Over the past decade, Alternative Investment Funds (AIFs) in India have experienced significant growth, particularly in real estate, which accounts for 17% of total AIF investments. SEBI data reveals that AIF commitments surged from INR 2,82,148 Cr in FY 2019 to INR 12,43,083 Cr in H1 FY2025, reflecting a 340% increase and an 83.4% CAGR. Category II AIFs, including Real Estate Funds and Private Equity, dominate the sector, contributing nearly 80% of total commitments. Both domestic and foreign portfolio investors are increasingly active, with real estate projects relying heavily on equity financing, raising substantial amounts in 2024.

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