Private credit, where non-bank lenders provide financing to institutional and private clients, has emerged as one of the fastest-growing segments in the capital markets in the Asia-Pacific (APAC) region, albeit from a low base. In the real estate sector, its rising prominence is reshaping the funding landscape, providing borrowers with a credible and competitive alternative to traditional bank financing.

This shift in capital flows has coincided with a broader resurgence of investor appetite for real estate as an asset class globally. Real estate debt fund-raising has accelerated in recent times. In the first half of 2025, private credit fundraising directed towards the real estate sector reached 19%, its highest share in the past five years, which reflects both investor confidence and the growing role of private credit in meeting financing needs.