Bricks & Billions: Mapping the Financing Landscape of India’s Real Estate Sector

Presenting Bricks & Billions: Mapping the Financing Landscape of India’s Real Estate Sector, a comprehensive report aiming to dissect the financing dynamics within the country’s real estate segment. While underscoring the synergistic relationship between real estate development and the financial sector, this report examines how financial entities, including banks, NBFCs, PE funds, development platforms, and AIFs, can strategically integrate real estate into their portfolios for sustained growth.

Key takeaways of the report:

• India’s real estate sector received significant equity investment inflows of ~USD 26.4 billion post-pandemic; developers and institutional investors remain key to capital mobilisation

• Land worth ~USD 11.6 billion acquired for greenfield developments from 2022-2024 across the country

• Banks increase funding allocation to CRE; NBFCs seen recouping credit flow on the back of RBI’s regulatory strengthening measures

• AIFs emerge as key stakeholders in bridging developers’ liquidity gap, with the real estate sector accounting for ~15% of the total allocation

• In 2024, the real estate sector raised ~INR 23,703 crore through QIPs, IPOs, and SM REITs

India’s real estate and construction sector, a critical driver of the country's economic growth, is experiencing a significant structural shift, driven by accelerated corporatisation, heightened transparency, and robust market fundamentals. The real estate financing landscape continues to be dynamic, attracting interest from both foreign and domestic investors. The demonstrated long-term confidence of investors highlights a strong conviction in the sector's growth potential, defined by evolving investment strategies, the emergence of new asset classes, and diverse opportunities across India's cities.

Post the COVID-19 pandemic, the real estate sector received investment inflows of ~USD 26.7 billion between 2022 and 2024. In fact, strategic land acquisition has emerged as a critical imperative for real estate developers, with the residential sector securing the predominant share of the acquired land parcels—about 7,095 acres of land has been acquired for greenfield developments between 2022=2024, totalling USD 11.6 billion. Concurrently, real estate firms have increasingly turned to the public markets to raise capital through various channels, including QIPs, IPOs, REITs, and SM REITs.

The real estate sector has also emerged as a critical arena for debt financing, offering a fertile landscape for lenders, investors, and borrowers to capitalise on its sustained growth trajectory through a diversified suite of financial instruments, ranging from traditional debt solutions to sophisticated structured products. A notable post-pandemic trend has been the banking sector's role, which has secured a significant share of real estate debt sanctions. Meanwhile, the RBI’s implementation of a comprehensive regulatory enhancement programme has facilitated a heightened focus on NBFCs’ liquidity management, evidenced by an 8.3% Y-o-Y increase in credit deployment by these financial companies towards commercial real estate in FY2024.

The expansion and corporatisation of the real estate market means there is also a need for newer sources of finance, creating unique avenues for all stakeholders. Consequently, AIFs have emerged as one of the key sources of capital for real estate projects, reflecting the evolving dynamics of the sector.

The report, unveiled at the CBRE-CII BFSI Summit in Mumbai in April 2025, delves into a range of pertinent themes to foster collaboration, explore emerging trends, and identify new opportunities at the intersection of real estate and finance.

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