Prateek Jhawar, Managing Director and Head of Infrastructure & Real Assets at Avendus Capital, has underlined the pressing need for greater risk capital in India’s commercial real estate sector. Speaking at a recent industry forum, Jhawar said that while the sector continues to attract institutional investors, the flow of capital is often skewed toward safer, income-generating assets, leaving a gap in funding for new developments and innovative projects.
He noted that commercial real estate is a long-gestation business that demands patient capital, especially for projects in their early stages. Without adequate risk capital, developers face challenges in acquiring land, securing approvals, and building large-scale assets that can eventually deliver strong returns.
According to Jhawar, bridging this gap will require a mix of private equity, structured debt, and new financing models that balance investor security with developer flexibility. He added that India’s rapid urbanization and rising demand for office spaces, co-working hubs, and retail complexes present significant growth opportunities—provided financing keeps pace.
Industry analysts agree that unlocking more risk capital could accelerate the next wave of commercial real estate growth, helping India compete with global property markets while supporting broader economic expansion.
