logo
India stands out with its ability to deliver stability, large-scale real estate growth, says Gustavo Favaron

India stands out with its ability to deliver stability, large-scale real estate growth, says Gustavo Favaron

Economic Times6 days ago
Synopsis
India is emerging as a prime global investment hub due to its stable growth and maturing real estate sector, attracting interest from private equity, pension, and sovereign wealth funds. While established players are present, many are in 'study mode,' awaiting global clarity. Commercial real estate, especially office and warehousing, remains preferred, with residential gaining traction.
Gustavo Favaron, CEO & Managing Partner of GRI Club and Co-founder of 8 Capital India is rapidly becoming a core global investment destination, bolstered by the growing maturity of its real estate developers and the increasing appetite from institutional capital. In a volatile global environment, the country stands out with its ability to deliver large-scale real estate developments and a stable growth outlook. In conversation with Sobia Khan of The Economic Times, Gustavo Favaron, CEO & Managing Partner of GRI Institute and Co-founder of 8 Capital, talks about why India is attracting strategic attention, what is still holding back significant capital inflows, and how asset classes like commercial, residential, and warehousing are shaping up. He also discusses the growing influence of Non-Resident Indians (NRIs) in the country's real estate landscape.
Global capital flows are influenced by geopolitical and economic uncertainty—wars, inflation, high interest rates, and general instability in traditional markets like the US, UK, and Europe. Amid this chaos, India is seen as a relatively stable and fast-growing alternative. The macro indicators—demographics, policy stability, and economic momentum—are compelling. While established players like Blackstone, GIC, Brookfield, and CPPIB are already active, we are not seeing a high volume of new entrants yet. Many funds are in 'study mode', waiting for clarity globally before making moves. But I firmly believe India is the next big destination for real estate capital.We are seeing interest from private equity, pension funds, and sovereign wealth funds—particularly those with a five- to ten-year investment horizon. They like India because of the scale and relative geopolitical neutrality. On asset classes, commercial real estate remains top preference, especially office space and increasingly warehousing. However, residential is emerging too—Blackstone's recent move into residential is a signal. As developers get more mature and organized, international capital will flow more comfortably into residential.Bangalore, Mumbai, and Delhi NCR top the investment charts, driven by strong demand, infrastructure upgrades, and maturing commercial ecosystems. Hyderabad and Pune also rank high, reflecting their emergence as IT and manufacturing hubs. Investors are also eyeing Tier-2 cities like Ahmedabad and Indore, anticipating decentralization and urban sprawl to create the next wave of investable real estate.First, mature markets still offer distressed opportunities—why would someone travel to Mumbai when they can buy undervalued assets in London? Second, the pace of decision-making— domestic funds in India move faster and adapt quicker. International funds often lose deals due to longer internal processes. Finally, global investors are adjusting to operating in high-interest, inflation-driven environments—something Indian players are already used to. But once these pockets of distressed supply in developed markets dry up, more capital will head India's way. The opportunity is just beginning.India currently stands out and is seen as more stable and predictable. The country isn't entangled in international conflicts, and the demographics are unmatched. China is shrinking, so is Europe, and the US is also slowing. India remains one of the few large markets with real growth potential. That makes it very attractive to long-term, patient capital. I do not think we are in bubble territory. Yes, residential prices—especially in the high-end segment—have grown sharply, but it was more of an adjustment than a spike. Deep-pocketed buyers still exist, and they will invest in the assets. The market will stabilize, but we are far from saturation. India's overall real estate market is maturing. The quality is better, developers are more professional, and compared to other countries, approvals and bureaucracy are equally complex—so India isn't an outlier. You need to zoom out and look at the cycle holistically and right now, the trajectory is upward.
Absolutely. NRIs are increasingly investing back in India—either through REITs or direct real estate. Many Indians living abroad are uncertain about the future in places like the UK or US and see opportunity and growth here in India. This is not a short-term trend—it is accelerating. From the outside, India's rise is often more visible than from within. The momentum is real, and NRIs want to be part of it.
Office space remains the most sought-after asset class, followed by residential and plotted developments. This trend aligns with the post-pandemic shift toward high-quality, tech-integrated office ecosystems and a growing urban middle class seeking residential ownership. Global investors are increasingly interested in Indian assets with stable, scalable returns, especially in Grade-A office and housing portfolios. Data centers and warehouses also show emerging strength, reflecting India's digital and e-commerce surge. These preferences suggest a recalibration towards long-term, income-generating assets in Tier-1 cities.
The top concern for developers is regulatory inefficiency—delays in approval processes as the most pressing challenge, followed by rising construction costs and limited access to financing . Yet, developers and investors alike are adapting by focusing on compliance, pre-leased assets, and risk-sharing models. Addressing regulatory bottlenecks could unlock significant capital inflows and fast-track India's real estate maturation.
( Originally published on Jul 14, 2025 )
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump administration to release $5.5 billion in school funds for teachers, migrant children, and ESL programs
Trump administration to release $5.5 billion in school funds for teachers, migrant children, and ESL programs

Time of India

time4 hours ago

  • Time of India

Trump administration to release $5.5 billion in school funds for teachers, migrant children, and ESL programs

The US Department of Education has announced the release of $5.5 billion in federal funding for K–12 education programs across the country. Approved by Congress earlier this year, the funds will begin reaching states next week and are earmarked for teacher recruitment, support for migrant students, English as a Second Language (ESL) instruction, and a range of academic enrichment programs. Tired of too many ads? go ad free now The funding, distributed through established federal formulas, represents a major annual investment in public school systems that serve millions of vulnerable and underserved students. It is expected to directly impact classrooms, especially in districts facing teacher shortages and increasing linguistic and cultural diversity. What the $5.5 billion will support According to the Education Department, the funds will be directed toward several high-priority areas: Teacher recruitment and training A significant portion of the funds will go toward hiring new teachers and providing professional development for current educators. Many public school districts across the US continue to struggle with staffing gaps, particularly in science, math, special education, and bilingual education. The funding is intended to strengthen the teacher pipeline, especially in rural and urban districts where shortages are most acute. Programs for migrant farmworker children Many schools in agricultural regions serve children whose families move seasonally for work. These students often face disruptions in schooling and limited access to consistent academic support. A dedicated stream of funding will go toward stabilizing education for migrant students, offering tutoring, mobile learning resources, and language support. English as a Second Language (ESL) and multilingual learning With over 5 million English learners enrolled in US public schools, the funding will bolster ESL programs that help students gain English proficiency while keeping pace with core academic subjects. Funds will support specialized instructors, instructional materials, and family engagement initiatives to help non-English-speaking parents stay involved in their children's education. Tired of too many ads? go ad free now Academic enrichment, after-school, and summer programs Additional funding will support afterschool tutoring, summer learning academies, and arts and STEM enrichment programs, especially in high-poverty districts. These efforts aim to reduce learning gaps exacerbated by the pandemic and support students who require additional academic attention. Federal guidance and administrative oversight A senior administration official noted that the Department of Education has issued internal guidance for the disbursement of the funds and that 'appropriate guardrails' will be in place to ensure compliance with federal law. While the nature of these guardrails has not been specified publicly, the Department emphasized a focus on 'results-oriented spending.' States and school districts will have some flexibility in how they allocate the funds locally, though spending must align with the authorized uses under federal education law, particularly under the Elementary and Secondary Education Act (ESEA). Why this funding matters now The $5.5 billion release comes as US public schools face rising operational costs, ongoing educator attrition, and growing student needs—particularly among English learners, low-income families, and transient populations. In several states, superintendents have cited urgency in accessing federal support to maintain or expand services critical to student success. For example, some school systems rely on these funds to hire bilingual aides, offer after-school meals, and run weekend learning programs for children of seasonal workers. Broader implications for education policy This funding release also comes amid a national conversation around the role of federal oversight in education, especially on topics such as curriculum content, student identity, and local governance. While the administration has emphasized accountability in spending, education advocates warn against restricting federal aid based on ideology or policy disagreements. The focus on ESL and migrant education reflects a growing recognition of the changing demographics in US schools, and the need to equip all students with equal opportunities to succeed. What's next for states and districts With the release order in place, state education departments are expected to begin disbursing funds to local districts by early August. Schools will use existing application and reporting frameworks to request and account for the funds. Education leaders nationwide have welcomed the announcement, noting that these programs often serve as a lifeline for high-need students, especially in states with large immigrant or agricultural populations. As the new academic year approaches, the $5.5 billion will be a critical boost to public school systems navigating post-pandemic recovery, shifting cultural debates, and mounting student support needs. TOI Education is on WhatsApp now. Follow us .

EU sanctions Indian arm of UAE-based shipping company
EU sanctions Indian arm of UAE-based shipping company

Economic Times

time5 hours ago

  • Economic Times

EU sanctions Indian arm of UAE-based shipping company

New Delhi: Intershipping Services Hub Private Ltd, the Indian branch of the United Arab Emirates (UAE)-based entity, has been sanctioned by the European Union (EU). Captain Abhinav Kamal, the Indian-origin captain of crude oil tanker Argent also faces sanctions, the first and the only Indian to be sanctioned by the EU in connection with the Russia-Ukraine conflict, according to sector watchers. The company is under fire for providing cover to ships engaged in trade with Russian sanctions are not extraterritorial and only apply to EU citizens, territory and companies. The Indian government too maintains it does not subscribe to any unilateral sanction measures."This means the assets that Intershipping Services LLC holds in Europe will be frozen and European citizens and companies cannot make money available to it, hence cannot do business," an EU official told ET on condition of anonymity. Since the sanctions do not apply to any non-EU entities doing business with Intershipping Services Hub, the company can court non-EU suitors, said the people cited earlier. However, Kamal may find the going tough since the global maritime industry has vast linkages with the EU, they said. Now, Kamal cannot board or provide services to any of these EU associated vessels. The bloc has accused Kamal of providing material, technical or financial support to the operations of a vessel that transports Russia-linked crude oil or petroleum products.

EU sanctions Indian arm of UAE-based shipping company
EU sanctions Indian arm of UAE-based shipping company

Time of India

time5 hours ago

  • Time of India

EU sanctions Indian arm of UAE-based shipping company

Intershipping Services Hub Private Ltd , the Indian branch of the United Arab Emirates (UAE)-based entity, has been sanctioned by the European Union (EU). Captain Abhinav Kamal , the Indian-origin captain of crude oil tanker Argent also faces sanctions, the first and the only Indian to be sanctioned by the EU in connection with the Russia-Ukraine conflict , according to sector watchers. The company is under fire for providing cover to ships engaged in trade with Russian entities . The sanctions are not extraterritorial and only apply to EU citizens, territory and companies. The Indian government too maintains it does not subscribe to any unilateral sanction measures. "This means the assets that Intershipping Services LLC holds in Europe will be frozen and European citizens and companies cannot make money available to it, hence cannot do business," an EU official told ET on condition of anonymity. Since the sanctions do not apply to any non-EU entities doing business with Intershipping Services Hub, the company can court non-EU suitors, said the people cited earlier. However, Kamal may find the going tough since the global maritime industry has vast linkages with the EU, they said. Now, Kamal cannot board or provide services to any of these EU associated vessels. The bloc has accused Kamal of providing material, technical or financial support to the operations of a vessel that transports Russia-linked crude oil or petroleum products.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store