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Below the Key highlights from the luxury real estate sector for 2025, along with insights into projections for 2026 by Mr Amit Goyal, Managing Director, India Sotheby’s International Realty

2025 was a defining year for Indian real estate—marked not just by record sales, but by a clear shift in the quality, confidence, and intent of demand. We saw buyers becoming far more discerning, strategic, and long-term in their approach.

One of the most notable shifts was in buyer demographics. Alongside legacy business families, a new cohort of startup founders, next-generation entrepreneurs, and senior corporate leaders emerged as a powerful force in the market. Many channelled gains from buoyant equity markets, IPOs, and renewed PE–VC activity into real estate—one of the few asset classes that allows efficient capital gains reinvestment under Sections 54 and 54F, while also offering lifestyle value and generational legacy.

Luxury and ultra-luxury housing outperformed all other segments, driven by demand for space, privacy, branded residences, and experience-led living. Buyers today prioritise wellness, intelligent design, sustainability, advanced security, and global-quality services—well beyond just square footage. Second homes also saw strong traction, particularly in Goa, Alibaug, and select hill destinations, as affluent buyers sought lifestyle escapes that combine emotional value with solid investment fundamentals.

While easing interest rates provided relief to both developers and buyers, the sector continued to navigate elevated construction costs and skilled labour challenges. Developers with strong execution capabilities, disciplined planning, and technology-led efficiencies stood out.

Looking ahead to 2026, momentum remains intact, though buyers are likely to become more selective. Iconic residential addresses in Delhi, Mumbai, and Gurugram will continue to command a premium, while India’s office market—led by the structural rise of Global Capability Centres—remains a key growth engine.

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