Leading through change: A strategic vision for the future of Indian real estate

Written by Isabella Toledo

At the recent GRI Institute Roundtable, “Leading through Change: A Strategic Vision for Indian Real Estate,” co-hosted by Godrej Properties, selected decision-makers gathered in Mumbai for an exclusive conversation with Mr. Gaurav Pandey, MD & CEO of Godrej Properties.

Along with unpacking a career full of insights from the Godrej CEO, industry leaders also explored critical issues, including market penetration, regulatory challenges, technology adoption, and funding structures, as developers extend their reach beyond core metro areas.

Fireside chat with Gaurav Pandey

Highlighting the maturation of the residential industry, Guarav noted its transformation into a professional, research-driven sector valued at over USD 650 billion, with significant growth in both volume and pricing across India's major cities.

He also discussed the cyclical nature of the real estate market, stressing the importance of strategic planning and strong financial discipline, particularly in managing debt and equity ratios, to sustain growth during downturns and competitive pressures.

Gaurav further emphasised the critical role of company culture and talent development, pointing out that the increasing complexity of real estate projects requires a skilled workforce, especially engineers and professionals.

Looking ahead, he identified artificial intelligence (AI) as a transformative force for the industry, particularly in automating design and construction processes, with AI-driven systems already cutting design time, fostering innovation, and improving operational efficiency.
 
Smart expansion strategies

Industry leaders stressed that while core markets such as Delhi-NCR, Mumbai, Bangalore, and Pune remain central to their strategies, there is also a notable shift towards exploring new and emerging locations.

A rising trend is the adoption of a "plotted market" strategy, where developers first target less competitive, peripheral areas to build brand trust and gain valuable insights into local demand and regulatory challenges before expanding into more established zones.

These regions present lower entry barriers, offering developers the opportunity to establish a solid foundation before moving into more mature, high-demand areas, ensuring a manageable pace of expansion while mitigating the risk of oversaturation.

Once the market is validated, players can proceed with integrated, mixed-use projects that meet both residential and commercial demands, laying the groundwork for future urban expansion - a sustainable growth strategy that lowers risk, ensuring long-term benefits without stretching resources too thin.

The affordable housing challenge

With a large and growing population, the demand for affordable housing is immense, yet supply-side constraints, such as high land prices, regulatory bottlenecks, and lengthy approval processes continue to hinder growth.

Leaders stressed the urgent need for reforms to streamline land acquisition, and simplify the complexities surrounding such projects, noting that initiatives such as the Pradhan Mantri Awas Yojana (PMAY) must be complemented to drive meaningful progress.

Experts emphasised that developing affordable housing at scale will require increased public-private collaboration, with technology, including construction automation, and innovative building techniques playing main roles in improving viability.
 
Tech-driven development

From automating design processes to optimising construction schedules and improving space management, AI is transforming the execution of real estate projects, particularly in the management of large-scale developments.

Developers are now using AI-powered tools to track space utilisation, automate routine tasks, and even predict future maintenance needs based on real-time data - which can reduce costs, accelerate timelines, and enable developers to deliver high-quality projects more efficiently.

Another significant advantage of technology is its ability to create more responsive and adaptive workspaces, with developers using AI to reconfigure office layouts and manage resources in real time, aligning environments with both business needs and employee preferences.

Alternative asset classes

Warehousing, logistics, and data centres are emerging as key growth sectors, driven by the rapid expansion of e-commerce and the increasing need for digital infrastructure. 

The rise of Global Capability Centres (GCCs) is also contributing to this shift, with these centres evolving into innovation hubs that attract senior talent and drive cutting-edge business strategies.

Data centres, in particular, are viewed as critical for the country’s economy, as more companies embrace digital transformation. With demand expected to surge, developers are now focusing on building facilities that meet the growing need for Grade-A spaces.
 
Capital allocation trends

While global capital continues to chase yield, domestic investors are playing an increasingly vital role in funding real estate projects, particularly with the rise of Real Estate Investment Trusts (REITs). 

As REITs expand their focus beyond commercial assets, local partnerships are proving essential for navigating regulatory challenges and entering new markets. These collaborations are not only crucial for market expansion but also provide a buffer against local uncertainties, helping developers align with regional demands.

In this context, leaders emphasised the importance of disciplined capital allocation. With the market still prone to cycles of boom and bust, developers must strike a careful balance between risk and growth, ensuring financial flexibility to weather downturns while capitalising on emerging opportunities.