The real estate sector accounted for the largest share of Alternative Investment Funds (AIFs) investments in India in the first half of 2024, an industry report said.
Out of a total of IR4,493.84bn AIF investments made across sectors in the first half this year, real estate’s share was the highest at 17 percent, totalling nearly IR754.68bn, the report by Anarock Research said.
Other sectors which saw significant AIF investments during the period include IT/ITeS, financial services, NBFCs, banks, pharma, FMCG, retail and renewable energy, the report said.
AIF investments in India
AIF in India have seen substantial decadal increase in the number of funds available for investment, the report said, adding that its overall commitment rose by over 340 percent in the past six years, reflecting increasing appetite for alternative investment strategies.
“A deep dive into the data reveals that the surge in AIF activity is largely driven by Category II AIFs, which include a mix of real estate funds, private equity, debt funds, and fund of funds (FoF),” said Anuj Puri, Chairman, Anarock Group.
The report said a major trend within AIFs is the growing reliance on equity financing to bridge gaps in the real estate sector.
“With many real estate projects requiring significant working capital throughout their lifecycle, AIFs have provided a vital source of funding.
“These funds offer a customized capital stack that addresses the unique needs of real estate developers, helping to manage everything from construction to long-term project financing,” the report said.
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