Lavesh Bhandari

Why I’m Done With the Indian Real Estate Fundraising Game Consider this post as an open letter to the real estate investment world in India. Not out of bitterness, but out of sheer exhaustion. Everyone Talks About Vision. But No One Wants to Build It. Attend any real estate summit or panel discussion, and you’ll hear the same grand rhetoric: “We’re building the India of tomorrow.” “We believe in Bharat.” “Tier 2 is the next frontier.” But when you sit across the table with these same funds, pitching a real, bankable project in a Tier 2 city, the energy shifts. Suddenly, the market isn’t “ready.” The macros are “uncertain.” The IRR doesn’t scream 20 percent. The Reality Is Simple. They Want Delhi Returns Without Delhi Risk. These funds and institutional lenders claim to enable growth. But they only chase safety. They prefer a deal in a saturated Tier 1 city with a legacy brand, even if it's overpriced and overleveraged. You can bring a clean title, strong demand, sound feasibility, and structured de-risking. It won’t matter. The deal is passed over not because of you, but because of where you’re building. India Cannot Be Built with Just 8 to 10 Cities. A truly developed India doesn’t look like a handful of Tier 1 megacities with Tier 3 belts surrounding them. It looks like 20–30 vibrant urban ecosystems firing in tandem. The question is: Who’s going to recreate Gurgaon in Bhubaneswar? Who’s going to turn Surat, Nashik, Vadodara, and Chandigarh into true economic hubs? The answer should be: forward-looking capital. But the truth is: most of these funds don’t even have a mandate to invest in Tier 2. And Here's the Irony. Most of these funds are powered by family offices and HNIs, many of whom themselves come from Tier 2 cities. Their fathers built businesses in these very places. Their roots, pride, and legacy lie in towns they now consider too “risky” to back. They won’t fund someone like them, twenty years ago. They won’t even take a meeting unless the pin code reads Mumbai, Delhi, Bangalore. And Then They Say, “India Will Never Overcome Its Challenges.” They’re right. Because they are the ones standing in the way of the solution. Everyone wants to be part of India’s growth story But no one wants to author the hard chapters. I’m Not Asking for Sympathy. I’m Just Telling the Truth. I’m not looking for charity. I’m not here to rant. But after knocking on the doors of over a dozen funds and banks, I’m tired of the disconnect. If you talk about building the new India, prove it. Back the places that will define it, not just the ones that already shine on a map. Because until someone is willing to take a bet on emerging India, we’re just giving keynotes about a future we’ve already abandoned.

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A 2023 ANAROCK study shows a 40% YoY increase in #coworking space absorption in Tier 2 cities, outpacing Tier 1 growth rates. Why the boom in smaller cities? Reverse migration post-COVID, lower costs, the startup ecosystems flourishing beyond metros with government incentives (Startup India, Smart Cities Mission), and the growing presence of satellite offices for MNCs. Popular Tier 2 coworking hubs - Jaipur’s C-Scheme, Coimbatore’s RS Puram, Chandigarh’s Industrial Area, and Lucknow’s Gomti Nagar https://lnkd.in/dAR7fSmE

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