This family-owned real estate business rising from humble beginnings not just survived, but has grown into a conglomerate, leading the Indian real estate sector in what is now an insanely competitive and tech-driven.
And we are talking of none other than the Embassy Group, founded in 1993, and now one of India’s largest real estate development companies with a broad portfolio of prime commercial, residential, retail, hospitality, services, and educational spaces across Delhi NCR, Bangalore, Chennai, Pune, Mumbai, Noida and Trivandrum in the Indian market and Serbia and Malaysia in the international market. That’s not all, Embassy sponsored India’s first publicly traded REIT and Asia’s largest REIT by area and has also added Embassy’s property management business.
Breaking down the Group’s journey from then to now for us is the youngest member of the family, Aditya Virwani, Managing Director, Embassy Developments Ltd. He was mentored by Group Chairman, Jitu Virwani, for 2 years before taking on the role as Group COO. He was a member of the team that successfully filed India’s first REIT.
Aditya Virwani begins with his observation of the last 20 years of Indian realty and how over the years family-run firms in Indian real estate have evolved from traditional, localised operations into diversified and increasingly professionally-managed enterprises. According to Aditya Virwani, this evolution has been driven by a strong push towards institutionalisation, with the firms now embracing modern governance structures, while preserving their core values and long-term vision. Embassy REIT is a great example of this evolution, he said.
Now let’s talk about Pros and Cons of a family business in real estate:
There is no doubt, family businesses facing a competitive world need to focus on several key areas to scale up and thrive, including strengthening their competitive edge, embracing digitalization, and ensuring strong family governance.
Aditya Virwani agrees that family-owned firms do face distinct challenges but they also bring unique advantages and there are ways these firms are overcoming these challenges.
He stated, “In real estate, the promoter touch remains invaluable. It’s a hands-on business dependent on the government and landowners. The long-term commitment and relationships cultivated by stable family-run businesses offer an edge that shifting professional leadership often cannot replicate. However, multi-generational differences in values and approach can pose challenges. Family disputes, when they arise, can damage the business. Additionally, family-run firms sometimes face limitations in developing and retaining external talent due to entrenched structures or loyalty-driven decision-making.”
Aditya Virwani rightly puts it that the family business has the advantage of leveraging unique family strengths like deep knowledge and agility to seize opportunities, once they effectively navigate the challenges of internal dispute and talent retention, not dependant on family loyalties.
Family-run firms in Indian real estate have evolved from traditional, localised operations into diversified and increasingly professionally-managed enterprises. Embassy REIT is a great example of this evolution.
How is the Family-run Business Structure evolving?
Unquestionably, a successful family business will need to be built upon an appropriate structure - that may shift as it moves from generation to generation, or as the market evolves. Most importantly, to achieve scale, organizations need to extend their leadership pipeline.
“There is definitely a clear shift towards professional management in family-run firms, says Aditya Virwani. “Many are incorporating external leaders into key roles to bring in specialised expertise and fresh perspectives. This hybrid approach balances professional rigour with the family’s legacy and long-term vision. We’re seeing more family businesses adopting performance-based evaluations, robust governance frameworks, and transparent practices as well.”
Aditya Virwani also touched upon the challenges that many a next-generation leadership faces when entering the business, from having the patience to learn the business to learning to get their hands dirty before they take on more responsibility.
“At times, decision-making authority remains concentrated in the hands of the first generation, making it difficult for younger leaders to implement new ideas and innovations,” he admits.
Whatever the challenges, there is no hesitation in saying that family run business are here to stay in Indian realty sector. And the young leader Aditya Virwani believes that family businesses will continue to be an important part of the Indian real estate growth story.
“Family businesses will continue to be integral to India’s real estate growth story. As the market matures, these firms are scaling up, driving consolidation, and maintaining deep-rooted relationships that are key to navigating India’s complex real estate landscape,” Aditya Virwani emphasized.
There is definitely a clear shift towards professional management in family-run firms. This hybrid approach balances professional rigour with the family’s legacy and longterm vision.
