(Nuvama)Nuvama’s Anshu Kapoor on India’s commercial real estate market dominance
The President and Head of Nuvama Group shares exclusive insights on key investment trends and the evolving Indian market
July 1, 2025Real Estate
Written by Isabella Toledo
India's commercial real estate market has become a dominant force. According to CBRE India’s Q1 2025 Office Figures, there was a 5% year-on-year increase in gross office leasing activity, with a remarkable 18 million square feet leased across the country’s top nine cities during the first quarter alone.
With the market’s growth, its leaders are continuously evolving their strategies to stay ahead. Anshu Kapoor, President and Head of Nuvama Group, participated in an exclusive interview with the GRI Institute, leveraging his 25+ years of experience to provide insights into India’s real estate investment trends, the growing demand for high-quality office spaces, as well as key opportunities and challenges amid global uncertainties.
Could you please give us a brief overview of Nuvama and your background in the industry?
Nuvama has been in the Indian market for over 25 years. The name itself has significance: "Nu" means new in English, and "Vama" in Sanskrit, our ancient language, means wealth and fortune. So, Nuvama symbolises a new approach to wealth and fortune. India has a young and rapidly growing population with significant wealth creation. We represent the ambition and aspirations of the new India.
Today, Nuvama is a large and respected player in the market. We manage and advise approximately USD 50 billion in client assets across three main business segments: wealth management, asset management, and capital markets. We have a presence in over 100 locations across India, with more than 65 offices in various cities, and we serve nearly a million customers.
We employ around 3,800 people across the country and also work with about 20,000 independent financial advisors, making our platform quite extensive and far-reaching. We are publicly listed on the Indian stock exchanges, and our market capitalisation is around USD 3 billion.
Regarding asset management. India’s equity markets are sizable, with a market cap of nearly USD 5 trillion. Our markets are well-regulated, and India has one of the largest options markets globally. The Indian mutual fund industry itself is about USD 800 billion, but there are other asset classes, such as commercial real estate, private equity, and infrastructure, that have grown very large over time. Traditionally, these asset classes were funded by foreign capital, primarily from sovereigns and foreign institutions.
In India, unlike other regions, domestic institutions have not participated as heavily in these asset classes. What we’re trying to do at Nuvama is bring access to these asset classes to our ultra-high-net-worth investors. We are active in private equity, public markets, and commercial real estate, and we plan to expand into other asset classes as well. The goal is to give our investors diversified opportunities across a range of sectors.
As for my background, I have been with the firm for 15 years and in the financial services industry for almost 28 years. I joined Nuvama to co-found our wealth management business. Before Nuvama, I worked with HSBC and Merrill Lynch and began my career at ICICI Bank, India’s second-largest private sector bank.
(Nuvama)
With the current global economic tensions and the recent RBI rate cuts, what do you view as the biggest opportunities and challenges in India's commercial real estate market today?
I believe this is a long-term, directional opportunity, but to understand it fully, you need to grasp the scale of the Indian market. India absorbs about 50% of Asia-Pacific's office space every year.
For context, India's absorption of office space last year was around 80 million square feet, which is half of the total absorbed across the Asia-Pacific region. So, in terms of commercial real estate, India is becoming a dominant market.
To put things into perspective, India’s economy is under USD 4 trillion, while China’s economy is around USD 16-17 trillion. Over the last five years, a city like Bangalore has absorbed as much office space as Shanghai. This illustrates the sheer scale and potential of the commercial real estate asset class in India. It’s a growth story that will unfold over the next 10, 15, or even 20 years.
Rate cuts or hikes won’t drastically change this direction. The market’s drivers are tied to the growth of the economy. Typically, if the economy grows by a certain percentage, the real estate sector grows 1.2 to 1.8 times that, depending on available drivers. India, as one of the world’s fastest-growing large economies, benefits from this growth.
Additionally, geopolitical tensions often work in India’s favour. The "China plus one" strategy is a perfect example. Global organisations are increasingly looking for stable, democratic locations, and India fits that need. The country also has abundant talent. With a population of 1.4 billion, India produces the world’s largest supply of engineers, coders, architects, and designers every year, and we are all English-speaking, which is a significant advantage.
These factors, along with government initiatives like Make in India and manufacturing support, help strengthen the real estate sector. Flex spaces, global capability centres, and the growth of Indian organisations are some of the key drivers. While there might be short-term disruptions, the long-term outlook for India’s commercial real estate market remains stable.
You mentioned GCCs and flex workspaces, which are significant trends in India right now. How is Nuvama adapting its investment strategy to capitalise on these trends?
We’ve established a real estate partnership with Cushman & Wakefield in India, with a 50-50 joint venture. Through this platform, we launched our first office fund, which is valued at around USD 450 million. It's a fairly large fund, which enables us to make investments nearing USD 1 billion, giving us access to a wide range of opportunities.
We’re exploring office spaces in Delhi, Chennai, Pune, and Bangalore, where we expect a combination of GCCs, flex workspaces, traditional office spaces, and potentially retail as well.
The way we plan to develop this platform is by initially focusing on office spaces, but we also see potential in funding greenfield developments and ultimately expanding into REITs. Our aim is to cover the full value chain of office space in India, ensuring we’re positioned for long-term growth.
(Unsplash)
What was the strategy behind creating this partnership with Cushman & Wakefield?
At Nuvama, we recognised that our clients have a growing need for commercial real estate investments. However, in India, there is a shortage of high-quality commercial real estate products available for investment.
While we have four REITs listed, these generally offer pre-tax returns of around 11-12% at best. For high-net-worth investors who were looking to invest in real estate on a pre-REIT basis, there were very few opportunities from reputed institutions like ours.
This gap in the market was the genesis of our idea to create an office space fund for our investors. Many of our high-net-worth clients either invested in REITs or bought small office buildings and strata properties, but they had mixed results. This highlighted the need for a more structured and reliable solution. The challenge then became how to execute it effectively.
Nuvama is not a real estate firm; we’re a financial services institution. And in a country like India, where state laws can vary significantly, the complexities of navigating both federal and state laws are considerable. On top of that, establishing strong relationships with developers on the ground and understanding tenant needs is crucial. The complexity is much higher when you’re looking at an asset worth at least USD 100 million, and you need a solid, scalable footprint.
To fill this gap, we partnered with a domain expert in real estate. Thankfully, Cushman & Wakefield has been operating in India for many years and has a strong presence with around 3,500 people on the ground. They are real estate specialists, while our strength lies in financial services. By combining our expertise, we were able to create a unique platform that brings together real estate knowledge and financial services to offer a tailored solution for investors.
We’ve been seeing a strong demand for ESG-compliant office spaces with advanced technology integration. How has this situation impacted the fund's strategy regarding ESG-compliant and tech-enabled spaces?
I think ESG is no longer optional, it’s a baseline requirement if you want to remain relevant. The future employer is looking for high-quality, energy-efficient, and sustainable green buildings; that’s the minimum expectation. But beyond that, the younger generation, which is shaping the future workforce, is demanding much more from office spaces. They’re looking for a sense of community and a workspace that enriches their lives.
In India, many people still face long commutes, so it's important to make the office environment as warm and welcoming as possible. It's not just about food and beverage options but about creating a holistic experience. The social and amenity aspects, such as spaces that enhance employee well-being, are now critical. When we assess buildings, ESG compliance is a must, but our preference is to ensure all these other boxes are ticked as well.
(Wikimedia Commons)
With high-net-worth and domestic investors, particularly family offices, playing a significant role in real estate investment in India, is Nuvama tailoring its strategies to cater to their preferences?
Yes, the fund has been tailored to meet the needs of family offices and ultra-high-net-worth individuals. One of the key aspects is the design of the product itself. For instance, globally, a commercial real estate product of this nature typically has a minimum term of 10 years. However, our product is designed for a 6-year term, as our investors prefer shorter lock-ins.
Additionally, our investors appreciate co-investment opportunities, where they can invest alongside the fund in specific projects. This flexibility is incorporated into the fund, allowing us to meet the preferences of family offices and ultra-high-net-worth individuals.
When we engage with family offices, they often have other investments or want to make additional investments in commercial real estate outside of the fund. Given our expertise, particularly through the combined platform with Cushman & Wakefield, we offer significant value-adds and exchange of ideas, which is something that sets us apart from others in the market.
The fund is also structured to cater to NRI (Non-Resident Indian) investors, even though we currently have fewer of them. However, this flexibility makes it accessible to this group, allowing them to participate in the same opportunities.
What is Nuvama's strategy moving forward, and what are your expectations for the market in the coming years?
We are very focused on the first fund, and we expect to fully raise USD 450 million by September-October of this year. We're already halfway through, so that should be completed on schedule. Over the next year, our focus will be on deploying the capital and making the right investments for this fund.
Beyond that, we are looking to build out the entire commercial real estate value chain, starting with the office real estate market. The next steps could involve launching a core fund, a development-oriented fund, and eventually a REIT. Additionally, we’re actively exploring opportunities in data centers and warehousing. Within the next one to two years, we expect to roll out at least one of these strategies.
Join the conversation with Anshu Kapoor and other top real estate financing industry leaders at GRI Funding Opportunities India 2025.
India's commercial real estate market has become a dominant force. According to CBRE India’s Q1 2025 Office Figures, there was a 5% year-on-year increase in gross office leasing activity, with a remarkable 18 million square feet leased across the country’s top nine cities during the first quarter alone.
With the market’s growth, its leaders are continuously evolving their strategies to stay ahead. Anshu Kapoor, President and Head of Nuvama Group, participated in an exclusive interview with the GRI Institute, leveraging his 25+ years of experience to provide insights into India’s real estate investment trends, the growing demand for high-quality office spaces, as well as key opportunities and challenges amid global uncertainties.
Could you please give us a brief overview of Nuvama and your background in the industry?
Nuvama has been in the Indian market for over 25 years. The name itself has significance: "Nu" means new in English, and "Vama" in Sanskrit, our ancient language, means wealth and fortune. So, Nuvama symbolises a new approach to wealth and fortune. India has a young and rapidly growing population with significant wealth creation. We represent the ambition and aspirations of the new India.
Today, Nuvama is a large and respected player in the market. We manage and advise approximately USD 50 billion in client assets across three main business segments: wealth management, asset management, and capital markets. We have a presence in over 100 locations across India, with more than 65 offices in various cities, and we serve nearly a million customers.
We employ around 3,800 people across the country and also work with about 20,000 independent financial advisors, making our platform quite extensive and far-reaching. We are publicly listed on the Indian stock exchanges, and our market capitalisation is around USD 3 billion.
Regarding asset management. India’s equity markets are sizable, with a market cap of nearly USD 5 trillion. Our markets are well-regulated, and India has one of the largest options markets globally. The Indian mutual fund industry itself is about USD 800 billion, but there are other asset classes, such as commercial real estate, private equity, and infrastructure, that have grown very large over time. Traditionally, these asset classes were funded by foreign capital, primarily from sovereigns and foreign institutions.
In India, unlike other regions, domestic institutions have not participated as heavily in these asset classes. What we’re trying to do at Nuvama is bring access to these asset classes to our ultra-high-net-worth investors. We are active in private equity, public markets, and commercial real estate, and we plan to expand into other asset classes as well. The goal is to give our investors diversified opportunities across a range of sectors.
As for my background, I have been with the firm for 15 years and in the financial services industry for almost 28 years. I joined Nuvama to co-found our wealth management business. Before Nuvama, I worked with HSBC and Merrill Lynch and began my career at ICICI Bank, India’s second-largest private sector bank.
(Nuvama)With the current global economic tensions and the recent RBI rate cuts, what do you view as the biggest opportunities and challenges in India's commercial real estate market today?
I believe this is a long-term, directional opportunity, but to understand it fully, you need to grasp the scale of the Indian market. India absorbs about 50% of Asia-Pacific's office space every year.
For context, India's absorption of office space last year was around 80 million square feet, which is half of the total absorbed across the Asia-Pacific region. So, in terms of commercial real estate, India is becoming a dominant market.
To put things into perspective, India’s economy is under USD 4 trillion, while China’s economy is around USD 16-17 trillion. Over the last five years, a city like Bangalore has absorbed as much office space as Shanghai. This illustrates the sheer scale and potential of the commercial real estate asset class in India. It’s a growth story that will unfold over the next 10, 15, or even 20 years.
Rate cuts or hikes won’t drastically change this direction. The market’s drivers are tied to the growth of the economy. Typically, if the economy grows by a certain percentage, the real estate sector grows 1.2 to 1.8 times that, depending on available drivers. India, as one of the world’s fastest-growing large economies, benefits from this growth.
Additionally, geopolitical tensions often work in India’s favour. The "China plus one" strategy is a perfect example. Global organisations are increasingly looking for stable, democratic locations, and India fits that need. The country also has abundant talent. With a population of 1.4 billion, India produces the world’s largest supply of engineers, coders, architects, and designers every year, and we are all English-speaking, which is a significant advantage.
These factors, along with government initiatives like Make in India and manufacturing support, help strengthen the real estate sector. Flex spaces, global capability centres, and the growth of Indian organisations are some of the key drivers. While there might be short-term disruptions, the long-term outlook for India’s commercial real estate market remains stable.
You mentioned GCCs and flex workspaces, which are significant trends in India right now. How is Nuvama adapting its investment strategy to capitalise on these trends?
We’ve established a real estate partnership with Cushman & Wakefield in India, with a 50-50 joint venture. Through this platform, we launched our first office fund, which is valued at around USD 450 million. It's a fairly large fund, which enables us to make investments nearing USD 1 billion, giving us access to a wide range of opportunities.
We’re exploring office spaces in Delhi, Chennai, Pune, and Bangalore, where we expect a combination of GCCs, flex workspaces, traditional office spaces, and potentially retail as well.
The way we plan to develop this platform is by initially focusing on office spaces, but we also see potential in funding greenfield developments and ultimately expanding into REITs. Our aim is to cover the full value chain of office space in India, ensuring we’re positioned for long-term growth.
(Unsplash)What was the strategy behind creating this partnership with Cushman & Wakefield?
At Nuvama, we recognised that our clients have a growing need for commercial real estate investments. However, in India, there is a shortage of high-quality commercial real estate products available for investment.
While we have four REITs listed, these generally offer pre-tax returns of around 11-12% at best. For high-net-worth investors who were looking to invest in real estate on a pre-REIT basis, there were very few opportunities from reputed institutions like ours.
This gap in the market was the genesis of our idea to create an office space fund for our investors. Many of our high-net-worth clients either invested in REITs or bought small office buildings and strata properties, but they had mixed results. This highlighted the need for a more structured and reliable solution. The challenge then became how to execute it effectively.
Nuvama is not a real estate firm; we’re a financial services institution. And in a country like India, where state laws can vary significantly, the complexities of navigating both federal and state laws are considerable. On top of that, establishing strong relationships with developers on the ground and understanding tenant needs is crucial. The complexity is much higher when you’re looking at an asset worth at least USD 100 million, and you need a solid, scalable footprint.
To fill this gap, we partnered with a domain expert in real estate. Thankfully, Cushman & Wakefield has been operating in India for many years and has a strong presence with around 3,500 people on the ground. They are real estate specialists, while our strength lies in financial services. By combining our expertise, we were able to create a unique platform that brings together real estate knowledge and financial services to offer a tailored solution for investors.
We’ve been seeing a strong demand for ESG-compliant office spaces with advanced technology integration. How has this situation impacted the fund's strategy regarding ESG-compliant and tech-enabled spaces?
I think ESG is no longer optional, it’s a baseline requirement if you want to remain relevant. The future employer is looking for high-quality, energy-efficient, and sustainable green buildings; that’s the minimum expectation. But beyond that, the younger generation, which is shaping the future workforce, is demanding much more from office spaces. They’re looking for a sense of community and a workspace that enriches their lives.
In India, many people still face long commutes, so it's important to make the office environment as warm and welcoming as possible. It's not just about food and beverage options but about creating a holistic experience. The social and amenity aspects, such as spaces that enhance employee well-being, are now critical. When we assess buildings, ESG compliance is a must, but our preference is to ensure all these other boxes are ticked as well.
(Wikimedia Commons)With high-net-worth and domestic investors, particularly family offices, playing a significant role in real estate investment in India, is Nuvama tailoring its strategies to cater to their preferences?
Yes, the fund has been tailored to meet the needs of family offices and ultra-high-net-worth individuals. One of the key aspects is the design of the product itself. For instance, globally, a commercial real estate product of this nature typically has a minimum term of 10 years. However, our product is designed for a 6-year term, as our investors prefer shorter lock-ins.
Additionally, our investors appreciate co-investment opportunities, where they can invest alongside the fund in specific projects. This flexibility is incorporated into the fund, allowing us to meet the preferences of family offices and ultra-high-net-worth individuals.
When we engage with family offices, they often have other investments or want to make additional investments in commercial real estate outside of the fund. Given our expertise, particularly through the combined platform with Cushman & Wakefield, we offer significant value-adds and exchange of ideas, which is something that sets us apart from others in the market.
The fund is also structured to cater to NRI (Non-Resident Indian) investors, even though we currently have fewer of them. However, this flexibility makes it accessible to this group, allowing them to participate in the same opportunities.
What is Nuvama's strategy moving forward, and what are your expectations for the market in the coming years?
We are very focused on the first fund, and we expect to fully raise USD 450 million by September-October of this year. We're already halfway through, so that should be completed on schedule. Over the next year, our focus will be on deploying the capital and making the right investments for this fund.
Beyond that, we are looking to build out the entire commercial real estate value chain, starting with the office real estate market. The next steps could involve launching a core fund, a development-oriented fund, and eventually a REIT. Additionally, we’re actively exploring opportunities in data centers and warehousing. Within the next one to two years, we expect to roll out at least one of these strategies.
Join the conversation with Anshu Kapoor and other top real estate financing industry leaders at GRI Funding Opportunities India 2025.