Archive · 20 Aug 2026
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.
India's private credit investments reached US$3.5 billion across more than 100 transactions above US$10 million in H1 2026.
Real estate accounted for 35% of total private credit deal value, the largest sector share.
EY's June 2026 survey identified real estate as having the highest perceived default risk among sectors.
Mid-sized deals worth US$10 million to US$60 million rose to 61% of deal value, from 51% in H2 2025.
Nearly 73% of investors expect strong private credit activity over the next one to two years.
- Who
- Private credit investors, domestic funds, and borrowers across India's real estate and other sectors.
- What
- India's private credit market deployed US$3.5 billion in H1 2026, with real estate receiving the largest share despite having the highest perceived default risk.
- When
- The data covers H1 2026, and the risk findings come from an EY survey conducted in June 2026.
- Where
- India.
- Why
- Activity was supported by refinancing, holding company funding, acquisition financing, stress-related situations, capital expenditure, and M&A financing needs.
- 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.