Real Estate Tops Sectoral AIF Investment

As per data compiled from SEBI and ANAROCK Research, real estate accounted for the highest share of cumulative net AIF investments till the first nine months (9M) of FY2025, with ₹73,903 crore infused into the sector. This represents 15% of the total ₹5,06,196 crore invested across various sectors.

Net AIF Investments by Sector – 9M FY2025

The ₹73,903 crore investment in real estate marks an 8% increase from ₹68,540 crore at the end of FY2024—signaling continued momentum in the sector despite macroeconomic headwinds.

AIFs Powering Real Estate Revival

“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,” said Prashant Thakur, Regional Director & Head – Research, ANAROCK Group.

He added that the future of AIFs lies in blended finance models, AI-driven risk assessments, and streamlined regulatory frameworks, all of which will maximize their impact on infrastructure and housing.

Commitments Skyrocket Across the Decade

The AIF sector in India has grown exponentially, with commitments rising from ₹2.82 lakh crore in FY2019 to ₹13.05 lakh crore in 9M FY2025—a near five-fold increase. From just 42 registered AIFs in 2013, the number surged to 1,524 as of March 2025.

AIF Commitments: FY2019 vs 9M FY2025

Category II AIFs—comprising real estate, private equity, debt funds, and fund of funds—have been the primary growth engine, accounting for nearly 80% of total AIF commitments over the past five years.

SWAMIH Fund: Real Estate’s Financial First Responder

India’s flagship real estate AIF, the SWAMIH Fund, has played a pivotal role in reviving stalled housing projects, injecting over ₹35,000 crore into the market. It has successfully enabled the completion of thousands of homes for distressed homebuyers.

“The SWAMIH Fund has been an unmitigated boon for homebuyers across the country,” said Anuj Puri, Chairman, ANAROCK Group. “However, the Fund’s journey is fraught with regulatory, financial, and operational challenges.”

Challenges Facing SWAMIH Fund

Despite its success, SWAMIH still faces systemic roadblocks that limit its full potential.

Key Bottlenecks

“Fixing India’s housing crisis needs more than capital — it demands reform,” added Puri.

Conclusion: AIFs Driving New Era in Real Estate Funding

AIFs are no longer on the fringes of India’s investment ecosystem. With growing institutional interest, high net-worth participation, and a sharp focus on real estate, they are positioned to bridge critical funding gaps in urban development and housing.

As regulatory frameworks evolve and adoption widens, AIFs—particularly Category II and vehicles like SWAMIH—are likely to redefine the contours of real estate financing in the country.

Also Read: Modern Real Estate Investment Approaches Empowering Retail Investors in Long-Term Wealth Building

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Domestic investors followed a similar trend, with their share dropping to 30% in 2024 from 35% in the previous year. However, they too recorded a 36% growth in investment value.

A notable highlight was the rise of co-investments—joint funding by foreign and domestic investors—which surged to 16% of total investments in 2024, compared to a negligible share in 2023. Co-investments registered a remarkable 61-fold increase in value, as foreign investors leveraged the local expertise of domestic partners amid macroeconomic uncertainty.

Institutional investments in real estate reached USD 6.8 billion in 2024, marking a 61% year-on-year increase and surpassing pre-pandemic levels. This resurgence comes after a four-year decline, driven largely by the industrial and warehousing sector, which benefited from robust e-commerce and quick-commerce demand.

Shifts in Asset Investment

The commercial real estate segment, which has traditionally dominated investments, accounted for 35% of total investments in 2024, down from 61% in 2023. The decline reflects a slowdown in the IT-ITeS sector, although growing demand for Global Capability Centers (GCCs) is expected to renew interest in office spaces.

Meanwhile, the residential sector attracted USD 2 billion in investments, representing 30% of the total and a 171% increase from 2023. Similarly, the industrial and warehousing sector grew by 203%, increasing its share from 15% in 2023 to 28% in 2024.

Yearly Investment Trends

Institutional investments rebounded in 2024 after consecutive declines since 2020. The yearly investment trend highlights the following:

Expert Outlook

Shrinivas Rao, FRICS, CEO of Vestian, noted, “Despite a slow start, institutional investments in 2024 exceeded pre-pandemic levels. However, 2025 could pose challenges due to geopolitical tensions, global economic slowdown, and elevated inflation. A potential repo rate cut by the RBI could stimulate real estate activity, attracting more investors.”

Return-to-office policies, government initiatives like the Production Linked Incentive (PLI) scheme, and a focus on affordable housing are expected to boost real estate demand and investor participation in the coming years.

Key Insights:

• Foreign Investors: 54% share, USD 3.7 billion investments.
• Co-Investments: 16% share, 61-fold increase in value.
• Sector Growth: Residential investments up by 171%; industrial and warehousing up by 203%.
• 2024 Total Investments: USD 6.8 billion, up 61% year-on-year.

Also Read: cross-border investment

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Strong Collections and Expansion Highlights

Collections for Q3FY25 surged to ₹42.9 billion, a 66% YoY growth from ₹25.9 billion in Q3FY24. This performance reflects a 40% improvement compared to ₹30.7 billion collected in Q2FY25.

As part of its business expansion, Lodha added one new project in Bengaluru with a Gross Development Value (GDV) of ₹28 billion, taking the total number of projects in the city to five. The new additions are expected to drive significant pre-sales growth in Bengaluru in the upcoming fiscal year.

Over the first nine months of FY25, the group has added eight new projects across Mumbai Metropolitan Region (MMR), Bengaluru, and Pune, with a combined GDV of ₹195 billion, achieving over 90% of its full-year guidance.

Focus on Digital Infrastructure and Debt Reduction

In Q3FY25, Lodha acquired approximately 33 acres of land in the National Capital Region (NCR) to expand its digital infrastructure business, including warehousing and industrial assets. The company also entered into an agreement to increase its stake in rental income from its digital infrastructure platform, aligning with its strategy to build annuity income and reduce reliance on development activities.

On the financial front, strong collections enabled Lodha to reduce its net debt by ₹6.1 billion, bringing it down to ₹43.2 billion, well within its target ceiling of 0.5x Net Debt/Equity.

Performance Summary

With its strategic focus on growth and debt reduction, Lodha Group continues to strengthen its position as a leading player in the Indian real estate market.

Also Read: lodha interest rate

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The industrial & warehousing segment emerged as the top-performing asset class, accounting for USD 2.5 billion in investments, a 190% surge from the previous year. The sector contributed 39% of the total realty inflows, surpassing the office segment’s USD 2.3 billion (36% share). Foreign investments dominated, contributing over 80% to the industrial inflows, highlighting India’s growing prominence as a global manufacturing hub.

The office segment also witnessed significant activity in the second half of the year, with investments rebounding to USD 2.3 billion. Meanwhile, residential investments grew by 46% YoY, reaching USD 1.1 billion, driven by sustained interest from domestic players.

Key Highlights of 2024 Realty Investments:

• Total Investments: USD 6.5 billion, the highest since 2020, up 22% YoY.
• Industrial & Warehousing: USD 2.5 billion, marking a 190% increase.
• Office Assets: USD 2.3 billion, driven by foreign investments (77%).
• Residential Sector: USD 1.1 billion, up 46% YoY.
• Domestic Investments: Accounted for 33% of inflows, increasing by 27% YoY.

Mumbai attracted the highest share of investments at 24%, with USD 1.6 billion inflows primarily focused on office and industrial assets. Multi-city deals accounted for 39% of total investments, while Bengaluru, Chennai, and Delhi NCR maintained steady inflow shares of 8-9% each.

Key Drivers:

1. Industrial Growth: India’s manufacturing boom and enhanced logistics efficiency fueled industrial & warehousing investments.
2. Domestic Momentum: Domestic investments surged, reflecting growing confidence among Indian institutional investors.
3. Foreign Capital: Foreign investments comprised 66% of the total inflows, with APAC investors contributing significantly.

Expert Insights:
“Indian real estate continues to attract robust investments, underscoring the sector’s resilience and growth potential. Industrial and warehousing assets have taken center stage, reflecting strong demand and India’s emergence as a manufacturing hub,” said Badal Yagnik, CEO, Colliers India.

Looking ahead, the real estate market is expected to sustain its momentum in 2025, with Tier-I cities remaining the primary focus. Rising demand for Grade A developments and evolving infrastructure initiatives are likely to drive further growth across asset classes.

City-Wise Investment Trends (2024):

• Mumbai: USD 1.6 billion (24% share).
• Multi-City Deals: 39% share of total investments.
• Bengaluru & Chennai: 9% and 8% shares, respectively.

Indian real estate continues to shine as a lucrative investment destination, with 2024 marking a pivotal year in its growth trajectory.

Also Read: Industrial & Logistics Real Estate

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Bengaluru, the Silicon Valley of India, is synonymous with technological expertise and economic growth. Its skyline, replete with towering skyscrapers and vast residential tracts, speaks volumes of its booming real estate sector driven by India’s thriving IT and corporate sectors. The past few years have seen Global Capability Centres (GCCs) emerge as a dominant factor in Bengaluru’s real estate dynamics.

GCCs are the Offshore Development Centres of global enterprises. These centres, driven by government policies, have highly impacted the residential and commercial real estate sectors of Bengaluru, besides raising the city’s global status. Bengaluru was the first choice for setting up GCCs in India because of its skilled manpower, innovative infrastructure, and cosmopolitan culture.

Favourable Government Policies Driving GCC Expansion

The Karnataka Government’s GCC Policy, which aims to set up 500 new GCCs by 2029, has been significantly driving the state’s urban growth. Besides bringing multinationals from all around the globe to Karnataka, the GCC policies of the state have driven significant infrastructure investments. This includes the enhancement of the Bangalore Metro and the Peripheral Ring Road, as well as the upcoming knowledge, wellbeing, and innovation city – KWIN city. These projects are aimed at connecting and improving infrastructure, thus making Bengaluru a desirable hub for residential and commercial investment.

Additionally, the policy is expected to create 3.5 lakh jobs, which will bring countless professionals to the city.

Also, the government’s efforts towards sustainable urban growth have promoted developers to embrace green building practices and eco-friendly designs. These initiatives align with the sustainability goals supported by multinational corporations operating GCCs, thus creating an appealing link between policy and real estate development.

Thriving Commercial Realty Driving Demand for Residential Spaces

The growth of GCCs has propelled Bengaluru’s commercial real estate sector. Industry reports show that between 2020 and 2023, Bengaluru accounted for 26.4 million square feet of GCC leasing, or 37% of total GCC leasing, thus making Bengaluru the largest contributor in this particular segment. Also, demand for commercial space has gone up, along with rental values as multinational companies are increasingly setting up large facilities. Occupancy percentages in business districts are also on the rise. A report by CREDAI and CRE Matrix says that the supply of high-end office space in six major cities has exceeded 700 million square feet, with Bengaluru accounting for the largest share at 28%.

Such high demand for commercial properties is creating ripples in the residential market as well. Let’s see how:

The GCC influx in Bengaluru has driven considerable economic growth by generating high-paying jobs and attracting affluent expatriates and skilled professionals. These employees, mainly mid-level and senior professionals, look for upscale living spaces to stay nearby, which in turn has increased the demand for luxurious apartments, gated communities, and smart homes designed with modern amenities in Bengaluru. The growing popularity of smart homes with installed IoT-enabled devices, energy-efficient systems, and advanced security solutions resonates with the tech-savvy lifestyle of GCC employees.

Residential Real Estate Trends

Evolving employee preferences have transformed the residential real estate scene in Bengaluru. Developers are now focused on developing high-end projects in North Bengaluru and districts like Whitefield, Sarjapur Road, and Outer Ring Road, which are conveniently located near major IT and GCC hubs. These areas provide proximity to workplaces besides offering serene and well-structured living environments. Consequently, integrated townships and mixed-use developments, which integrate residential, commercial, and recreational spaces, have gained immense popularity in such regions. For GCC professionals, it means convenience, connectivity, and improved living conditions.

Co-living spaces are equally gaining traction in Bengaluru, particularly among younger professionals and expatriates. Besides being affordable and flexible, these shared accommodations offer a sense of community, thus making them ideal for Bengaluru’s migrant workforce. Furthermore, the hybrid work model is also influencing the residential realty sector. More professionals look for homes that can also serve as productive workspaces. Consequently, developers are designing properties with dedicated office areas, high-speed internet, and ergonomic features to cater to these requirements.

Opportunities in Residential Real Estate Going Forward

GCCs’ influence on Bengaluru’s residential real estate market will increase in the coming years. The city will gain further recognition as a real estate hotspot as it solidifies its standing as a top spot for global capability centres. What’s more, the infrastructure development driven by GCCs has led to rising property prices in significant locations. Thus, developers in Bengaluru are reaping the benefits of the growing housing demand through innovative construction technologies and design principles to cater to the tastes and preferences of GCC employees. Smart city concepts, ranging from integrated digital infrastructure to sustainable practices, are also becoming part and parcel of residential projects. These developments address the requirements of professionals in the GCCs besides positioning Bengaluru as a global city offering premium living experiences. Due to its focus on urban planning, sustainable growth, and policy support, the city is well-positioned to maintain its competitive edge.

Future Prospects: Bengaluru as a Global Hub

With GCCs projected to generate an economic output of $50 billion by 2029, Bengaluru’s real estate market is set to grow exponentially. Property prices in prime GCC locations, such as North Bengaluru, are already seeing significant appreciation, averaging over ₹7,000 per square foot. These trends make the city a magnet for investors and end-users alike. Continued investment in infrastructure, sustainable development, and innovative real estate solutions should make Bengaluru a hub of excellence not only for global businesses but also homeowners.

Also Read: Bengaluru property values

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Mumbai has recently witnessed a remarkable real estate boom, with property registrations reaching new highs. This surge, amidst global economic uncertainties and inflation, reflects robust buyer confidence, bolstered by favorable market trends, government support, and evolving lifestyle needs. The Mumbai Metropolitan Region (MMR) further reinforces its dominance as the most active market for new residential projects among India’s top seven cities. In Q3 2024 alone, MMR accounted for an impressive 32% of the total market share, with the launch of approximately 29,600 new units, underscoring its leading role in shaping India’s real estate landscape.

1. Government Initiatives Fueling Property Registrations

Government policies have played a crucial role in this real estate resurgence. Several key initiatives have either incentivized buyers or eased operational challenges for developers.

• RERA Enforcement: The implementation of the Real Estate (Regulation and Development) Act (RERA) has boosted buyer confidence by ensuring accountability and transparency. Developers adhering to stringent compliance norms make customers feel more secure in their investments.
• Housing Loans at Attractive Rates: Financial institutions have played a pivotal role in boosting registrations by offering home loans at historically low-interest rates. This surge in affordability is primarily due to the Reserve Bank of India (RBI) holding repo rates steady, allowing buyers—particularly in the middle-income and affordable housing segments—to capitalize on this opportunity to lock in lower monthly payments over the long term.

2. Changing Buyer Preferences

In recent times, developers have noticed a growing preference for mid-income and affordable housing options, especially post-pandemic. More buyers are now seeking spacious homes with better amenities, proximity to open spaces, and improved access to transportation hubs—driven by the increased time spent indoors during lockdowns and hybrid work arrangements. This shift is particularly notable among the same target group that previously favored rentals over purchases, highlighting a changing mindset towards homeownership in a transformed market landscape.

With infrastructure developments like the expansion of the Mumbai Metro and new road networks, suburban areas such as Thane, Navi Mumbai, and Panvel are emerging as prime real estate investment hotspots. Buyers are increasingly attracted to these regions due to the availability of modern amenities, improved connectivity, and spacious living options developers offer. This trend indicates a preference shift as buyers seek value and quality of life outside traditional Mumbai.

3. Developer Strategies to Sustain the Boom

From a developer’s perspective, sustaining the current momentum in property registrations requires more than just capitalizing on market trends. It necessitates strategic planning, innovative project designs, and customer-centric approaches.

• Launching Festive Offers: Festive seasons like Diwali often witness a surge in property purchases, and developers are capitalizing on this trend by offering lucrative discounts, flexible payment plans, and added benefits such as waived registration fees or home furnishings. These offers help create a sense of urgency among buyers, boosting registration numbers during the festive period.
• Customer Engagement: Developers enhance customer engagement by providing interactive virtual property tours. This increases trust and satisfaction, ultimately influencing buyers’ decisions and loyalty toward brands.

4. Looking Ahead

The outlook for Mumbai’s real estate market remains optimistic. Developers expect property registrations to maintain their upward trajectory, driven by strong demand, infrastructural developments, and ongoing government support.

In conclusion, the increase in property registrations across Mumbai and the MMR showcases how developers have played a key role in enhancing customer experiences. Their focus on modern amenities, prime locations, and quality construction has increased buyer satisfaction and trust. This strategic approach has fueled demand, strengthening the real estate market in areas like Thane, Bandra, and Panvel. It will continue to evolve, reflecting the dynamism and ambition of the region’s developers.

Also Read: Lifestyle Amenities Redefine Luxury in Delhi-NCR’s Real Estate Market

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The apartments were purchased at an eye-watering rate of ₹1.43 lakh per square foot, making it one of the most significant residential deals in Mumbai’s luxury real estate market this year. The deal, which was finalized and registered on October 29, 2024, also includes 10 car parking spaces. According to the documents, a total stamp duty of ₹7.29 crore and a registration fee of ₹60,000 were paid for the two apartments.

The first apartment, measuring 7,167 square feet, was acquired by Rajesh Kabra and Monal Kabra for ₹102.76 crore. This unit includes five car parking spaces and is located on the same floor as the second apartment, which covers 6,642 square feet and was bought for ₹95.40 crore by Shreegopal Kabra and Kritidevi Kabra, who also received five car parking spaces.

The Oberoi Three Sixty West project, developed by Mumbai-based Oberoi Realty, is known for its high-end amenities and stunning views of the Arabian Sea. The project, which received its occupation certificate in 2022, includes both 4 BHK and 5 BHK apartments, along with duplexes and penthouses, catering to Mumbai’s ultra-wealthy clientele.

This isn’t the first luxury real estate purchase by the Kabra family. In November 2019, Shreegopal Kabra and his family acquired a duplex on the 42nd floor of the same building, spanning 5,339 square feet, for ₹56 crore.

Notable Buyers at Oberoi Three Sixty West
Several high-profile personalities have also invested in apartments at the Oberoi Three Sixty West project. Bollywood actor Shahid Kapoor, along with his wife Mira Kapoor, purchased a 5,395 square foot apartment in the luxury complex for approximately ₹60 crore in May 2024. Other prominent buyers include D’Mart founder Radhakrishna Damani, Everest Masala Group promoter Vadilal Bhai Shah, and furniture fittings tycoon Ashley Nagpal, all of whom have secured sea-facing luxury homes in the same development.

Also Read: Oberoi Realty to acquire residential premises in Three Sixty West Valued at Rs 4k Cr

The post RR Kabel Promoter Shreegopal Kabra and Family Buy Luxury Apartments for ₹198 Crore in Worli appeared first on Square Feat India.

Amenities at Minerva include a gym, swimming pool, clubhouse, spa, and landscaped gardens. The tower’s location offers good connectivity to business districts such as Lower Parel, Worli, and Nariman Point. Mahalaxmi is known for its high-rise buildings, upscale amenities, and proximity to schools and healthcare facilities.

According to SquareYards.com, Bajpayee purchased the apartment in April 2013 for Rs. 6.40 crore, with a stamp duty of Rs. 32 lakh and a registration fee of Rs. 30,000. This recent sale is part of Bajpayee’s real estate investments, which also include a Rs. 32 crore investment in four office units in Oshiwara last year.

Bajpayee, a prominent actor with three National Film Awards and the Padma Shri, is recognized for his roles in films like Satya, Gangs of Wasseypur, and Aligarh. His recent work in the series The Family Man has further established his position in Indian cinema.

Also Read: Bollywood Producer buys Bandra Home for Rs 103 Cr

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