Don't buy Real estate wrong! Family office secrets to learn before its late
Last week, I was at a cocktail evening in South Mumbai when someone joked that the new form of “family silver” is a sea-facing duplex in Worli.
Everyone chuckled, followed by a submissive cheer - not just because it's a new must-have, but because the joke reveals a deeper truth.
UNHWIs, promoters, industrialists, and family offices have poured over ₹25,000 crore into luxury real estate. That’s a 90% jump since past 3 years!
What’s happening?
That evening, this became the topic of discussion and I discovered the 3 hidden power moves rich families are using to grow their generational wealth.
My eyes widened realising the real reason of those chuckles and cheers!
“What’s common between Lutyens’ Bungalow Zone, Carmichael Road, and Lodha Malabar?” somebody at the party asked.
“You don’t just live in them. You’re listed under them.” They aren’t just postcodes, they’re prestige markers.
But like many other prestige symbols, this one too comes with a cause.
“I mean, why not? Gold has liquidity. But Carmichael Road has permanence”, some tipsy voice dominated over the murmur of conversation.
These purchases are preservation plays. Properties in high-stature areas are appreciating at generational rates, and more importantly, they're irreplaceable.
In April 2025, Coldwell Banker Commercial highlighted a significant shift in family office investment strategies: 44% of global family offices plan to increase their exposure to Commercial Real Estate (CRE) over the next 18 months.
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But what’s so new and shocking?
Many family offices have long appreciated real estate because of its low-risk and wealth-preserving nature.
New is today's economic uncertainty with volatile stock markets which is making real estate more attractive than ever.
The focus this time is also strategic.
These investments are increasingly targeting industrial assets, multifamily housing, logistics centers, and specialized properties like data centers- basically, everywhere the supply remains constrained, and demand is on the rise.
Family offices increasingly prefer direct ownership or joint ventures in commercial real estate, instead of dipping into REITs or mutual funds.
Since they get control from acquisition to management, with this direct control, they can make each and every operational decision themselves - rental terms, capital improvements, or repositioning.
But this is beyond just making money. This sets up clear rules like family charters, investment guidelines, and succession plans to help wealth carry on through generations.
In this setup, real estate becomes more than an investment, it turns into a real, lasting family legacy. Every building, lease, or renovation represents the family's values. Unlike stocks, property feels personal and familial.
Hands-on stewardship via direct or joint-venture ownership is one of the most powerful moves by family offices. According to a 2023 report by FINTRX and Charles Schwab, over 74% of family offices now allocate capital to direct investments, many of which are real estate.
Family offices rely heavily on private networks.
I mean the party was a large gathering and everyone knew everyone. Each one is a VIP.
Family offices in general go for off-market and exclusive real estate deals. These are transactions that aren’t publicly listed and are often sourced through private networks or direct outreach.
This isn't just theory. Industry data shows that in 2021, family offices made over 900 direct real estate deals, spending more than $227 billion. Other studies reveal that around 60% of their real estate deals are club-style co-investments, emphasizing their preference for controlled, relationship-driven transactions.
This means less competition and room for more favorable terms like:
bypassing bidding wars,
enjoying reduced transaction costs,
extended Due‑Diligence Periods
negotiating flexible terms like seller financing.
This is not until when my eyes widened because the biggest power move was yet to unfold.
Family offices aren’t just focused on sourcing elite properties through private networks or managing them directly, they’re also championing value-led investing with ESG and legacy in mind. This is part of their 360° approach where every investment decision aligns with enduring principles and a long-term mindset.
Guided by next-generation family members, they’re purposely targeting energy-efficient buildings, green certifications, and eco-friendly development projects. A growing number of family offices are now allocating capital to low-carbon assets, because ESG is no longer just a nice-to-have—it’s a must.
“ESG is future-proofing”, my 39 year old aunt said sipping on her Black Ivory coffee.
Taken together, it’s more than a strategy, it’s a manifesto. Property for these investors isn’t just about returns, it’s about building something that lasts: a living, breathing legacy governed by intention, sustainability, and unshakeable family values.