71% Indian UHNIs and HNIs to buy luxury real estate

Despite a nearly 40% surge in property prices in the top seven Indian cities in the past 24 months and increased mortgage rates, the demand for luxury real estate remains robust. A survey by India Sotheby’s International Realty reveals that 71% of UHNIs and HNIs in India have expressed an intention to purchase luxury real estate in the next 12-24 months, up from 61% last year.

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Even with a substantial rise of around 40% in property prices across the top seven cities in India over the last 24 months, coupled with increased mortgage rates, there is a continued strong demand for luxury real estate. According to a survey conducted by India Sotheby’s International Realty, 71% of Ultra High Net Worth Individuals (UHNIs) and High Net Worth Individuals (HNIs) in India are keen on acquiring luxury real estate in the next 12-24 months, indicating a notable increase from the 61% reported in the previous year.

There has been a noticeable change in the top reasons driving real estate purchases, particularly among affluent investors. The majority of these investors now prioritize capital appreciation as their primary motivation for buying real estate in the upcoming 12-24 months, surpassing the previously dominant factor of lifestyle upgrade. This shift suggests a resurgence of investor activity in the market. Furthermore, a significant number of respondents in the survey have expressed their intention to build assets for future generations, indicating a long-term investment perspective in real estate.

The Luxury Outlook Survey for the year 2024 indicates a strong economic optimism among High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs). A significant 79% of respondents express confidence in the positive trajectory of the Indian economy for the period 2023-24. This marks a notable increase from the 59% recorded in the previous year.

As the world’s fifth-largest economy, India is on track to ascend to the position of the third-largest economy by 2027, as projected by the International Monetary Fund. Additionally, the Reserve Bank of India (RBI) sets a GDP growth guidance of 7% for the year 2024.