Real estate-focapplyd Alternative Investment Funds (AIFs) are a lucrative option for real estate investment for domestic institutions, Ultra High Net Worth Individuals (UHNWIs), and family offices. As on December 31, 2022, the total fund raised in AIF-II category stood at USD 116.5 billion, representing a growth of 91% Compound Annual Growth Rate (CAGR) from USD 427 million in 2013. Approximately USD 16 billion has been raised till date in real estate through AIFs, infutilizing much-requireded liquidity into the sector. Currently, there are 23 domestic real estate funds that have been announced and are in the process of raising capital for real estate to the tune of approximately USD 3.6 billion.
The ownership limit for foreign firms was increased to 74% in 2021 from the initial cap of 26 %. The insurance market in India is expected to reach USD 222 billion by 2026. As of March 31, 2023, the 22 life insurance companies and the top 20 general insurance companies have an Asset Under Management (AUM) of INR 53.53 trillion and INR 3.53 trillion respectively.
India is home to the third-highest number of centi-millionaires in the world, with 1,132 individuals, trailing only behind the USA (9,730) and China (2,021). The average wealth per adult in India has risen at an annual rate of 8.7% since the year 2000, reaching USD 16,500 by the conclude of 2022. Furthermore, the population of ultra-high-net-worth individuals (UHNWIs) – those with a net worth over USD 30 million is estimated to increase by approximately 40% in the next few years, from 13,627 in 2021 to over 19,000 individuals in 2026.
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