NEW DELHI, Apr 21: The Indian real estate sector has received Rs 74,000 crore from Alternate Investment Funds (AIFs) till December 2024, highest among all sectors, according to Anarock.

  AIFs – privately pooled funds that invest in non-traditional assets like private equity, hedge funds, and real estate – offer niche, high-risk, high-reward opportunities suited for experienced investors.

Real estate consultant Anarock has compiled Sebi data related to AIFs.

Till December 2024, AIFs have cumulatively invested Rs 5,06,196 crore across all sectors.

The real estate sector accounted for the largest share of 15 per cent of cumulative net AIF investments at Rs 73,903 crore.

“The rise of Alternate Investment Funds (AIFs) has significantly transformed real estate financing in India, offering a crucial lifeline to projects struggling with lack of funding and unlocking new opportunities for developers,” Anarock said.

AIFs have invested Rs 30,279 crore in IT/ITeS, Rs 26,807 crore in Financial Services, Rs 21929 crore in NBFCs, Rs 21,273 crore in banks, Rs 18,309 crore in pharma, Rs 12,743 crore in FMCG, Rs 11,550 crore in retail and Rs 11,433 crore in the renewable energy sector. Other sectors received Rs 2,77,970 crore from AIFs.

Prashant Thakur, Regional Director & Head – Research at 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.”

“Since they pool capital from domestic and foreign investors, AIFs are a sustainable and scalable funding ecosystem. Going forward, the adoption of blended finance models, AI-driven risk assessments, and streamlined regulatory frameworks maximise the impact of AIFs further,” he added.

The number of AIF active in the market has grown 36-fold over the past decade – from 42 by March 31, 2013, to 1,524 AIFs as of March 5, 2025, with commitment raised increasing five-fold since 2019.

Anarock Chairman Anuj Puri said The SWAMIH Fund, India’s flagship AIF and arguably the most prominent, has helped revive numerous stalled projects.

“By facilitating the completion of many thousands of housing units, SWAMIH Fund has been an unmitigated boon for homebuyers across the country and helped bring considerable stability to the real estate market. That said, the SWAMIH Fund fights a constant uphill battle against various impediments,” he added.

Commenting on the report, Ankur Jalan, CEO of Golden Growth Fund, said the AIFs have become an important investment vehicle for institutional investors and HNIs, and have also widened the scope for developers to secure funding.  (PTI)