The real estate sector is the primary constituent of the built environment, which is responsible for over 40% carbon emissions on earth (Rose, World Econ Forum, 2022; Carlin, 40% of emissions come from real estate; here’s how the sector can decarbonize. Forbs 2022). The greening of the real estate sector is critical for our sustainable future, and it would not be possible in the absence of sustainable finance through our financial institutions and capital markets, especially debt finance. Residential real estate development (RRED) projects are the largest asset class in terms of built-up area added in our cities, hence availability of debt finance is crucial for residential development projects. Till now, customer advances have been treated as project execution debt. This research explores the availability of debt finance and debt exposure of listed real estate companies and investigates the reasons for under or over debt exposure. This secondary data research has been undertaken through quantitative analysis using annual reports of the 15 listed real estate developers. Authors have established the constrained availability of project debt finance through banking channels for the RRED project developers. This study adds to the body of knowledge by highlighting a critical policy gap for RRED projects, i.e. availability of debt finance which is an under researched area in India.