HNIs, family offices target bigger slice of realty mkt

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₹1 crore. According to experts, the benefits of choosing indirect real estate investment platforms are higher risk-reward returns and investors don’t have to manage a property directly. Rising disposable income among the ultra rich and upper middle class, the regulated and well-structured nature of AIF platforms, and volatile stock markets are key factors for the growing interest.

The asset-backed tangibility and consistent cash flows seen in the sector also provide a psychological fillip to invest. Karthik Athreya, director and head of strategy - alternative credit, at Sundaram Alternates said the general appetite for private credit, whether it is venture debt, real estate or corporate credit, is high due to demand for credit and emergence of several fund managers, showing depth and choice for investor money. This also reduces registration, paperwork and other administrative processes involved in directly owning a property, added Raj Inamdar, managing partner at TriVeda Capital.

AIFs have invested about 21% of their total investment of ₹2.84 trillion in the real estate sector as of 31 March 2022, according to the latest available data from the Securities and Exchange Board of India (Sebi). Though the share of their total investment fell by about 3.3% during the year, these platforms expect this to rebound going forward. In the recent past, institutional firms such as Kotak Alternate Assets, Motilal Oswal Alternates, Sundaram Asset Management, Nisus Finance Group, ASK Property fund and DMI Alternatives, have set up realty-focused funds.