India\u2019s 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.<\/p>\n
Capital is increasingly flowing into India\u2019s private credit market. According to EY, US$12.4 billion was deployed in Indian private credit in CY2025<\/strong>, with real estate accounting for 42%, the largest sectoral allocation\u2014highlighting its importance within institutional credit portfolios.<\/p>\n <\/p>\n 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.<\/p>\n For real estate private credit investors, this supports more informed due diligence, superior underwriting, greater visibility into execution and early risk identification.<\/p>\n <\/p>\n 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.<\/p>\n For real estate private credit investors, these measures increase developers\u2019 financial discipline and reduce project delivery risk through control over the use of project funds.<\/p>\n <\/p>\n 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.<\/p>\n For private credit investors, it means a more structured framework for creditor recovery in real estate financing.<\/p>\n <\/p>\nRERA: Greater Transparency and Monitoring<\/strong><\/h4>\n
Stronger Financial Discipline through RERA project escrow accounts<\/strong><\/h4>\n
IBC: A More Structured Recovery Framework<\/strong><\/h4>\n
Structural Reforms and Resilient Market Demand<\/strong><\/h4>\n