New Delhi, Sept. 6 -- Real estate is likely to remain a major destination for private credit in India, supported by continued project funding and refinancing requirements, but lenders may become increasingly selective as the sector simultaneously emerges as the market's biggest perceived default risk, EY said in a research report.

Real estate accounted for around 35 per cent of private credit deal value in H1 2026, making it the largest sector for deployment. Healthcare accounted for around 13 per cent and food and beverages 12 per cent, with the latter gaining momentum compared with previous periods.

The concentration comes despite heightened risk perception. EY's private credit pulse survey found that respondents continued to identify...