1 week ago

India Private Credit Deployment Leads in Real Estate Despite Risk

Private credit means companies borrow money from investment funds instead of regular banks.

In India, this market handled US$3.5 billion in deals during the first half of 2026.

Real estate received the biggest share of that money, at 35%.

However, investors also said real estate had the highest chance of borrowers failing to repay.

This means the sector is attracting a lot of money but is viewed as risky.

More deals were medium-sized, while very large deals became less common.

Indian funds provided most of the money and deals.

Most investors still believe private credit activity will remain strong in the coming years.

Key facts

Total investment: US$3.5 billion in H1 2026, compared with US$3.4 billion in H2 2025.
Real estate share: 35% of total private credit deal value.
Highest perceived risk: Investors identified real estate as the sector with the highest perceived default risk.
Mid-sized deals: US$10 million to US$60 million transactions represented 61% of deal value, up from 51%.
Largest deals: Transactions above US$120 million represented 18% of deal value, down from 27%.
Domestic funds: Domestic funds accounted for 74% of deal value and approximately 79% of deal volume.
Investor outlook: Nearly 73% of respondents expected strong activity over the next one to two years.

businesstoday.in · 1 week ago