News: India Realty Needs Rs 50 Lakh Crore: Anarock Capital-21-05-2026
India’s real estate sector will need nearly Rs 50 lakh crore in capital over the next decade as it grows into a $1 trillion market by 2030, with potential to reach $5-7 trillion by 2047, according to an Anarock Capital report titled "Powering the Next Decade: India’s Real Estate Finance Transformation Story".
The report says financing is increasingly concentrated on higher-margin projects, top cities and large developers. Affordable housing, which delivers the highest social returns, stays outside the focus of formal capital. The problem, it says, is no longer demand but capital allocation and financing architecture, and the next phase of growth will depend on widening access to capital more than raising fresh funds.
Shobhit Agarwal, CEO, ANAROCK Capital, said the sector no longer faces a shortage of capital. The challenge is whether money can reach beyond top developers and major metros to affordable housing, smaller developers and Tier II and Tier III cities.
Vishal Srivastava, head, corporate finance, managing director, Anarock Capital, said there is an urban housing shortage of roughly 10 million units and at least 25 million affordable homes are needed by 2030. Yet homes priced below Rs 40 lakh made up just 10% of new launches in Q1 2026, down from 26% in 2021, while those above Rs 1.5 crore accounted for 53%. He said the segment needs dedicated capital structures.
The report traces the shift in real estate finance from a fragmented, NBFC-dominated system to a more institutional, regulated and diversified market involving banks, Alternative Investment Funds (AIFs), Real Estate Investment Trusts (REITs), private credit and government-backed initiatives. Reforms such as RERA, GST, the Insolvency and Bankruptcy Code (IBC), REIT regulations and tighter RBI norms have changed how the sector is financed, it notes.
On REITs, it says only 198 mn sf (~37%) of India’s 520 mn sf of REIT-worthy office stock is listed. Data centres, logistics, industrial real estate and GCC-led offices are identified as the next major recipients of long-term capital.
