Indian real estate has emerged as the leading sector for Alternative Investment Funds (AIFs) in India, attracting an impressive ₹75,500 crore in investments, according to Anarock's recent analysis. Over the last decade, AIFs have demonstrated significant growth, with real estate capturing a dominant 17% share of total inflows. This sector’s investment share surpasses other sectors like IT/ITeS, financial services, NBFCs, and banks, showcasing its robust potential.
Latest SEBI data compiled by Anarock highlights that real estate investments via AIFs increased significantly, rising from ₹68,540 crore at FY2024-end to ₹75,468 crore by the first half of FY2025, marking a 10% growth in just six months. Other sectors such as IT/ITeS and financial services recorded investments of ₹27,815 crore and ₹25,782 crore, respectively, but still lag behind the booming real estate sector.
Anarock Chairman Anuj Puri attributes this growth to the flexibility of Category II AIFs, which include real estate funds, private equity, debt funds, and fund-of-funds, driving nearly 80% of the total AIF commitments over the last five years. Experts like Ankur Jalan, CEO of Golden Growth Fund, emphasize the secure nature of real estate-focused AIFs and their ability to attract smaller investments, further fueling the sector’s growth.
Golden Growth Fund plans to leverage this trend by raising ₹400 crore for developing real estate projects in the national capital, underlining the growing investor confidence in this asset class. With substantial investments and tailored opportunities, Indian real estate remains a preferred choice for AIFs, cementing its position as a vital driver of the country’s economic landscape.
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