The growth of Australia’s real estate private credit market is gaining significant attention, with the segment forecast to near $90 billion by the decade’s end. In this Ausbiz interview, Zagga CEO & Co-Founder, Alan Greenstein shares his thoughts on the tailwinds driving the demand for, and growth of, real estate private credit – from domestic and offshore participants.
Source: ausbiz
Date: 16 February 2026
• Private real estate credit in Australia forecast to approach $90 billion by decade’s end
• Rising regulatory scrutiny aims to improve industry transparency and consistency
• Expertise, trust, and flexibility are crucial for credit managers and developers
• Australian private credit increasingly attracts international capital due to market stability and returns
In this interview, Greenstein points to Basel regulatory constraints as a primary driver, making it more expensive for major banks to offer certain types of lending, especially construction loans. The chronic housing shortage in Australia – currently estimated at over a million homes – heightens demand for private lenders, enabling them to fill funding gaps left by traditional banks in an $11.5 trillion property market.
Greenstein states that well-established private lenders now play a critical role in the funding process and are firmly integrated into the market. As regulatory scrutiny increases, he views enhanced regulation as a positive development that will level the playing field and ensure consistent standards for all participants. However, transparency, a strong track record, and trustworthiness are cited as key qualities distinguishing top-performing credit managers from competitors.
Repeat business with bank-grade borrowers is becoming standard, with Greenstein emphasising the importance of expertise, flexibility, and reliability for property developers seeking private credit. Increased international interest in Australian real estate private credit is noted, attributed to Australia’s economic stability, lender-friendly environment, and proximity to Asia Pacific markets.
