Wealthy set their sights on real estate

The attention of India’s wealthiest individuals is focused on the real estate sector. They are showing a significant interest in investing in real estate. According to a survey by real estate consultancy firm India Sotheby’s International Realty, more than 62% of high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) plan to make substantial investments in the real estate sector over the next two years. The survey also revealed trends in the investment behaviours of the affluent. Despite a slight dip in optimism regarding India’s economic growth, there are still expectations that growth will remain strong.

While optimism was at 79% in 2024, it dropped to 71% in the 2025 survey. Nevertheless, most people remain confident that India will continue to be one of the fastest-growing major economies, with GDP growth projected to be between 6% and 6.5%. With no major misconceptions about returns in the real estate sector, many view it as a good choice for investments. The main reason for investing in luxury residential real estate is the expectation of significant returns, with 55% of respondents indicating this compared to 44% in 2024. Nearly half of those surveyed believe that returns from real estate investments will range from 12% to 18%. However, 38% expect returns to be less than 12%, and 15% anticipate returns higher than 18%.

There is also growing interest in second holiday homes. Fifty-four percent of people prefer holiday homes in mountain or beach locations, while 55% consider proximity to transport key, preferring locations within a four-hour drive. Twenty percent are leaning toward international destinations, with Dubai topping the list over London, followed by a growing interest in American cities. The report also noted that the increasing number of billionaires in India is positively contributing to the real estate sector. The collective wealth of India’s billionaires has grown by 42%, surpassing $905 billion. Over the past decade, the number of billionaires in India has doubled to 185, with their total wealth tripling. This places India third in the world, after the U.S. and China, for the highest number of billionaires.

“The domestic luxury real estate market continues to grow. We foresee sustained demand for expansive farmhouses and gated community villas,” said Amit Goyal, MD of India Sotheby’s International Realty.