Curation Team
NEW DELHI: The real estate sector accounted for 15 per cent (largest share) of cumulative net Alternate Investment Funds (AIFs) investments, with ₹73,903 crore invested in real estate out of an all-sectors total of ₹5,06,196 crore. Other sectors benefiting from AIF investments include IT/ITeS, financial services, NBFCs, banks, pharma, FMCG, retail, renewable energy, and others, according to Anarock Research.
By the end of 9M FY25, AIF investments in real estate rose from ₹68,540 crore by FY 2024-end to ₹73,903 crore – an eight per cent growth in first three quarters of fiscal year 2025.
Prashant Thakur, regional director & head-research, Anarock Group, said, “Amidst increasing constraints on traditional funding sources, AIFs are an agile and innovative financing mechanism to address capital gaps at various stages of real estate development.”
The number of AIF active in the market has grown 36-fold over the past decade – from 42 by March 31, 2013 to a 1,524 AIFs as of March 5, 2025, with commitment raised increasing five-fold since 2019. Between FY13 and FY25, the commitment raised in AIFs has seen an impressive 83.4% compounded annual growth rate (CAGR).
This surge in commitments is mainly fuelled by Category II AIF, which is contributing almost 80 per cent over the last five fiscal years. Domestic investors continue to hold the majority share in AIF fundraising activities; however, Category II AIFs exhibit a notable balance with foreign portfolio investors (FPIs) having an almost equal participation.
“The SWAMIH Fund’s encumbered journey underscores that addressing India’s stalled housing crisis requires more than just capital — it demands systemic reform. “Overcoming entrenched bottlenecks like regulatory delays, lender resistance, and cash flow constraints is key to unlocking its full potential. If these challenges are tackled head-on, the Fund can truly bridge the gap between promise and execution on its mission to rescue homebuyers who have no other recourse,” said Anuj Puri, chairman, Anarock Group.
