Mumbai: Real estate continues to lead the way in Alternate Investment Fund (AIF) deployments in India, attracting ₹73903 crore in net investments as of the first nine months of FY2025, according to ANAROCK Research’s latest AIFs report. The sector accounts for the highest share—15 per cent—of the cumulative ₹5,06,196 crore invested by AIFs across various industries.
Anarock Report
The findings underscore the growing role of AIFs in addressing capital shortages in Indian real estate, especially as conventional funding channels face increasing regulatory and economic constraints. Other sectors that have drawn AIF investments include IT/ITeS (₹30,279 Cr), Financial Services (₹26,807 Cr), NBFCs, Banks, Pharma, FMCG, Retail, and Renewable Energy.
From FY2019 to 9M FY2025, the AIF sector has maintained a compound annual growth rate (CAGR) of approximately 26%. Overall AIF commitments during this period surged from ₹2.82 lakh crore to over ₹13.05 lakh crore.
Category II AIFs—featuring real estate funds, private equity, and debt instruments—have played a dominant role, contributing nearly 80% of total AIF activity in the past five fiscal years. These funds have attracted both domestic and foreign portfolio investors, with a near-even participation rate.
“The growing traction of AIFs, especially Category II funds, reflects their flexibility and strategic importance in addressing funding gaps across the real estate value chain,” said Prashant Thakur, Regional Director & Head – Research, ANAROCK Group. “Innovations like AI-driven risk assessment, blended finance models, and regulatory support are expected to further boost their impact.”
As part of this momentum, the government-sponsored SWAMIH Fund has provided liquidity support of over ₹35,000 crore, aiding in the completion of thousands of delayed housing units. However, its progress is hindered by issues such as regulatory bottlenecks, homebuyer litigations, and resistance from existing lenders.
“The SWAMIH Fund has been pivotal in restoring buyer trust and project viability,” noted Anuj Puri, Chairman – ANAROCK Group. “But to truly address India’s housing challenges, systemic reforms are needed beyond capital infusion.”
With 1,524 AIFs now registered with SEBI—up from just 42 in 2013—the sector’s transformation is both rapid and substantial. Its continued rise is expected to reshape India’s investment and real estate financing landscape over the coming years.
