HNIs Reshape Real Estate Investing Through AIFs in FY25

HNIs Are Redefining Real Estate Investment via AIFs in India

India’s high-net-worth individuals (HNIs), ultra-HNIs, and family offices are undergoing a paradigm shift in how they invest in real estate. Gone are the days of traditional brick-and-mortar purchases and direct property dealings. Instead, institutional structures such as Alternative Investment Funds (AIFs) have emerged as the new gateway, offering transparency, efficiency, and access to premium assets.

As of FY2025, over ₹74,000 crore has been routed into real estate through this regulated mechanism, according to Ramandeep Sassi, Chief Business Officer – Fund Management at Welspun One, a leading real estate investment platform.

The AIF Advantage: Passive, Professional, Profitable

Why are HNIs gravitating towards AIFs?

AIFs provide access to curated real estate opportunities, professionally managed by experienced fund managers. The model simplifies ownership, enhances governance, ensures regulatory compliance, and delivers yield-generating assets—without the day-to-day burden of property management.

“For many HNIs, this is the first time they’re witnessing institutional-grade real estate as a passive investment with comparable returns,” says Sassi.

And the attraction is clear. AIFs now enable investments from ticket sizes of ₹1 crore to upwards of ₹500 crore, catering to both individual HNIs and large family offices looking for tailored exposure across diversified asset classes.

Warehousing: A Star Performer

Among all themes, warehousing infrastructure stands as the most compelling.

Driven by the meteoric rise in e-commerce, quick-commerce, and resilient demand from sectors like automotive and pharmaceuticals, warehousing has evolved from a speculative land play to a core, income-generating asset class.

This surge is not limited to traditional parks alone. There's growing excitement around urban logistics hubs and in-city warehouses, which are gaining traction as a distinct, high-performing asset category.

Learn more about logistics trends reshaping real estate.

The Rise of New-Age Real Estate Themes

HNIs aren’t just stopping at warehouses. Their appetite is expanding into newer, long-term themes such as:

• Grade-A Commercial Spaces: Rent-yielding office assets with blue-chip tenants
• Infrastructure Assets: Including renewables, highways, and transmission lines
• Greenfield Warehousing AIFs: Tapping into development-led growth
• Data Centres: Aligned with India's growing digital infrastructure
• Residential Development: Early shifts seen in this evolving category

Data centres, in particular, have emerged as a sweet spot—offering long-term leases, high occupancy rates, and scalability driven by India’s digital-first growth story.

Why data centres are India’s next big real estate theme.

From Physical Holdings to Strategic Allocations

According to Sassi, family offices and wealth desks are becoming more strategic in their approach. While they consolidate legacy holdings, they're now actively financialising their real estate portfolios by opting for structured investments like AIFs.

Wealth managers, too, are collaborating with fund managers to align products with diverse risk-reward profiles.

“The next 2–3 years will see an acceleration of this trend,” says Sassi, “as more investors look to combine income-generating assets with development-led upside in thoughtfully structured offerings.”

AIFs: The Future of Real Estate Investing

The fundamental appeal of AIFs lies in their ability to blend the tangible security of real estate with a sophisticated, professionally managed investment structure. As awareness increases and success stories multiply, more HNIs and family offices are expected to take the plunge.

While direct property investment requires effort in land due diligence, tenant handling, and compliance, AIFs offer a dematerialized route—complete with robust oversight and transparent reporting.