India's real estate investment market is poised for continued interest in 2026, with high-net-worth individuals (HNIs), family offices, and institutional investors increasingly turning their attention to alternative investments. Chirag Mehta, Founder of Arbour Investments, indicates a constructive outlook for the sector, emphasizing that disciplined selection, strong governance, and effective execution are paramount for generating robust risk-adjusted returns.
Arbour Investments' growth strategy is built on a multi-faceted model encompassing private credit, private equity, and integrated development. The firm has already deployed over ₹770 crore in real estate private credit across major Indian cities like Mumbai, Bengaluru, and Chennai. Its private equity portfolio includes Justo Realfintech Ltd, which successfully listed on the BSE SME exchange in October 2025.
Key Investment Segments and Cities
Mehta identifies residential mid-income and affordable housing as particularly attractive segments, driven by consistent end-user demand. In the commercial real estate sector, Grade-A offices, data centers, and warehousing are expected to benefit significantly from India's expanding digital and logistics infrastructure. Arbour Investments maintains a positive view on Tier 1 cities, including Mumbai, Pune, Bengaluru, Chennai, the National Capital Region (NCR), and Hyderabad, alongside select high-growth corridors surrounding these urban centers.
While infrastructure investment, employment growth, and migration broadly support demand, Mehta cautions that returns will vary substantially across different micro-markets. He states, "The tailwind is broad, but returns will cluster around specific micro-markets, specific asset classes and specific developers."
Technology and Long-Term Strategy
Technology plays a crucial role in Arbour's investment process. The firm utilizes its proprietary Arbour Intelligence Management System (AIMS) for underwriting and ongoing project monitoring. AIMS tracks vital metrics such as sales velocity, construction costs, approval timelines, and escrow discipline, enabling early identification of potential issues and fostering greater consistency in investment decisions and reporting.
Looking ahead, Arbour plans a measured expansion, focusing on strengthening its presence in high-conviction markets and deepening relationships with independent financial advisors (IFAs), family offices, and institutional investors. Mehta anticipates that the ongoing formalization of the sector through regulations like RERA and GST, coupled with the increasing demand for alternative investments, will further institutionalize India's real estate market. He advises investors to adopt a multi-year view, diversify across strategies and markets, and prioritize a manager's discipline and track record over short-term headline return targets.