A substantial 75% of High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs) are confident in the positive performance of real estate over the next two to three years, according to the 2023 Luxury Outlook Survey by India Sotheby’s International Realty (ISIR). Moreover, 74% of respondents view real estate as a crucial asset for hedging against inflation.
The allure of real estate remains strong, with 61% of HNIs and UHNIs expressing an intention to purchase properties in 2023-24. High-rise apartments lead the preferences at 34%, closely followed by farmhouses and holiday homes at 30%. Additionally, there is a demand for rent-yielding commercial real estate, with 23% of HNIs considering investments in this sector.
Properties in the INR 4 – 10 crore price range are favored by 65% of HNIs, while 33% are open to spending over INR 10 crore for the right luxury property. Amit Goyal, CEO of India Sotheby’s International Realty, attributes this growing interest to strong policies and reforms supporting India’s economic growth, positioning it as the 5th largest world economy in 2022.
The survey reveals that 34% of HNIs and UHNIs have purchased luxury real estate since April 2021. Lifestyle upgrades and capital appreciation are identified as the primary motivations for property acquisition in 2023-24, with 12% considering real estate as a means to create multi-generational wealth.
Ashwin Chadha, President of India Sotheby’s International Realty, emphasizes the potential of real estate as an excellent asset for wealth accumulation, particularly in the current bullish market that began in 2021. The top cities for real estate purchases include Delhi NCR, Mumbai, Goa, and Bengaluru. Interestingly, 11% of wealthy individuals are exploring real estate opportunities overseas, indicating a shift in preferences compared to the previous survey conducted in 2021.
As 45% of HNIs and UHNIs express interest in consolidating their real estate portfolios for higher quality properties and income generation, the survey suggests that a strategic assessment could benefit those with multiple properties. Larger homes, open green spaces, and robust physical and social infrastructure are key factors influencing property choices, with 11% emphasizing sustainability—a notable increase from the previous year.
This growing awareness indicates a shift towards a more sustainable lifestyle, aligning with the increased availability of green and sustainable homes in the market as developers embrace environmentally friendly offerings.
