Alternative Investment Funds: The Game-Changers in Indian Realty

AIFs are transforming India's real estate sector by injecting significant capital into residential, commercial, and logistics segments.

Alternative Investment FundsIndian Real EstateResidentialCommercialLogisticsPrivate EquityInvestment FlowsReal EstateSep 15, 2024

Alternative Investment Funds: The Game-Changers in Indian Realty
Real Estate:Alternative Investment Funds (AIFs) have emerged as a dominant force in the Indian real estate sector by playing a crucial role in reshaping India’s investment landscape. With rising demand for both residential and commercial spaces, as well as an increasing focus on logistics due to the growth of e-commerce, these funds are capitalizing on a variety of opportunities.

Since January 2021, several real estate-focused AIFs have announced plans to raise over $8.2 billion, targeting residential, commercial, and logistics assets. These funds have already secured more than $5.3 billion, showed data from Knight Frank India.

The fund raise is an indication of growing confidence in Indian realty's potential, with robust demand and growth prospects. “Private equity investments in real estate are expected to remain robust in the foreseeable future, with a substantial pipeline of both undeployed capital and real estate assets. An estimated $2 billion is yet to be deployed from $5.3 billion raised for real estate in recent years,\

Frequently Asked Questions

What is the total amount of funds raised by AIFs in the Indian real estate sector since January 2021?

Over $8.2 billion

What is the estimated amount of undeployed capital available for real estate investments in India?

$2 billion

What is the outlook for real estate investment flows in India in the second half of 2024?

Strong momentum is expected due to the turn of interest rate cycle in western economies

What is the role of AIFs in the Indian real estate sector?

AIFs are playing a crucial role in reshaping India’s investment landscape by injecting significant capital into residential, commercial, and logistics segments

What is the expected impact of AIFs on the Indian real estate sector?

AIFs are expected to drive sustained growth and innovation in the sector, with a focus on high-return assets

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