Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Alternative Investment Funds (AIFs) channelled close to INR 74,000 crore into Indian real estate by the end of 2024, securing the highest share of AIF inflows among all sectors, as per data compiled by Anarock from SEBI. Of the cumulative INR 5.06 lakh crore invested across sectors, real estate attracted 15%, surpassing IT/ITeS, financial services, and NBFCs. The growth of AIFs has provided crucial funding support for real estate development, especially as traditional financing sources tighten. The number of active AIFs has surged 36 times in the last decade, further highlighting their expanding footprint.
Indian real estate emerged as the top beneficiary of Alternative Investment Fund (AIF) inflows, attracting close to INR 74,000 crore by the end of 2024 more than any other sector, according to a recent analysis by property consultancy firm Anarock. This figure accounted for 15% of the total INR 5.06 lakh crore invested by AIFs across sectors till December 2024. Advertisement
AIFs, structured as privately pooled investment vehicles within India, collect capital from sophisticated domestic and foreign investors to target high-risk, high-reward investment opportunities in areas such as private equity, hedge funds, and real estate. These funds have become increasingly vital for sectors like real estate, which face growing constraints in securing traditional forms of credit.
Anarock highlighted that AIFs have helped transform India's real estate financing environment by offering timely funding to stalled projects and opening up new avenues for developers. The consultancy stated that the growth of AIFs has not only addressed critical capital gaps in various project stages but also catalysed broader investment momentum.
Apart from real estate, AIFs channelled INR 30,279 crore into IT/ITeS, INR 26,807 crore into financial services, INR 21,929 crore into non-banking financial companies (NBFCs), INR 21,273 crore into banking, and INR 18,309 crore into pharmaceuticals. Other notable sectors receiving AIF support include FMCG (INR 12,743 crore), retail (INR 11,550 crore), and renewable energy (INR 11,433 crore). Collectively, other industries garnered a cumulative INR 2.77 lakh crore in AIF investments.
Anarock Group's Regional Director & Head of Research, Prashant Thakur, observed that AIFs have emerged as agile and adaptive sources of finance, especially valuable at a time when conventional funding avenues are increasingly restricted. He also noted that AIFs' ability to attract both domestic and international investors makes them a long-term and scalable solution for India's real estate financing needs. Looking ahead, he expects the ecosystem to be further enhanced through AI-driven risk models, blended finance strategies, and better regulatory alignment.
Reflecting on the market evolution, Mt. K Kapital's Founder and Managing Director, Binitha Dalal, remarked that real estate's leading position in AIF allocations is indicative of a broader shift in investor behaviour. She noted that investors are now viewing real assets as strategic financial instruments rather than merely tangible holdings. This shift, she explained, signals the growing maturity of the market, supported by the emergence of new funds and investment structures that cater to diverse risk-return preferences.
Golden Growth Fund's CEO, Ankur Jalan, added that AIFs have become a preferred vehicle for institutional and high-net-worth investors, simultaneously expanding funding access for developers and enhancing market liquidity.
Data also revealed a dramatic increase in the number of AIFs in India, growing 36 times in the last ten years from 42 in early 2013 to 1,524 as of early March 2025. The total capital commitment has multiplied five-fold since 2019, underscoring the expanding relevance of AIFs in India's evolving financial ecosystem.
The rapid rise in AIF count and capital commitment signifies an increasing reliance on this alternative channel, marking a new chapter in real estate finance. As regulatory frameworks evolve and risk assessment technologies mature, the role of AIFs is set to become even more integral to the sector's sustained growth.
Source: PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
