Real estate emerges as top recipient of AIF investments, attracts ₹74,000 crore in first nine months of FY2025
The real estate sector has emerged as the top recipient of net investments from Alternate Investment Funds (AIFs), attracting nearly ₹74,000 crore until December 2024—the highest among all sectors—according to a report by Anarock Research.
The report also highlights the role of the SWAMIH Fund, India's flagship AIF, which has injected over ₹35,000 crore to date, helping revive several stalled housing projects across the country.
AIFs are privately pooled funds that invest in non-traditional assets like private equity, hedge funds, and real estate and offer niche, high-risk, high-reward opportunities suited for experienced investors.
The AIF Research Report 2025 compiled using SEBI data showed that the real estate sector accounted for the largest share (15%) of cumulative net AIF investments, with ₹73,903 crore invested in real estate out of an all-sector 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.
'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 maximize the impact of AIFs further," said Prashant Thakur, Regional Director and Head – Research, ANAROCK Group.
The SWAMIH Fund, India's flagship AIF and arguably the most prominent, has helped revive numerous stalled projects with liquidity infusions of over ₹35,000 crore to date, said Anuj Puri, chairman, ANAROCK Group.
Also Read: Is your housing project delayed? SWAMIH fund 2.0 of ₹15,000 crore to complete 1 lakh projects in Budget 2025
'The SWAMIH Fund's encumbered journey underscores that addressing India's stalled housing crisis requires more than just capital — it demands systemic reform," says Puri. "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."
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