India has emerged as the second-largest real estate private credit market in the Asia-Pacific region, capturing 36% of total fundraising between 2020 and 2024, according to a new Knight Frank report. The country&rsquo;s private credit assets under management have surged from $0.7 billion in 2010 to $17.8 billion in 2023, marking one of the strongest growth trajectories in the region.
The report attributes this acceleration to a decisive shift in developer financing, as tighter bank lending norms push builders toward private credit and alternative funding channels. Global private equity funds, institutional investors and family offices have stepped in aggressively, encouraged by higher returns and stronger regulatory clarity in India&rsquo;s property ecosystem.
Knight Frank expects India to contribute 20&ndash;25% of the region&rsquo;s projected $90&ndash;110 billion private credit expansion by 2028. &ldquo;India&rsquo;s emergence as a leading private credit market reflects strong economic fundamentals and deepening institutional involvement,&rdquo; said Shishir Baijal, Knight Frank India CMD, adding that structured financing is increasingly bridging critical funding gaps amid rising housing demand.
The report also highlights a diversification beyond traditional development loans with last-mile funding, structured debt, and special-situation financing now playing a crucial role in reviving stalled projects and enhancing liquidity. Analysts say this widening credit landscape is strengthening market stability and drawing a broader class of global investors to Indian real estate.

India Secures No.2 Spot in APAC Private Credit

India captures 36% of APAC real estate private credit as assets soar to $17.8B: Report

India Secures No.2 Spot in APAC Private Credit

India captures 36% of APAC real estate private credit as assets soar to $17.8B: Report

November 24, 2025 | 18:30 IST