The real estate capital market is currently valued at Rs 50 lakh crore
Chennai: India’s real estate sector will require nearly Rs 50 lakh crore of capital over the next 10 years. This will support its growth into a $1 trillion market by 2030.
The real estate capital market is currently valued at Rs 50 lakh crore. Out of this, Rs 38 lakh crore is the housing loan market and the balance Rs 12 lakh crore from commercial real estate loans to developers, finds Anarock Capital.
India’s real estate capital market has evolved from a fragmented, NBFC-dominated ecosystem into a more institutional, transparent, regulated, and diversified capital market. The transformation is driven by banks, Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), private credit, and government-backed initiatives.
On the financing side, the RBI’s evolving project finance framework, deepening capital markets, and the growing role of private credit are collectively strengthening the lending ecosystem. Developers with strong balance sheets, low leverage, and completed inventory are well placed to weather the volatility and well-positioned to access capital on favourable terms.
“India’s real estate sector no longer faces a shortage of capital. The real challenge is whether this capital can reach beyond the top developers and major metros to fund affordable housing, smaller developers, and emerging Tier II & Tier III cities,” said Shobhit Agarwal, CEO, Anarock Capital.
Despite increasing institutional participation, capital remains concentrated with established developers in the top metropolitan markets. This leaves a critical gap in affordable housing, where India is estimated to require 25 million additional units by 2030.
The next phase will not be won by adding more vehicles for the same set of borrowers. It will be won by extending the financing stack — to the affordable segment, to the smaller developer, to the cities outside the top five.