Real Estate Emerges as the Largest Recipient of AIF Capital in India
Real estate has become the single largest recipient of Alternative Investment Fund (AIF) capital in India.
Beyond traditional bank loans and private-equity inflows, AIFs now anchor nearly 80% of Category II commitments, injecting capital into stalled projects, mid-income housing, logistics, and developer-credit markets.
As of June 2025, total AIF commitments stood at ₹14.2 lakh crore, with funds raised amounting to ₹6 lakh crore.
Deployment Focus — Which Segments Are Leading?
Residential: Luxury and mid-income plays remain prominent.
Logistics / Warehousing: Rising investor preference driven by India’s e-commerce and supply-chain expansion.
Developer Credit / Real-Estate Credit: Focused on project completion and structured yield instruments.
Commercial / REIT Pipeline Assets: Opportunistic buys and value-unlock strategies aimed at later monetisation.
Accelerators of Growth
The rapid scale-up in AIF assets and commitments has provided a solid fundraising base.
Yield arbitrage amid credit-market gaps continues to strengthen interest in developer credit.
AIF net deployment in real estate hovered around ₹74,000 crore in FY25.
Median fund sizes for new launches are estimated between ₹300–₹700 crore.
Top AIFs Fundraising (Targets)
Nisus ‘RESO-I’ – Target: ₹1,500 crore (green-shoe), for distressed / stressed real-estate assets.
Aditya Birla Sun Life Realty Credit Fund – Target: ₹1,500 crore (credit / secured lending).
Welspun One Logistics Parks – Second AIF in warehousing / industrial real estate; Target: ₹2,000 crore.
ASK Curated Luxury Assets Fund I – Initial close ₹500 crore; aiming up to ₹1,000–₹1,500 crore (luxury assets).
Meenakshi Real Assets Fund – Target: ₹700 crore (hybrid debt-equity structure).
Challenges & Emerging Opportunities
Deployment lags in long-gestation real-estate projects due to cash-flow and liquidity management constraints.
Disclosure gaps persist in investor geography and IRR transparency.
Regulatory adjustments in the AIF framework remain dynamic and evolving.
“The surge in alternative-investment-fund activity reflects a deepening investor appetite for structured, yield-driven opportunities beyond traditional assets,”
— Amit Goenka, Managing Partner, Nisus Finance
For strategic insights into AIF-driven real-estate funding and structured-yield opportunities, explore perspectives from Ranjit Jha (CEO) — a thought leader in India’s alternative-investment and private-capital ecosystem.
To learn how AIFs and private-credit strategies can diversify and strengthen your portfolio, connect with Rurash Financials — experts in investment structuring, real-asset funding, and wealth management.