Private credit has rapidly become one of the most influential forces reshaping the financing ecosystem of Indian real estate, according to a recent Knight Frank report. The study highlights that the share of private credit in real estate funding has grown significantly in the past decade, providing strong momentum, particularly to the residential segment. India’s private credit assets under management have increased from approximately 0.7 billion dollars in 2010 to 17.8 billion dollars by 2023, reflecting the expanding role of structured, non-banking capital in supporting real estate growth.
The report states that private credit now accounts for a major share of capital flowing into residential development and refinancing transactions across India and is gradually replacing traditional bank lending as the preferred funding source for new-age real estate businesses. The availability of structured lending and investor-led credit solutions has strengthened the financial discipline of developers and opened opportunities for faster scale expansion, project restarts, and improved execution capability. As private capital becomes more active, the residential market is gaining higher delivery confidence and witnessing improved project completion rates, ultimately benefiting both developers and homebuyers.
Sharing industry insights, Sanjay Sharma, Director, SKA Group, said, “The rise of private credit funding is redefining the pace and confidence of India’s residential real estate sector. For developers, this capital is enabling faster execution and greater delivery certainty, allowing us to move beyond phased construction and hand over homes on committed timelines. Buyers today are investing in projects backed by stronger financial discipline and transparency, ensuring they receive not just promised square feet, but a finished home of quality. This new funding landscape is accelerating supply and strengthening trust, ultimately shaping a more resilient residential market.”
Saurab Saharan, Group Managing Director, HCBS Developments, added, “The latest findings confirming that private credit has become the leading engine powering India’s real-estate resurgence underscore what we have long believed: flexible, structured financing is no longer optional — it is essential. With returns of 12–21% IRR reported, backed by both global and domestic capital, private credit isn’t just bridging funding gaps; it’s unlocking growth potential, enabling faster land acquisition, construction, and timely project completions across multiple asset classes. For developers committed to delivering quality and timelines, this is a game-changer. As the sector enters a new cycle of growth, this will play an increasingly central role in driving innovation and unlocking stalled assets.”
The growing acceptance of private credit is expected to change how residential development is funded and delivered in India. With traditional bank lending often limited to longer gestation projects, private credit offers agility and structured solutions for developers and provides buyers with confidence linked to timely possession and transparent operations. The Knight Frank report signals a fundamental shift in the industry and positions private credit as a long-term catalyst for growth within India’s real estate sector.
.png)