India Sotheby`s International Realty`s annual survey reveals a sustained appetite among affluent buyers for luxury real estate
The annual Luxury Residential Outlook Survey 2025 conducted by India Sotheby’s International Realty (ISIR) revealed that confidence in India’s economic growth remains strong, albeit slightly tempered. Optimism has declined from 79% in 2024 to 71% in 2025. Nevertheless, most High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs) believe India will continue to be the fastest-growing major economy, with GDP growth projected to hover between 6% and 6.5%.
In the real estate sector, the outlook among UHNIs and HNIs has moderated, with 62% planning to invest in the next 12–24 months compared to 71% in 2024. Despite this slight dip, the steady confidence underscores real estate’s enduring appeal as a wealth-building asset.
HNIs and UHNIs remain primarily motivated by capital appreciation, with 55% citing it as their main reason for investing in luxury residential real estate in 2025, up from 44% in 2024. Nearly half of respondents expect real estate investments to deliver returns between 12% and 18%, while 38% anticipate returns below 12%. Fewer than 15% foresee returns exceeding 18%, reflecting more realistic expectations after three years of strong gains.
Mr. Amit Goyal, MD of India Sotheby’s International Realty, said “As we look ahead to 2025, India’s luxury real estate market is primed for continued growth, though with a more cautious optimism. We believe demand for trophy and bespoke luxury assets, especially spacious farmhouses and gated community villas in hill and beach destinations will be a significant trend in the coming year. Our conviction is driven by the fact that India stands out as a frontrunner, with billionaires here experiencing a staggering 42% surge in collective wealth, now exceeding $905 billion, according to the UBS "Billionaire Ambitions Report." Over the past decade, India’s billionaire count has more than doubled to 185, with their total wealth tripling. This solidifies India’s position as the third-largest base for billionaires globally, just behind the US and China.”
The survey also highlighted a rising interest in second and holiday homes, with 54% of respondents considering properties in hill or beach destinations. Convenience is a key factor, as 55% prefer homes within a four-hour drive, while only 20% opt for international locations. Among global markets, Dubai has overtaken London as the top choice, with US cities also gaining attention.
While financial assets like equities and commodities remain the most favored, with 54% of respondents prioritizing them, real estate continues to attract 36% of HNIs planning to allocate surplus funds over the next two years. This underscores the value of real estate as a stable, tangible asset amidst market volatility.
With interest rates expected to ease moderately, 71% of respondents anticipate gradual reductions, although 23% remain cautious, citing inflation concerns. As India’s luxury real estate market evolves to meet the needs of affluent individuals and young wealth creators, the property landscape is evolving to offer a dynamic mix of lifestyle upgrades and wealth-generation opportunities.
Mr Ashwin Chadha, CEO of India Sotheby’s International Realty, said: " The evolution of luxury real estate in India over the past decade has been remarkable. A segment once dominated by self-built bungalows has now added high-rise luxury apartments and gated community villas by renowned developers offering world-class amenities and assured quality to the demand bouquet of the rich and famous. Today, luxury real estate is more than a status symbol; it’s a robust investment avenue.”
The number of Ultra-High-Net-Worth Individuals in India has reached 13,600 in 2024, with projections of a 50% increase by 2028. This rising affluence, coupled with the segment’s resilience as an inflation hedge and its ability to deliver long-term capital appreciation, makes luxury real estate a preferred choice for lifestyle upgrades and wealth creation. Add to this the growing influence of young wealth creators under 40, and it’s clear that luxury real estate is not just growing - it’s defining India’s property landscape.”
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