up to a quarter of the region’s private credit growth by 2028, we see tremendous opportunity for well-capitalized, forward-thinking developers. At our company, we believe this evolving credit landscape will enable us to accelerate high-quality development, strengthen partnerships with institutional investors, and continue delivering long-term value to our stakeholders”.