The Government of Singapore Investment Corp's (GIC) real-estate arm warns India will be flooded with luxury hotels and malls. However, it remained optimistic about the country's longer-term prospects.

In a recent report from Reuters, Deputy President Goh Kok Huat, GIC at a property seminar in Singapore said I would probably stay away from luxury hotels because I think there is a huge supply coming. He also mentioned that he would stay away from retail malls for similar reasons.

GIC is the world's fourth-largest sovereign wealth fund and manages estimated assets of at least $200 billion. However it refuses to disclose any details of assets secured.

Goh maintained that GIC had invested hugely in India, but refused to specify how large its current investments were. Further he added that the Indian economy had the potential to grow by more than 7-8 percent, which he hopes will be encouraging.

His favored sectors in India were offices in key Indian cities and residential property as a whole.

But he warned India is going to be a lot messier round the edges of the growth trajectory and that business cycles in the Indian real estate sector are likely to be relatively short.