India’s ultra-high-net-worth individuals (UHNIs) are refining their investment approach toward commercial real estate (CRE). The reassessment currently underway is a strategic recalibration of how capital is deployed, into what it is deployed and the role commercial real estate plays in a future-proofed portfolio./p>
Several macro and structural trends are fueling this shift:
Together, these forces represent a fundamental repositioning. CRE is no longer viewed in isolation as a high-yielding asset. It is now being evaluated as a strategic wealth tool, one that must perform across cycles, align with ESG norms and support liquidity and succession planning. The reassessment is not about exiting the market. It is about upgrading the playbook. Let’s delve into each aspect shaping this transition.
The first visible shift is a clear move from aggressive expansion to strategic consolidation. Earlier, UHNIs were key participants in land aggregation and greenfield office investments. Today, they are narrowing their focus to high-performing, fully built, income-yielding Grade A assets.
This reflects not just a change in risk appetite, but in investment philosophy. Asset quality, tenant profile, and compliance readiness have taken precedence over speculative upside.
This recalibration is supported by market data. Capital deployment into Indian real estate reached USD 11.4 billion in 2024, a 54% year-over-year growth, largely driven by completed assets and well-located land acquisitions (CBRE).
The new mandate is clear: fewer assets, stronger fundamentals and consistent rental performance. The next layer of this shift involves how UHNIs prefer to own these assets.
Alongside asset preference, the structure of ownership itself is transforming. UHNIs are moving away from direct, individually held assets or co-invested fragments in family partnerships. Instead, they are leaning into institutional models like REITs, Alternative Investment Funds (AIFs), and managed discretionary platforms.
These structures offer several advantages:
A prime example of this evolution is the scale at which REITs are being capitalized. Embassy Office Parks REIT, India’s largest, has announced plans to raise USD 400 million to meet growing demand for institutional-grade office assets (Reuters).
For UHNIs, these platforms deliver transparency, reduced administrative burden and exposure to well-performing assets without operational complexity. But ownership models are only one part of the equation. Asset performance is increasingly being driven by sustainability metrics.
Environmental, Social, and Governance (ESG) factors have moved from being soft preferences to hard investment filters. Whether driven by SEBI’s Business Responsibility and Sustainability Reporting (BRSR) norms or global LP mandates, ESG now shapes portfolio construction.
As of end-2024, 66% of Grade A office stock across India’s top six cities was green-certified, amounting to 503 million sq ft. More notably, over 75% of all leasing in 2024 took place in green-certified buildings, underscoring a structural market shift, not a passing trend (Colliers).
This growing preference for sustainable assets is not confined to new supply. Developers are actively retrofitting older buildings to improve ESG scores, unlocking a market opportunity worth over INR 425 billion (Colliers). This ESG integration is not only about compliance. It is now a strategic lever for:
Air quality monitoring, energy efficiency systems, waste reduction, and wellness infrastructure are now prerequisites for future-ready CRE portfolios. This reorientation towards quality and compliance also aligns with a deeper concern: preparing assets for smooth intergenerational transfer.
A critical driver behind the reassessment is the growing need for estate readiness and wealth continuity. UHNIs are increasingly viewing CRE through the lens of transferability, ease of governance, and long-term asset hygiene.
Family offices are prioritizing:
This is particularly relevant as the first generation of Indian wealth transitions to the next. Structures that offer transparency, liquidity, and minimal transfer friction are being favored over legacy holdings that are operationally burdensome or non-compliant. CRE is no longer just a source of income. It is now also a critical estate planning tool.
As India’s commercial real estate evolves, UHNIs are sharpening their lens, filtering for transparency, yield resilience and ESG alignment. The shift is not about cutting exposure, but about elevating the quality of exposure.
At SQUAREA, we specialize in helping investors navigate this next cycle. From REIT entry strategies to pre-leased Grade A assets and co-investment platforms, our advisory ensures alignment with your long-term capital goals and risk appetite.
To learn more or build your next strategic CRE allocation, connect with us at hello@squarea.io or call +91 90 9641 9641.
End-use buyers face a strategic decision — whether to acquire a ready-to-move-in residence for immediate occupancy or to allocate capital towards an under-construction asset. While the latter has historically been associated with higher delivery risk, the landscape in 2025 is notably different. Projects are now governed by RERA-backed regulatory oversight, stringent escrow compliance, and developer accountability.
This evolving ecosystem has redefined the relevance of under-construction inventory, particularly for Indian HNIs and UHNIs seeking customisation, capital efficiency, and future-ready design. As these dynamics continue to shape the market, it becomes essential to assess the strategic value this segment can offer. To understand the continued relevance of this segment, let’s explore the key benefits of under-construction property in 2025 for end-users.
In 2025, the question of "should I buy an under-construction flat" is best answered by examining its strategic merits. For end-users in the luxury segment, these properties offer distinct advantages when backed by due diligence and credible delivery.
1. Price Advantage at Entry
Under-construction homes are priced lower than their ready-to-move counterparts in the same location. In high-demand corridors such as Pune’s western suburbs or Gurgaon’s Golf Course Extension Road, the price differential can range from 10% to 30%. (Sobha)
This lower base cost not only enhances affordability but also improves long-term capital appreciation, especially in projects completing within the next 18–36 months.
2. Capital Appreciation Potential
For buyers not in need of immediate possession, entering early in a project cycle enables higher asset appreciation by the time of completion. This is particularly relevant in micro-markets undergoing infrastructure upgrades, such as Mumbai’s New Cuffe Parade or Pune’s Kharadi.
Additionally, developers often increase pricing in tranches as construction progresses, allowing early buyers to benefit from structured value escalation.
3. Flexible Payment Structure
Unlike ready properties, under-construction homes offer construction-linked payment plans. This phased disbursement allows buyers to align payments with liquidity events or staggered capital deployment, thereby reducing financing pressure.
It also enables financial planning that matches project milestones with investment goals, particularly useful for buyers funding the purchase through asset reallocation or staggered divestments.
Developers of high-end projects typically allow limited customisation in flooring, layout, electricals, or interior finishes if the unit is booked in early phases. This flexibility is especially valuable for end-users seeking to tailor a home to their lifestyle or future requirements.
Completed units, on the other hand, may require costly retrofits or compromise on layout, which is non-ideal for long-term habitation.
Under-construction homes often incorporate newer materials, design efficiencies, and technology integrations. These include better energy ratings, improved ventilation systems, smart home readiness, and modern security systems.
Buyers entering these projects secure residences that are aligned with the latest in home technology, both in terms of functionality and long-term market relevance.
Buyers of under-construction projects generally have access to a wider range of unit configurations, views, and floor elevations. This enables selection that aligns with long-term value, whether in terms of Vastu compliance, sunlight exposure, or exclusivity of position.
This flexibility diminishes significantly once the project is completed and only residual inventory remains.
Under-construction properties offer notable tax benefits for end-use buyers financing their purchase through home loans. End-use buyers of under-construction homes can claim up to ₹2 lakh per annum on interest under Section 24(b) and ₹1.5 lakh on principal repayment under Section 80C after possession. An additional deduction of ₹50,000 under Section 80EE or ₹1.5 lakh under Section 80EEA may also apply for eligible first-time homebuyers, depending on loan sanction timelines and conditions. (ClearTax) Given these fiscal advantages, along with the structural and design benefits, it is worth assessing how under-construction property advantages for end-users compare against ready-to-move-in properties across key decision parameters.
To assist end-use buyers in evaluating both options, here is a comparison of under-construction vs ready-to-move homes in India:
| Parameter | Under-Construction Homes | Ready-to-Move Homes |
|---|---|---|
| Price Point | Lower entry price | Premium priced |
| Customisation | High (during early phases) | Limited or costly |
| Payment Structure | Staggered, construction-linked | Lump-sum or full at possession |
| Availability | Wide unit choice | Limited inventory |
| Capital Appreciation | High potential pre-possession | Lower due to near-peak pricing |
| Immediate Use | No | Yes |
Under-construction homes are no longer speculative ventures. When selected with diligence, they present a compelling mix of strategic location, modern design, and financial advantage.
For buyers exploring this segment, a home buying guide for under-construction projects should start with three pillars: regulatory compliance, developer track record, and capital alignment. These form the foundation for a confident, forward-looking investment.
At SQUAREA, we offer curated access to India’s premium real estate opportunities, selected for their financial, legal, and execution credibility. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.
The Real Estate (Regulation and Development) Act, or RERA, has reshaped the Indian real estate market by embedding accountability, transparency, and delivery discipline into every transaction. For high-value buyers, particularly Indian HNIs and UHNIs, this has introduced a long-overdue layer of legal clarity in a space once defined by informal practices and opaque timelines.
These developments underscore the growing importance of understanding the RERA timeline for homebuyers in India, especially for those allocating capital into premium or under-construction assets. Whether you're investing in a branded residence or a high-rise penthouse, understanding how RERA governs your transaction is fundamental to protecting value, timelines, and long-term investment integrity.
To fully appreciate these safeguards, it is essential to first understand the regulatory framework that underpins them.
RERA, enacted in 2016 and enforced from May 2017, established a regulatory framework across Indian states to promote transparency and protect property buyers (Bajaj Finserv). It mandates that developers:
Most importantly, homebuyer rights under RERA include timely possession, compensation for delays, and the right to legal recourse, all of which collectively shift the balance of power from developers to buyers. To make the most of these safeguards, it's essential to understand how the RERA framework maps across the moment of booking to final possession.
The journey from booking a property to receiving possession has become far more structured post-RERA. For premium real estate buyers, understanding these milestones is critical not only for timely delivery but also for enforcing contractual obligations.
Every RERA-compliant project must be registered with the respective State RERA portal. Buyers should:
This establishes the legal and financial framework that protects buyers in case of delay or dispute.
Developers are required to publish quarterly progress reports on the RERA portal. These reports cover:
Buyers are advised to track these updates closely. A lack of disclosure or inconsistent updates can be an early warning of execution issues.
Before possession, developers must obtain the Occupancy Certificate (OC) and upload the Architect’s Completion Certificate (Form 4) to the portal. Homebuyers should:
Only once these are confirmed should the final payment and registration take place.
If possession is not delivered by the declared date, the buyer has the right to RERA possession delay compensation under Section 18. This includes:
Recent tribunal decisions in markets like Bengaluru and Delhi NCR have reinforced that these provisions are far from symbolic. Homebuyers facing prolonged delays have been given substantial compensation, setting a clear precedent for accountability under RERA.
Buyers can initiate formal complaints via their state’s RERA portal. The process typically involves:
Penalties can include fines, interest payments, or cancellation orders. Proactive documentation and prompt filing significantly increase the chances of favourable outcomes.
For high-value investors, however, legal recourse is only one part of the equation. The real advantage lies in anticipating risks early and structuring the investment to avoid such pitfalls altogether.
Navigating the booking-to-possession process in real estate for luxury and ultra-luxury properties requires a sharper lens. As a homebuyer or investor, you should:
By aligning each stage of the transaction with the mandated steps in home buying under RERA, homebuyers can ensure regulatory compliance, minimise execution risk, and safeguard capital across the lifecycle of the asset.
At SQUAREA, we guide clients through the full spectrum of compliance, from validating a project’s RERA timeline to ensuring documentation is legally sound. To explore opportunities that meet these standards, write to us at hello@squarea.io or call +91 90 9641 9641.
India’s real estate sector is no longer just resilient; it is outperforming. In 2024, institutional investments reached a record USD 8.9 billion, up 51% from the previous year. Of this, 45% went into residential and 28% into office assets, underscoring a clear shift toward long-term real estate allocation (JLL). Meanwhile, premium housing—homes priced above ₹10 million—witnessed a 10% year-on-year growth in Q1 2025, reflecting end-user confidence (JLL). This momentum is backed by solid fundamentals: demand from affluent buyers, foreign institutional flows, and favourable rental dynamics.
For Indian HNIs and UHNIs, the opportunity is clear—but so is the challenge. In this dynamic environment, simply owning multiple properties no longer qualifies as strategy. In today’s market, performance comes from precision. It’s time to build with intent. This is where a balanced property investment plan becomes not just ideal, but essential.
In 2025, a real estate portfolio cannot be one-dimensional. Capital must work across different asset types—residential, commercial, listed REITs, and alternates—each serving a defined role.
This is where a structured real estate portfolio strategy in India 2025 becomes indispensable. Diversification reduces exposure to cyclical risks and aligns real estate with your broader capital strategy—preservation, income, or intergenerational growth.
To build that level of resilience, it is essential to understand the key levers that drive returns across property types.
Truly diversified real estate investments should blend growth, yield, and optionality. Each of the following asset types plays a distinct role in building a resilient portfolio.
Premium residential housing continues to show strong absorption, especially in top cities like Mumbai, Pune, Delhi NCR, and Bengaluru. Prices are expected to rise 6.5% in 2025 and 7.5% in 2026, after a 4.3% increase last year (The Economic Times). For HNIs and UHNIs, such properties are not only lifestyle assets but also strategic capital anchors.
Investing in a marquee branded residence or a centrally located luxury property can deliver long-term appreciation while enhancing the overall strength and identity of one’s portfolio.
Office assets are regaining investor interest with strong leasing momentum. In Q1 2025, India’s top 8 cities recorded 20.3 million sq. ft. in gross leasing volume, with Bengaluru leading at 24%, followed by Mumbai and Pune (Cushman & Wakefield). Demand from Global Capability Centres (GCCs) and tech-driven firms continues to drive occupier interest.
Capital allocation here should focus on income-generating Grade-A office floors or institutional business parks located in supply-constrained micro-markets with strong tenant profiles.
India’s four listed REITs collectively distributed ₹1,553 crore in Q4 FY25, a 13% increase year-on-year (Business Standard). With access to institutional-grade office assets, REITs offer transparency, stable cash flows, and lower entry barriers.
For investors seeking diversification with liquidity, allocating 10–15% of capital to REITs can provide exposure to managed real estate portfolios without the operational burden of direct ownership.
HNIs are increasingly exploring second homes in destinations such as Alibaug, Goa, and the Nilgiris, driven by lifestyle value and hybrid living trends. Plotted land in urban expansion corridors continues to offer long-term appreciation, while fractional ownership platforms are enabling entry into high-value hospitality and commercial assets through lower ticket sizes.
These formats are well-suited for investors seeking portfolio variety, early-stage capital deployment, or assets that align with personal lifestyle preferences.
The best real estate asset mix in 2025 is not defined by fixed percentages. It’s shaped by your capital objectives, life stage, and risk appetite. Younger investors may prioritise long-term appreciation-led assets such as premium homes or land parcels, while those nearing retirement might lean towards income-generating properties and listed REITs for liquidity and stability.
Building with intent begins with selectivity and ends with discipline. Here's how to build a real estate portfolio in India:
With rising asset prices, record institutional activity, and growing product diversity, Indian real estate demands a more informed, balanced approach. However, navigating this landscape can feel overwhelming.
This is where expert guidance makes all the difference. From identifying fit-for-purpose assets to managing legal diligence and long-term rebalancing, the right advisory partner ensures your portfolio is not just built, but built to endure
At SQUAREA, we offer curated access to India's most prestigious commercial and residential properties. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.