Mumbai: India’s real estate sector is projected to require nearly ₹50 lakh crore in capital over the next decade as it moves toward becoming a USD 1 trillion market by 2030 and potentially a USD 5-7 trillion market by 2047, according to the latest report released by ANAROCK Capital.
The report, titled ‘Powering the Next Decade: India’s Real Estate Finance Transformation Story’, highlights how India’s property financing ecosystem is evolving into a more institutionalized, transparent, and diversified market.
Released in Mumbai on 21 May 2026, the ANAROCK Capital report outlines the rapid transformation of Indian real estate finance from a fragmented NBFC-driven structure into a system powered by banks, Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), private credit, and government-backed initiatives.
According to the ANAROCK Capital report, the Indian real estate sector’s growth trajectory is being supported by strong domestic demand, infrastructure investments, and ongoing regulatory reforms.
However, the report cautions that despite improved liquidity and institutional participation, capital allocation remains heavily concentrated among top developers and leading metropolitan markets.
Also Read: Listed Developers Capture 49% Share of India’s Land Deals in FY 2026: ANAROCK
Affordable Housing Faces Largest Funding Gap
The ANAROCK Capital report noted that affordable housing remains severely underfunded despite continued demand across urban India. The report estimates that India will require nearly 25 million additional affordable housing units by 2030.
Shobhit Agarwal, CEO of ANAROCK Capital, said: “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.”
The report further highlighted that more than 4.5 lakh stalled affordable and mid-income homes across over 1,500 projects currently require approximately ₹55,000 crore in funding support.
Vishal Srivastava, Head – Corporate Finance and Managing Director at ANAROCK Capital, said: “Despite strong demand, affordable housing remains underfunded and requires dedicated capital structures. There is an urban housing shortage of roughly 10 million units, and at least 25 million affordable homes are needed by 2030.
Yet affordable housing supply has sharply declined – homes priced below ₹40 lakh accounted for just 10% of new launches in Q1 2026, down from 26% in 2021. At the same time, premium housing has surged, with homes priced above ₹1.5 crore making up 53% of new launches.”
The ANAROCK Capital report added that financing systems are increasingly favoring higher-margin projects, while affordable housing continues to remain outside the focus area of formal institutional capital.
Srivastava further said: “India’s affordable housing problem is no longer a demand issue, but a structural capital allocation and financing architecture challenge.
The report emphasizes that India’s next phase of real estate growth will depend not on raising more capital, but on broadening access to capital.”
SWAMIH Fund 2.0 to Support Additional Housing Completion
The ANAROCK Capital report also examined the role of government-backed funding support in reviving stalled housing projects.
According to Vishal Srivastava: “The government-backed SWAMIH Fund, launched in 2019 with an initial corpus that expanded to ₹15,530 crore, has already enabled completion of 58,596 homes, with over 1 lakh units expected in total.
In Budget 2025–26, SWAMIH Fund 2.0 added another ₹15,000 Cr blended-finance vehicle targeting completion of an additional 1 lakh stalled units.”
The report added that PMAY-Urban 2.0 aims to support one crore additional urban homes, while Affordable Housing Finance Companies are expected to grow assets under management by 20-21% during FY26-27.
Real Estate Finance Ecosystem Undergoing Structural Shift
The ANAROCK Capital report stated that regulatory reforms including RERA, GST, the Insolvency and Bankruptcy Code (IBC), REIT regulations, and tighter RBI norms have significantly altered India’s real estate financing structure.
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Key highlights from the ANAROCK Capital report include:
- ₹38 lakh crore in outstanding individual housing loans as of February 2026
- Over ₹5.2 lakh crore in commercial real estate lending by banks
- Six listed REITs with combined market capitalization exceeding ₹2 lakh crore
- Real estate emerging as the largest sectoral allocation within India’s AIF industry
- Listed REITs in India by Market Capitalization
Companies Total Market Cap (₹ Cr) as of 15 May 2026
- Embassy Office Parks REIT 40,000
- Mindspace Business Parks REIT 30,510
- Brookfield REIT 26,639
- Nexus Select Trust REIT 23,523
- Knowledge Realty Trust REIT 51,439
- Bagmane Prime Office REIT 35,393
- Total 2,07,504
The ANAROCK Capital report also pointed to India’s untapped REIT potential. Currently, only 198 million sq. ft. of the country’s 520 million sq. ft. REIT-worthy office stock is listed under REITs.
The report noted that:
REIT market capitalization equals just 0.4% of India’s stock market capitalization
REITs represent only 20% of listed real estate market value, significantly lower than mature global markets
Office Stock Under REITs
- REIT Office Stock (Mn sq. ft.)
- Embassy Office Parks REIT 53
- Mindspace Business Parks REIT 43
- Brookfield REIT 37
- Knowledge Realty Trust REIT 47
- Bagmane Prime Office REIT 20
- Total 198
CapitaLand India Trust Highlights Offshore Institutional Participation
The ANAROCK Capital report highlighted CapitaLand India Trust (CLINT) as a significant example of offshore institutional participation in Indian real estate.
Listed on the Singapore Exchange in 2007, CLINT became Asia’s first India-focused property trust, predating India’s domestic REIT ecosystem by more than a decade.
Shobhit Agarwal said: “CLINT is strategically positioned across ~15 diverse assets – commercial office, industrial, logistics and data centre, making it one of the earliest institutional platforms to capture India’s shift beyond traditional office real estate.
CLINT demonstrates three structural shifts occurring within India’s RE capital markets – global capital confidence, multi-asset diversification, and a practical example for future capital recycling.”
Data Centres, Logistics and GCC-Led Offices to Drive Future Growth
The ANAROCK Capital report identified data centres, logistics, industrial real estate, and GCC-led office developments as the next major long-term capital destinations.
Key projections from the report include:
- India’s data centre capacity expected to exceed 8 GW by 2030
- Warehousing stock growing beyond 605 million sq. ft.
- GCCs and technology occupiers projected to drive demand for 1.2 billion sq. ft. of office space by 2030
The report said these emerging sectors are attracting long-term, yield-focused, globally benchmarked capital, contributing to the creation of a more resilient financing ecosystem.
India Positioned Strongly Amid Global Headwinds
The ANAROCK Capital report concluded that geopolitical tensions and global market volatility may create short-term uncertainty, but India’s domestic fundamentals continue to remain strong.
The report emphasized that evolving RBI project finance norms, deeper capital markets, and the growing role of private credit are collectively strengthening the real estate lending ecosystem.
Developers with stronger balance sheets, lower leverage, and completed inventory are expected to remain well-positioned to access capital efficiently.
