Luxury Real Estate Outlook: 62% HNIs to Invest in 2025

New Delhi, Jan 28 (PTI) More than 60 per cent of High-Net-Worth individuals (HNIs) and Ultra-HNIs plan to invest in real estate during the next two years, according to India Sotheby's International Realty survey of wealthy people.

India Sotheby's International Realty, one of the leading real estate consultants for luxury properties, on Tuesday, released its annual 'Luxury Residential Outlook Survey 2025' with a sample size of 623 HNIs and UHNIs respondents from major cities.

The survey revealed that confidence in India's economic growth remains strong, albeit slightly tempered. Optimism has declined from 79 per cent in 2024 to 71 per cent in 2025 survey.

Nevertheless, most HNIs and UHNIs believe India will continue to be the fastest-growing major economy, with GDP growth projected to hover between 6 per cent and 6.5 per cent.

"In the real estate sector, the outlook among UHNIs and HNIs has moderated, with 62% planning to invest in the next 12–24 months compared to 71% in 2024. Despite this slight dip, the steady confidence underscores real estate's enduring appeal as a wealth-building asset," the statement said.

HNIs and UHNIs remain primarily motivated by capital appreciation, with 55 per cent citing it as their main reason for investing in luxury residential real estate in 2025, up from 44 per cent in 2024.

Nearly half of respondents expect real estate investments to deliver returns between 12 per cent and 18 per cent, while 38 per cent anticipate returns below 12 per cent. Fewer than 15 per cent foresee returns exceeding 18 per cent, reflecting more realistic expectations after three years of strong gains.

Amit Goyal, MD of India Sotheby's International Realty, said, "As we look ahead to 2025, India's luxury real estate market is primed for continued growth, 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," he added.

India stands out as a frontrunner, with billionaires here experiencing a staggering 42 per cent surge in collective wealth, now exceeding USD 905 billion, he said citing the UBS "Billionaire Ambitions Report."

"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," Goyal said.

The survey also highlighted a rising interest in second and holiday homes, with 54 per cent of respondents considering properties in hill or beach destinations.

Ashwin Chadha, CEO of India Sotheby's International Realty, said: "The evolution of luxury real estate in India over the past decade has been remarkable."

"A segment once dominated by self-built bungalows has now added high-rise luxury apartments and gated community villas by renowned developers offering world-class amenities and assured quality to the demand bouquet of the rich and famous.

Today, luxury real estate is more than a status symbol; it's a robust investment avenue," he added.