Nearly 62 percent of wealthy Indians, including HNIs (high net-worth individuals) and UHNIs, are interested in investing in luxury real estate in the next 12-24 months despite a substantial rise in luxury property prices in the last two years and subdued economic growth.
This finding is based on the annual Luxury Outlook Survey 2025 conducted by India Sotheby’s International Realty (ISIR), which focuses primarily on luxury residential sales and large property transactions. The survey stated that interest in international real estate among HNIs has grown from 10-11 percent historically to 22 percent in 2025, marking a notable surge.
The ISIR data showed that HNIs and UHNIs remain primarily motivated by capital appreciation, with 55 percent citing it as their main reason for investing in luxury residential real estate in 2025, up from 44 percent in 2024. Nearly half of the respondents expect real estate investments to deliver returns between 12 percent and 18 percent, while 38 percent of wealthy Indians anticipate returns below 12 percent. Fewer than 15 percent foresee returns exceeding 18 percent, reflecting more realistic expectations after three years of strong gains.
The outlook
The survey also showed that the outlook among UHNIs and HNIs has moderated, with 62 percent planning to invest in the next 12–24 months compared to 71 percent in 2024.
Experts said that despite this slight dip, the steady confidence underscores luxury real estate’s enduring appeal as a wealth-building asset.
Amit Goyal, MD of India Sotheby’s International Realty, said India’s luxury real estate market is primed for continued growth in 2025, 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.
Inclination towards holiday homes
The survey also highlighted a rising interest in second and holiday homes, with 54 percent of respondents considering properties in hill or beach destinations. Convenience is a key factor, as 55 percent of wealthy Indians prefer homes within a four-hour drive, while only 20 percent opt for international locations.
Among global markets, Dubai has overtaken London as the top choice, with US cities also gaining attention, the survey showed.
Ashwin Chadha, CEO of India Sotheby’s International Realty, said that 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 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.
Also Read: Explained: Hill stations redefine second-home market amid boom for residential properties
Sameer Mutreja, Founder and Promoter, Scapes Hospitality, said there has been a strong and growing interest in the luxury second home market as buyers increasingly seek escape from urban centres and look for attractive investment options.
“With projects in Goa and now in Kasauli, buyers are looking for retreat-like spaces that combine luxury, practicality, and long-term value. The growing popularity, not only in traditional locations like Goa but now in the hills, can also be attributed to factors such as rising demand for retirement homes and an increased pivot towards a hybrid work pattern thus making people more open to owning a second property in scenic and tranquil locations,” he said.
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