The annual Luxury Residential Outlook Survey 2025, conducted by India Sotheby’s International Realty (ISIR), reveals a tempered yet robust confidence in India’s economic growth among affluent individuals. The survey indicates a slight decline in optimism among High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs), dropping from 79% in 2024 to 71% in 2025. Despite this decrease, the majority still believe that India will maintain its status as the fastest-growing major economy, with GDP growth anticipated to remain between 6% and 6.5%. In the real estate sector, the investment outlook among HNIs and UHNIs has moderated, with only 62% planning to invest in luxury residential properties over the next 12–24 months, a decrease from 71% in the previous year. This slight shift in sentiment does not diminish the sector’s appeal as a wealth-building asset, as 55% of respondents cite capital appreciation as their primary motivation for investing, rising from 44% in 2024. Nearly half of those surveyed expect returns between 12% and 18%, while 38% anticipate returns below 12%, indicating a more cautious but realistic approach following three years of strong market performance.
Investment Trends and Market Dynamics
As the luxury real estate market in India evolves, Amit Goyal, Managing Director of ISIR, identifies a trend toward trophy and bespoke luxury assets, particularly spacious farmhouses and gated community villas in desirable hill and beach destinations. The increasing wealth among India’s billionaires, which has surged by 42% to exceed $905 billion, underscores this trend. India now ranks as the third-largest billionaire base globally, trailing only the US and China, with its billionaire count more than doubling over the past decade. This impressive financial growth is fueling the luxury real estate market, making it an attractive investment avenue. The survey also highlights a growing interest in second and holiday homes, with 54% of respondents considering properties in scenic locations. Convenience remains a priority, as 55% prefer homes within a four-hour drive, while only 20% are looking at international options. Globally, Dubai has emerged as a preferred destination, surpassing London, with US cities also capturing attention.
Future Prospects and Market Sentiment
The survey results indicate a shift in investment preferences, with financial assets like equities and commodities still favored by 54% of respondents, while 36% plan to invest surplus funds in real estate over the next two years. This trend highlights real estate’s stability as a tangible asset amidst market fluctuations. Interest rates are expected to ease moderately, with 71% of respondents anticipating gradual reductions, despite concerns about inflation from 23% of participants. As India’s luxury real estate market adapts to the preferences of affluent individuals and young wealth creators, the landscape is transforming to offer diverse lifestyle and investment opportunities. Ashwin Chadha, CEO of ISIR, emphasizes the remarkable evolution of luxury real estate over the past decade, transitioning from self-built bungalows to high-rise apartments and gated community villas designed by renowned developers. This shift indicates that luxury properties have evolved beyond mere status symbols into robust investment avenues.
The Ultra-High-Net-Worth Individual population in India has reached 13,600 in 2024, with projections indicating a 50% increase by 2028. This growing affluence, combined with the sector’s resilience as an inflation hedge and potential for long-term capital appreciation, makes luxury real estate an attractive choice for lifestyle upgrades and wealth creation. The rising influence of young wealth creators under 40 further reinforces the notion that luxury real estate is not only expanding but also shaping the future of India’s property landscape.
Conclusion: The Evolving Landscape of Luxury Real Estate in India
In summary, the Luxury Residential Outlook Survey 2025 reflects a nuanced sentiment among India’s wealthy individuals towards economic growth and real estate investment. While optimism has slightly diminished, the overall outlook remains positive as HNIs and UHNIs continue to view luxury properties as essential assets for wealth accumulation. The anticipated demand for premium residential properties, especially in scenic locales, highlights the evolving preferences of affluent buyers. As India’s luxury real estate market matures, it is poised to cater to the diverse needs of a new generation of investors seeking both lifestyle enhancements and financial security. With the landscape shifting to accommodate modern demands, it is clear that luxury real estate will continue to play a pivotal role in shaping India’s economic and property market trajectories in the years to come.
