AIF real estate investments fall, but fund managers see continued demand
Repayments and refinancing may be offsetting fresh deployment even as funds see opportunities across residential, warehousing and redevelopment
Cumulative investments by alternative investment funds in real estate dropped significantly in the June quarter, but fund managers assert the decline does not signal a widespread slowdown in the sector. Despite a 32 percent decrease, real estate remained the primary sector for AIF investments, with total AIF assets crossing the ₹7 trillion mark for the first time at ₹7.11 trillion.
SEBI data showed cumulative AIF investments in real estate at ₹87,969 crore as of June 2026, compared to ₹1.29 trillion at the end of March. Fund managers interpret the sharp quarter-on-quarter change in the real estate figure as more of a reclassification than a true decline, citing the way SEBI reports cumulative investments since inception rather than what exited in the quarter.
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