Alternative Investment Funds (AIFs) are flooding into the country’s real estate sector. According to real estate consultant Anarock, these investments have reached a total of Rs 75,000 crores. The report revealed that 17% of the total AIF investments have been directed towards the real estate sector. It also highlighted significant growth in AIFs in India over the past decade. Compared to other sectors, AIF investments are predominantly flowing into real estate. As of the second quarter of 2024-25 (September), Rs 75,468 crores (17%) of the total Rs 4,49,384 crores of AIF investments were directed into the real estate sector.
Following real estate, sectors such as IT/ITES, financial services, NBFCs, banks, pharmaceuticals, FMCG, retail, renewable energy, and other industries also benefited from AIF investments. By March 2024, Rs 68,540 crores had been invested in real estate through AIFs, and by the second quarter of 2024-25, this figure had increased to Rs 75,468 crores, as revealed by Anuj Puri, Chairman of Anarock.
After real estate, the highest AIF investments were in IT/ITES, with Rs 27,815 crores, followed by Rs 25,782 crores in financial services, Rs 21,503 crores in NBFCs, Rs 18,242 crores in banks, Rs 17,272 crores in pharmaceuticals, Rs 11,680 crores in FMCG, Rs 11,379 crores in retail, Rs 10,672 crores in renewable energy, and Rs 2,29,571 crores in other sectors. The report also noted that 80% of total AIF investments over the last five years have come from Category-2 funds.
