Commercial real estate or residential side – where can you expect better returns? Anshu Kapoor answers
Anshu Kapoor, Head of Global Wealth Management, Nuvama Asset Management, says “the demand is there but the supply of high-quality institutional grade products does not exist, so that is our endeavour to be able to serve that demand, to serve that opportunity and give access to the Indian investors to our own commercial real estate assets and create value for them. So, this is the kind of a synopsis of the opportunity.”
We understand that as part of the business at Nuvama Asset you guys are now aiming at upping your real estate play. Talk to us about what exactly are the plans, your recent JV with Cushman, how big can be the size of the opportunity for Nuvama here?
Anshu Kapoor: Thank you for asking about this JV. So, maybe I can give you a little bit of the size of the opportunity. The commercial real estate sector in India is a $100 billion asset class. This asset class is going to double over the next 10 years to become $200 billion. So, it is a very-very large asset class.
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Just to give you a sense of comparison, the private equity asset class in India is about $300 billion. So, this asset class cannot be ignored and this is a structural story. India today consumes or creates supply to about 50% of Asia-Pacific supply. So, Indian cities by far dominate Asia-Pacific in terms of commercial real estate supply. It is a big asset class.
However, it has been invested largely by foreign capital over the last 10 to 15 years. All the large funds that we know of, they have been
