Wealthy investors in India are increasingly looking to real estate and logistics for better returns after two years of poor stock market performance. At least six new investment vehicles launched this year aim to raise over $1.3 billion for real estate and infrastructure projects, according to reports from Livemint and Business Times. This trend is different from global investors who have favored stocks benefiting from the artificial intelligence boom.
Key Details
Nuvama Wealth Management, which manages $39 billion in assets, has raised about $420 million for a commercial real estate fund with Cushman & Wakefield. The firm's CEO, Ashish Kehair, noted a major shift towards private credit and cash-flow generating assets, including real estate investment trusts (REITs) and logistics investments. "There is a shift towards private credit and cash-flow generating assets," Kehair said.
Background
This shift reflects a search for steadier returns. The benchmark Nifty 50 index has yielded only 7% over the past two years, while the S&P 500 index returned 29%. Additionally, money raised by Alternative Investment Funds in India nearly doubled to $64.5 billion from March 2024 to June 2026. Family offices and asset managers are increasingly interested in funds that target infrastructure, energy, and property investments.
Related coverage: AI Sell-Off Drives Indian Investors to Emerging Markets, Investors Pivot to Indian, Chinese Stocks After US Midterms.
This move towards real estate could affect the Indian stock market by pulling capital away from equities, especially in sectors that have struggled. The focus on real assets may lead to higher demand for real estate and logistics investments, which could boost those sectors.
Watch for more developments in the real estate sector as more funds are launched and investor sentiment changes in response to stock market trends.