HNIs interest in real estate moderates

Chennai: The interest in high net-worth individuals in the Indian real estate market has moderated in 2025 from 2024 levels.

In the real estate sector, the outlook among UHNIs and HNIs has moderated, with 62 per cent planning to invest in the next 12–24 months compared to 71 per cent in 2024, finds the survey by India Sotheby’s International Realty (ISIR).

Optimism in India’s economic growth has declined from 79 per cent in 2024 to 71 per cent in 2025. Nevertheless, most HNIs and Ultra HNIs 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.

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.

“Our conviction is driven by the fact that India stands out as a frontrunner, with billionaires here experiencing a staggering 42 per cent surge in collective wealth, now exceeding $905 billion, according to the UBS "Billionaire Ambitions Report." Over the past decade, India’s billionaire count has more than doubled to 185, with their total wealth tripling,” Amit Goyal, MD of India Sotheby’s International Realty.

A rising interest in second and holiday homes was seen with 54 per cent of respondents considering properties in hill or beach destinations. Convenience is a key factor, as 55 per cent prefer homes within a four-hour drive, while only 20 per cent opt for international locations. Among global markets, Dubai has overtaken London as the top choice, with US cities also gaining attention.