Alternative Investment Funds (AIFs) have made substantial investments in India’s real estate sector, contributing nearly Rs 75,500 crore over the past decade, making it the top choice for AIF investments.
According to data from real estate consultancy Anarock, real estate accounted for 17% of the total AIF inflows, surpassing all other sectors.
Real estate consultant Anarock on Monday stated that Alternative Investment Funds (AIFs) have grown significantly in India over the past decade, with real estate emerging as the top sector for AIF investments.
The consultant asserted, “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.”
Other sectors receiving significant AIF investments include IT/ITeS, financial services, pharma, and renewable energy.
Anuj Puri, Anarock Chairman noted, “By the end 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 percent growth in just half the financial year.”
Beyond real estate, AIFs have invested Rs 27,815 crore in IT/ITeS, Rs 25,782 crore in financial services, and Rs 21,503 crore in non-banking financial companies (NBFCs). Other notable sectors include pharma (Rs 17,272 crore), FMCG (Rs 11,680 crore), and retail (Rs 11,379 crore).
The consultant noted that the number of AIFs available for investment in India has seen significant growth over the past decade.
“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 further added.
The data shows that Category II AIFs have accounted for nearly 80 percent of total AIF commitments over the past five years, highlighting their dominance as flexible and tailored investment options.
Ankur Jalan, CEO of Golden Growth Fund, a real estate-focused AIF, explained that real estate investments offer a secure option for investors, with flexibility to invest smaller amounts in real estate-focused funds.
Golden Growth Fund plans to raise Rs 400 crore to invest in land acquisition and real estate development in Delhi.
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