India’s real estate market has evolved significantly over the past decade. Regulatory reforms, greater transparency and improved resolution mechanisms have strengthened buyer and investor confidence, making the sector increasingly attractive for real estate private credit investments.
Capital is increasingly flowing into India’s private credit market. According to EY, US$12.4 billion was deployed in Indian private credit in CY2025, with real estate accounting for 42%, the largest sectoral allocation—highlighting its importance within institutional credit portfolios.
RERA: Greater Transparency and Monitoring
The introduction of Real Estate (Regulation and Development) Act (RERA) in 2016 marked a turning point for the sector. Mandatory project registration, disclosure of project details and quarterly progress updates improved information availability for buyers and investors.
For real estate private credit investors, this supports more informed due diligence, superior underwriting, greater visibility into execution and early risk identification.
Stronger Financial Discipline through RERA project escrow accounts
RERA requires 70% of buyer collections to be deposited into a separate account to meet project construction costs, with withdrawals linked to certified project completion. This helps restrict the diversion of project funds.
For real estate private credit investors, these measures increase developers’ financial discipline and reduce project delivery risk through control over the use of project funds.
IBC: A More Structured Recovery Framework
The Insolvency and Bankruptcy Code (IBC), introduced in 2016, established a time-bound, creditor led framework for resolving corporate insolvency. It gives creditors a formal mechanism to pursue resolution when borrowers default.
For private credit investors, it means a more structured framework for creditor recovery in real estate financing.
Structural Reforms and Resilient Market Demand
Demonetization, RERA and Goods and Services Tax (GST) have accelerated formalisation of the sector. While these transitions created short-term disruptions, they encouraged greater compliance and improved transparency, contributing to consolidation towards stronger, more compliant developers and a more institutional operating environment.
The Road Ahead
A decade of reforms has helped create a more transparent, accountable and institutionally investable real estate market. While regulatory improvements do not eliminate credit risk, these improvements support better assessment and management of credit risk, significantly enhancing the risk-return equation for investors.
The Restack provides access to curated real estate private credit opportunities combining contractual income, real estate security and defined tenors, supported by disciplined underwriting and monitoring.
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