Real Estate Leads Alternative Investment Surge in India

Investment by Alternative Investment Funds (AIFs) in Indian real estate has reached ₹75,500 crore over a decade, marking the sector's 17% share of total AIF inflows, the highest across sectors. This growth reflects both sectoral preference and substantial decadal increases in AIF fund availability.

Investment in Indian real estate by Alternative Investment Funds (AIFs) has impressively reached nearly ₹75,500 crore over the past decade, making it the sector with the largest share of AIF inflow at 17%, according to real estate consultant Anarock.

Anarock's latest report highlights significant growth in AIF investments in India, with real estate emerging as the top choice. The Securities and Exchange Board of India (SEBI) data, compiled by Anarock, reveals that as of H1 FY2025, real estate accounts for the highest AIF investment of approximately ₹75,468 crore out of the total ₹4,49,384 crore across sectors.

Other sectors, including IT/ITeS, financial services, NBFCs, and banks, also benefit from AIFs. Anarock notes the rising dominance of Category II AIFs, responsible for 80% of commitments, and emphasizes the safety, security, and flexibility offered by real estate-focused AIFs, as noted by Ankur Jalan, CEO of Golden Growth Fund.

(With inputs from agencies.)