A majority of India’s affluent investors continue to favour luxury real estate, with 62% of High-Net-Worth and Ultra-High-Net-Worth Individuals (HNIs and UHNIs) expressing plans to purchase high-end properties over the next 12–24 months, according to the 2025 Luxury Residential Outlook Survey by India Sotheby’s International Realty.
The appetite remains strong despite a moderation in economic optimism, which dipped to 71% in 2025 from 79% in 2024. However, most respondents still expect India’s GDP to grow between 6% and 6.5%, reaffirming its position as the world’s fastest-growing major economy.
Capital appreciation remains the primary motivator for luxury property investment, with 55% of respondents citing it as a key factor, up from 44% last year. Nearly half anticipate returns of 12–18%, while 38% expect under 12% and fewer than 15% foresee returns above 18%.
Demand for second homes is also rising, with 54% of HNIs seeking holiday properties in hill or beach destinations. A majority prefer locations within a four-hour drive, reflecting a growing desire for convenience and lifestyle flexibility. International interest has surged, with 22% considering overseas properties, up from 10–11% in prior years, with Dubai emerging as a top destination.
“India’s luxury real estate market is primed for continued growth, driven by rising affluence and shifting lifestyle priorities,” said Amit Goyal, MD of ISIR. “The surge in billionaire wealth and the growing influence of young wealth creators are redefining the luxury housing narrative.”
While 54% of HNIs continue to prioritise equities and commodities, 36% intend to allocate surplus funds to real estate. With interest rates expected to moderate, 71% foresee gradual reductions, though inflation remains a concern for 23%.
India currently has 13,600 UHNIs, a figure projected to rise 50% by 2028, further supporting long-term momentum in the luxury property segment.
