According to the Luxury Residential Outlook Survey 2025 by India Sotheby’s International Realty, the outlook for real estate investment among high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in India has moderated slightly.
As reported by Hindustan Times, the survey found that 62% of HNIs and UHNIs plan to invest in real estate over the next 12 to 24 months, a decline from 71% in 2024.
Despite a more cautious economic outlook, capital appreciation remains the primary driver of real estate investment. The survey revealed that 55% of respondents are motivated by capital appreciation, up from 44% in 2024. Nearly half of those surveyed (49%) expect returns of between 12% and 18%, while 38% anticipate returns below 12%. Only 15% expect returns above 18%, reflecting more realistic expectations after years of strong gains in the market.
The survey also highlights a sustained interest in second and holiday homes. Over 55% of HNIs prefer these properties to be within a four-hour drive, with many seeking homes in hill or beach destinations. Additionally, 54% of respondents are considering properties in such locations, which underscores the increasing demand for properties offering convenience and accessibility.
Interest in international real estate has surged. Historically, only 10-11% of HNIs showed interest in foreign property markets, but this figure has grown to 22% in 2025. Dubai has overtaken London as the top choice for international locations, while U.S. cities are also attracting growing interest.
Despite other financial assets, such as equities and commodities, being favored by 54% of respondents, real estate continues to attract 36% of HNIs planning to allocate surplus funds over the next two years. This indicates that, despite market volatility, real estate remains a stable, tangible asset for wealth preservation and growth.
Although optimism regarding economic growth has moderated slightly from 79% in 2024 to 71% in 2025, most HNIs and UHNIs still believe India will continue to be the fastest-growing major economy. The country’s GDP growth is projected to remain between 6% and 6.5% in the coming years. The number of billionaires in India has more than doubled over the past decade, with their total wealth tripling, further solidifying the country’s position as the third-largest base for billionaires globally, behind only the U.S. and China.
The survey also notes that 71% of respondents expect interest rates to ease moderately, with many anticipating gradual reductions. However, 23% of respondents remain cautious, citing concerns about inflation. The easing of interest rates could lead to more investment in real estate, which has become increasingly attractive to HNIs and UHNIs in recent years.
Amit Goyal, Managing Director of India Sotheby’s International Realty, expressed confidence that India’s luxury real estate market is primed for continued growth in 2025, although with more cautious optimism. He pointed out that demand for trophy properties and bespoke luxury assets, such as spacious farmhouses and gated community villas in hill and beach destinations, will continue to rise in the coming year. Goyal noted that the market for luxury real estate has shifted from self-built bungalows to high-rise apartments and villas by renowned developers offering world-class amenities.
Real estate remains a preferred investment option for many HNIs and UHNIs due to its ability to deliver stable returns and long-term wealth generation. The survey highlights that, despite some moderation in optimism, HNIs continue to view real estate as a safe, profitable investment avenue, with significant interest in both luxury domestic and international properties.
In conclusion, the Luxury Residential Outlook Survey 2025 underscores that while the investment outlook for HNIs and UHNIs is slightly tempered, real estate remains an enduringly attractive asset class, driven by capital appreciation and the desire for tangible wealth-building opportunities.