Real estate emerges as top recipient of AIF investments, attracts ₹74,000 crore in first nine months of FY2025
Real estate sector emerged as the largest beneficiary of Alternate Investment Fund (AIF) investments, attracting ₹74,000 cr in the 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.
By the end of 9M FY25, AIF investments in real estate rose from ₹68,540 crore by FY 2024-end to ₹73,903 crore - an appreciable 8% growth in first three quarters of fiscal year 2025. This pace is expected to sustain and pick up, the report showed.
“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.
SWAMIH Fund helps revive stalled projects
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.
“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,” said Puri.
“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."
