India Real Estate Funding Puts RERA Under Focus

India’s property market is entering a capital-intensive phase, with the sector estimated to need around ₹50 lakh crore over the next decade as it moves towards a projected $1 trillion market by 2030. The scale of this requirement raises a wider urban question: whether future investment will support diverse housing needs and infrastructure, or remain concentrated in high-value projects and major cities.

Brickwork Ratings expects the sector’s credit conditions to remain stable through FY27, despite a sharp slowdown in revenue growth. Revenue growth is projected at -0.2% in FY26, compared with 15.8% in FY25, before improving to 5.5% in FY27. Operating margins, meanwhile, are expected to rise from 30.1% to 32% in FY26. Much of the sector’s resilience is being supported by stronger demand for premium housing, institutional investment and commercial assets. Yet this pattern also exposes a growing imbalance in the housing market. Affordable homes represented only 6% of new launches in Q2 2026, compared with nearly 52% in 2018. That shift has implications beyond developers’ balance sheets. For urban households, especially first-time buyers, a market increasingly weighted towards homes above ₹1 crore can widen the gap between housing supply and actual affordability. The funding requirement therefore needs to be assessed not only by how much capital enters real estate, but also by where that capital is deployed.

Residential development is expected to absorb the largest portion of the projected real estate funding requirement. At the same time, institutional money remains more heavily concentrated in offices. Office assets drew about $1.9 billion, or more than 40% of institutional real estate inflows, during H1 2026, compared with roughly $0.5 billion for residential assets. Supply is also building rapidly. The eight leading cities added around 1.87 lakh residential units in the first half of 2026. If that pace continues, annual additions could remain around 3.5-4 lakh units through 2026-27. Mumbai, Bengaluru and Pune together accounted for nearly 60% of launches during the early part of the year. However, capital availability alone will not resolve the sector’s structural risks. Mumbai and Pune have housing inventory equivalent to more than 30 months of sales, while refinancing remains sensitive to interest-rate movements. These conditions could influence both project timelines and developers’ ability to sustain new supply.

For regulators, including RERA authorities, the next phase of expansion makes transparency, construction progress, fund discipline and timely project delivery increasingly important. As investment grows, stronger oversight can help ensure that rapid urban development translates into usable homes and functioning neighbourhoods rather than simply a larger pipeline of projects. The central challenge for India’s property market is therefore shifting from attracting capital to directing it responsibly. The success of the next decade will depend on whether financing can support housing choice, infrastructure capacity and more balanced urban growth alongside commercial returns.

Also Read: India Real Estate Capital Needs Rise Amid Urban Growth

India Real Estate Funding Puts RERA Under Focus