Indian real estate continues to dominate the private investment landscape, securing nearly ₹74,000 crore from Alternative Investment Funds (AIFs) by December 2024. According to a report by Anarock Capital, this marks the highest allocation received among all sectors, signaling strong investor confidence in the sector’s potential for growth and returns. This capital infusion accounted for approximately 42% of the total ₹1.76 lakh crore invested across various sectors, reaffirming real estate as a key pillar of India’s alternative investment strategy.
AIFs, which include private equity, venture capital, and hedge funds, have increasingly turned their focus toward the Indian real estate sector due to favorable regulatory policies, urban expansion, and rising demand for quality residential and commercial spaces. This sustained investment interest is not only driving project execution and innovation but is also boosting liquidity and developer confidence amid broader economic shifts.
Among the sub-segments, residential real estate remained the top beneficiary of the AIF funding, followed by commercial and mixed-use developments. The report attributes this trend to a robust post-pandemic recovery in housing demand, supported by low interest rates, government incentives, and increasing urbanization. Cities such as Mumbai, Delhi NCR, Bengaluru, and Hyderabad have been key hotspots for these investments, attracting significant capital inflows.
Industry experts believe that this growth trajectory will likely continue in 2025, with AIFs playing a central role in shaping the future of Indian real estate. As the sector becomes more structured and transparent, investor participation is expected to widen further. This development also aligns with the government’s vision of promoting infrastructure and housing for all, making real estate not just a lucrative investment option but also a critical component of national economic development.
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