Investment in Indian real estate by Alternative Investment Funds (AIFs) has touched nearly ₹75,500 crore in more than a decade, the highest among all sectors with a 17 per cent share in the total inflow through this route, according to Anarock.
Real estate consultant Anarock on Monday said that the Alternative Investment Funds (AIFs) have shown impressive growth in India over the last ten years. Out of all sectors, real estate stands out as the leading choice for AIF investments across the country.
“Latest SEBI data compiled by Anarock indicates that out of a total of Rs 4,49,384 crore AIF investments made across sectors till H1, FY2025 (till September of this fiscal), real estate’s share was the highest at 17 per cent- totalling nearly Rs 75,468 crore,” the consultant said.
Other sectors benefiting from AIF investments are IT/ITeS, financial services, NBFCs, banks, pharma, FMCG, retail, renewable energy, and others.
Anarock Chairman Anuj Puri said, “of H1 FY25, total investments in the real estate sector via AIFs have risen from Rs 68,540 crore by FY2024-end to Rs 75,468 crore. This is a significant 10 per cent growth in just half the financial year.”
Among other sectors, Anarock data showed that the investment in IT/ITeS sector by AIFs has touched Rs 27,815 crore, financial services Rs 25,782 crore, NBFCs Rs 21,503 crore, banks Rs 18,242 crore, pharma Rs 17,272 crore, FMCG Rs 11,680 crore, retail Rs 11,379 crore, renewable energy Rs 10,672 crore, and others Rs 2,29,571 crore.
The consultant highlighted that the AIF in India has seen a substantial decadal increase in the number of funds available for investment.
“The surge in AIF activity is largely driven by Category II AIFs, which include a mix of Real Estate Funds, Private Equity, Debt Funds, and Fund of Funds (FoF),” Puri said.
The data indicates that over the last five years, Category II AIFs have been responsible for nearly 80 per cent of total AIF commitments, highlighting the dominance of these flexible and tailored investment vehicles.
Commenting on the data, Ankur Jalan, CEO of Golden Growth Fund, said the AIFs investment in real estate is high because fund is safe and secured. He said the investors have the flexibility to infuse small amounts also in real estate-focused AIFs.
Golden Growth Fund, which is a real estate-focused AIF, plans to raise Rs 400 crore from investors to buy land and develop real estate projects in the national capital.