India Sotheby’s International Realty (ISIR) has reported that 33% of High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs) are prepared to invest more than ₹10 crore to secure the ideal luxury property.
Luxury property prices have seen an increase of 8-12% over the past year in major cities, surpassing the peak levels of 2015, according to the annual ‘Luxury Outlook Survey 2023’ by India Sotheby’s International Realty.
The survey, which included a sample size of over 500 HNIs and UHNIs, unveiled that 61% of these individuals are actively seeking to purchase luxury real estate in the upcoming year.
Regarding preferred price ranges, the survey revealed a significant interest (65%) in the ₹4-10 crore bracket for property investments, with 33% expressing a willingness to spend over ₹10 crore on the right luxury property.
Despite the 8-12% increase in luxury property prices in 2022, ISIR highlighted that these prices are only marginally higher than the peak levels of 2015.
ISIR CEO Amit Goyal noted the continued strength in housing sales driven by pent-up demand and the nation’s economic growth. He emphasized the influx of new buyers into luxury real estate as the nation’s wealth grows.
The survey indicated a fundamental shift in the desire for home ownership across age groups post-pandemic, with a thriving young workforce in India expected to drive continued demand for the housing sector, according to Goyal.
Ashwin Chadha, President of ISIR, highlighted that Indian real estate has entered a multi-year bullish phase since 2021, with luxury home prices rising over the past 16 months. He mentioned that these prices are still only marginally higher than the peak prices of 2015, creating opportunities for HNIs to secure well-priced deals.
Key motivators for property purchases in 2023-24 include lifestyle upgrades and capital appreciation, with 12% of the wealthy considering real estate as a chosen asset class to create multi-generational wealth.
Top cities for real estate purchases include Delhi NCR, Mumbai, Goa, and Bengaluru. An interesting shift was noted, with 11% of India’s wealthy exploring real estate opportunities overseas, a substantial increase compared to the negligible interest observed in the previous 2021 survey.
Survey findings also revealed that 57% of respondents are still considering city and urban communities for luxury real estate purchases, while 33% are inclined towards owning a farmhouse or holiday destination. High-rise apartments remain the most sought-after investment, followed by farmhouse/holiday homes, with 23% expressing interest in rent-yielding commercial real estate.
The top reasons influencing property choices among wealthy Indians include larger homes, open green spaces, and excellent physical and social infrastructure. Notably, 11% of respondents emphasized sustainable features as a key factor influencing their purchase decisions.
Furthermore, the report highlighted that 74% of surveyed HNIs and UHNIs believe real estate serves as a crucial asset to hedge against inflation.
