Freedom to invest across asset classes, including overseas real estate, along with low compliance costs and numerous tax benefits, are prompting family offices to look towards Gift City, market participants said. Also, family offices based in Gift City are allowed to make leveraged investments.
Family offices are investment managers set up by ultra-wealthy individuals to invest and manage personal wealth. They typically work like any asset management company or money manager—the only difference is family offices have just one individual or a family as its investors.
In the recent past, RBI raised concerns over some entities that were buying foreign real estate through ODI. Similar reservations have been expressed in the context of Indian entities buying less than 10% in foreign unlisted startups. These restrictions don't apply to entities based out of Gift City.
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Quick Edit: The market's green role
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