62 pc HNIs and UHNIs plan to buy luxury properties in India in next 12-24 months

New Delhi, Jan 28 (IANS) Confidence in India’s economic growth remains strong and 62 per cent of high-net-worth individuals (HNIs) and ultra high-net-worth individuals (UHNIs) have expressed desire to buy luxury properties in the country in the next 12-24 months, according to a report on Tuesday.

Affluent buyers believe that 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, said the annual ‘Luxury Residential Outlook Survey 2025’ conducted by India Sotheby’s International Realty (ISIR).

The steady confidence underscores real estate’s enduring appeal as a wealth-building asset. The number of ultra high-net-worth individuals in India has reached 13,600 in 2024, with projections of a 50 per cent increase by 2028.

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, according to the report.

“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,” said Amit Goyal, MD of India Sotheby’s International Realty.

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. This solidifies India’s position as the third-largest base for billionaires globally, just behind the US and China, Goyal noted.

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.

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, said the report

–IANS

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