What is Private Credit in Commercial Real Estate?
Private credit has become a pivotal financing mechanism in India's commercial real estate sector, offering alternative funding solutions to developers and attractive returns to investors. As traditional banking institutions face increasing regulatory constraints, private credit emerges as a flexible and efficient means to finance commercial real estate projects. Understanding Private Credit in Commercial Real Estate Private credit refers to non-bank lending where investors provide debt financing directly to borrowers, secured against physical assets such as office buildings, shopping malls, industrial warehouses, and residential complexes. This form of asset-backed lending bypasses traditional financial intermediaries, allowing for tailored financing solutions that meet the specific needs of real estate developers and investors. Growth of Private Credit in India's Commercial Real Estate The Indian private credit market has witnessed significant expansion, with investments re...