Indian Family Offices Deploy $93 Million in Real Estate Credit Across Three Cities

Arbour Investments has deployed more than ₹770 crore in private credit across Mumbai, Bengaluru and Chennai as HNIs shift toward alternative investments.

By the Family Office Real Estate Daily Desk·Monday, September 14, 2026·2 min read

Editorial summary of reporting byBusiness Today Our editorial standards →

Indian Family Offices Deploy $93 Million in Real Estate Credit Across Three Cities — Image: editorial illustration · Story sourced from Business Today

Arbour Investments has deployed more than ₹770 crore across real estate private credit in Mumbai, Bengaluru and Chennai, founder Chirag Mehta said. The firm operates a multi-strategy model spanning private credit, private equity and integrated development. Its private equity portfolio includes Justo Realfintech Ltd, which was listed on the BSE SME exchange in October 2025.

Mehta said the firm remains constructive on India's real estate investment market, citing rising interest from high-net-worth individuals, family offices and institutional investors. Arbour's growth has been driven by a model that combines credit, equity and development, with vertical integration allowing the company to remain involved from land acquisition and underwriting through construction and exit, Mehta said.

Residential mid-income and affordable housing remain attractive segments, supported by end-user demand, Mehta said. In commercial real estate, Grade-A offices, data centres and warehousing are expected to benefit from India's expanding digital and logistics infrastructure. The firm remains positive on Tier 1 cities including Mumbai, Pune, Bengaluru, Chennai, NCR and Hyderabad, along with select growth corridors around those markets.

Infrastructure investment, employment and migration are supporting demand, although returns are likely to vary significantly across micro-markets, Mehta said. The firm is looking to deepen its existing three investment strategies rather than expand its product portfolio. Integrated development offers scope for further growth, while credit and equity solutions can be structured around the requirements of developers and projects, he said.

Arbour uses a proprietary platform called the Arbour Intelligence Management System to support underwriting and ongoing project monitoring. The system tracks metrics including sales velocity, construction costs, approval timelines and escrow discipline. It is designed to identify potential problems early and bring greater consistency to investment decisions and reporting, Mehta said.

Looking ahead, Arbour plans to strengthen its presence in high-conviction markets and deepen relationships with independent financial advisors, family offices and institutional investors. Mehta said expansion would remain measured, with each new market or mandate subject to the same underwriting and governance standards. He expects formalisation through RERA, GST and REITs, along with demand for alternative investments, to support the sector's institutionalisation.

Mehta cautioned investors against focusing solely on headline returns. "We take a multi-year view rather than a short-term trading approach, diversify across strategies and markets; and weigh a manager's discipline and track record alongside headline return targets, with a focus on risk-adjusted returns," he said.

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

Family offices evaluating Indian real estate credit should note that Arbour's ₹770 crore deployment translates to approximately $93 million at current exchange rates. The firm's multi-city approach suggests that single-market concentration risk remains a concern, and that liquidity in any one metro may be insufficient to absorb a large exit. Co-GP structures alongside vertically integrated sponsors like Arbour offer control over construction and approval timelines, but require alignment on governance and exit pricing.

The October 2025 BSE SME listing of Justo Realfintech indicates that equity exits in Indian real estate platforms remain viable at the sub-scale end of the market. Family offices considering direct platform capital should pressure-test the sponsor's ability to deliver multiple exit paths, including public listings, secondary sales to institutionals, or asset-level monetisation. The presence of a proprietary monitoring system tracking escrow discipline and construction costs suggests that operational transparency is a differentiator in a market where developer execution risk is high.

Arbour's focus on mid-income and affordable housing, Grade-A offices, data centres and warehousing aligns with demand drivers from India's digital and logistics buildout. Family offices should underwrite end-user absorption rather than speculative demand, and avoid peripheral micro-markets where infrastructure and employment support are unproven. The firm's emphasis on Tier 1 cities and select corridors suggests that returns in secondary and tertiary markets may not justify the additional execution and exit risk.

Mehta's caution against headline returns and his emphasis on multi-year hold periods argue for patient capital structures with layered liquidity provisions. Family offices deploying into Indian real estate credit should negotiate quarterly or semi-annual reporting on sales velocity, cost overruns and approval delays, and should secure the right to initiate asset sales or demand additional equity from the sponsor if construction milestones slip. The shift toward formalisation through RERA, GST and REITs favours sponsors with institutional-grade governance, but also raises the bar for underwriting and compliance.

Original reporting

Business Today

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