Despite a substantial growth in the prices of luxury properties over the last two years and the mood on economic growth turning more measured, around 62 percent of HNIs (high net-worth individuals) and UHNIs have expressed desire to invest in luxury real estate in the next 12-24 months, according to the annual luxury outlook survey 2025 by India Sotheby’s International Realty (ISIR), which focuses primarily on luxury residential sales and large property transactions.
Capital appreciation continues to be an important driving factor for investment in real estate. Almost half of the respondents expect real estate investments to deliver returns between 12-18 percent going forward.
The ISIR data showed that 55 percent of respondents cited capital appreciation as the key reason for buying luxury residential real estate in 2025, which in 2024 was 44 percent. Similarly, 38 percent of HNIs anticipate returns below 12 percent while fewer than 15 percent of wealthy Indians predict returns exceeding 18 percent.
The survey highlighted that interest in international real estate among HNIs has grown significantly to 22 percent in 2025 from 10-11 percent.
However, the survey also highlighted that the outlook among wealthy Indians has moderated, as in 2024 around 71 percent HNIs were planning to invest in luxury real estate in the next two years while this year the number has come down to 62 percent.
Experts opined that despite the small moderation, the firm confidence underlines luxury real estate’s lasting charm as a wealth-building asset.
Amit Goyal, MD, India Sotheby’s International Realty, said that India’s luxury real estate market is poised for sustained 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. 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,” he said in a statement.
The survey also underlined a growing interest in holiday homes, with 54 percent of wealthy Indians having an inclination for properties in hill or beach destinations. As many as 55 percent respondents prefer second homes within a four-hour drive. Nearly 20 percent of HNIs have responded in favour of investing in international locations.
Dubai remains favourite when it comes to investing abroad followed by London. The survey also highlighted that US cities are also gaining attention among wealthy Indians.
Ashwin Chadha, CEO of India Sotheby’s International Realty said that in the current scenario luxury real estate has become a more robust investment opportunity rather than being just a status symbol.
“The number of UHNIs has reached 13,600 in 2024 in India, with projections of a 50 percent 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,” he said.
