62% High-Net-Worth Individuals (HNIs) looking to invest in luxury real estate: Survey

The outlook for the real estate sector among Ultra High-Net-Worth Individuals (UHNIs) and High-Net-Worth Individuals (HNIs) has moderated, with 62% planning investments over the next 12–24 months, down from 71% in 2024. According to the annual luxury residential outlook survey by India Sotheby’s International Realty (ISIR), nearly 50% of respondents expect returns between 12% and 18%. In comparison, 38% anticipate returns below 12%. Optimism has declined from 79% in 2024 to 71% in 2025. Despite this, most UHNIs and HNIs still believe India will remain the fastest-growing major economy, with GDP growth projected between 6% and 6.5%. 

Motivated primarily by capital appreciation, 55% of respondents plan to invest in luxury residential real estate in 2025, up from 44% in 2024. India is also emerging as a key player in the global wealth landscape, with billionaires experiencing a 42% surge in collective wealth, exceeding Rs. 78,30,965 crore (US$ 905 billion). Over the past decade, India’s billionaire count has more than doubled, positioning it as the third-largest base for billionaires globally. The survey also reveals an increased interest in second homes, with 54% considering properties in hill or beach destinations. While financial assets such as equities and commodities remain the top choice for 54% of respondents, 36% plan to allocate surplus funds to real estate. This underscores the asset’s stability amid market volatility. With interest rates expected to ease moderately, 71% of respondents anticipate gradual reductions, although 23% remain cautious due to inflation concerns. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.