As family offices and private wealth desks mature, the allocation trend is moving away from opportunistic, one-size-fits-all bets toward curated structures that offer transparency, stability, and institutional-grade management.
Residential Development & Commercial Rentals Lead the Pack
When it comes to where the money is flowing, Ramashrya Yadav, Founder & CEO of Integrow AMC, says that residential development—especially via structured credit—is leading the way. “Right now, residential development with strong cash flow underwriting is hot, especially via structured credit. People want short- to mid-term cycles and visibility,” he explains.He adds that yield-generating commercial assets are also attracting strong interest, particularly from investors seeking capital multiplication without assuming development risks. “Good tenancy, stable income, and clean structuring are making office and retail assets a bigger part of portfolio decisions. Warehousing has momentum, but it’s mostly led by institutional capital. Data centers are still early, and the track record isn’t deep yet. Basically, people want risk-managed growth more than blind bets,” says Yadav.
Echoing a similar trend, Shravan Sreenivasula, Head – Investment Solutions, Avendus Wealth Management, notes that, “We see increased interest in commercial and residential real estate and lesser in data centers, with participation now limited to institutional players.”
Meanwhile, Vinayak Magotra, part of the founding team at Centricity WealthTech, says the warehousing theme is gaining traction due to the boom in e-commerce logistics. “Warehousing (due to e-commerce growth in India) & High Quality (Grade-A) rental yielding assets remain the first preference. Data centers might see the next leg of growth,” he says.
Family Offices Get Smarter, More Tactical
The traditional approach of ‘buy-and-hold’ in real estate is being replaced by data-driven, actively monitored strategies. According to Yadav, “They’re getting smarter and more demanding. The old ‘buy and hold’ model is being replaced by ‘track and optimize.’ They want real reporting, portfolio visibility, and advisors who can show them risk, not just returns.”
He highlights a growing sophistication among family offices: “We’re seeing family offices actively rotate out of underperforming assets, question vintage holdings, and allocate to curated funds instead. Real estate is a part of strong portfolio strategy. And the ones who get that are already ahead.”
Sreenivasula believes real estate investments are increasingly tailored to investor needs: “Real estate strategies are becoming more nuanced; it is very much a case of horses for courses. This could mean bulk buying apartments, construction of hotels, commercial real estate or buying strata.” He adds that wealth desks will also evolve to support larger transactions, “likely to evolve to facilitate selling of residential and commercial real estate in bulk.”
A key development he foresees is the rise of pre-REIT structures via AIFs: “AIFs could play a key role in creating pre-REIT structures that investors can participate in.”
Magotra brings in the generational shift: “With new age wealth in India moving to the next generation or to young self-made entrepreneurs, we see a lot of growth potential in Digital Real Estate Assets, either through AIFs or direct exposure through REITs and InvITs.” He adds that this new wave of investments comes with structural advantages: “Most of these investments hold low litigation risks, professional institutional management, and more transparency.”
Conclusion
From structured credit in residential development to institutional-grade commercial assets and the emergence of digital real estate plays, India’s wealthy are no longer treating real estate as a passive investment.
With increasing demand for accountability, performance, and liquidity, AIFs and curated vehicles are fast becoming the go-to instruments for HNIs and family offices looking to stay ahead in a maturing real estate landscape.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
