Real estate continues to be an appealing investment choice for high and ultra-high-net-worth individuals, with 61% expressing an interest in property investment for 2023-24.
Ashwin Chadha, President of India Sotheby’s International Realty, emphasized the potential of real estate as a valuable asset for wealth accumulation and a robust hedge against inflation and stock market volatility.
The survey, which included the insights of 500 High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs), revealed the positive impact of strong policies and reforms on India’s economic growth. Amit Goyal, CEO of India Sotheby’s International Realty, noted the country’s ascent to the fifth-largest world economy in 2022, with ambitions to secure the third-largest position by 2037. The growing wealth of the nation is driving a substantial demand in the housing sector, attracting a new wave of buyers to luxury real estate.
The primary motivations for property acquisition in 2023-24 include a desire for lifestyle upgrades, followed by an expectation of capital appreciation. Additionally, 12% of affluent individuals selected real estate as an asset class to create multi-generational wealth for future generations.
Chadha pointed out the commencement of a multi-year bullish phase in Indian real estate since 2021, with luxury home prices experiencing a gradual rise over the last 16 months. Despite this increase, prices are only marginally higher than the peak levels observed in 2015, presenting favorable opportunities for HNIs to secure well-priced deals.
Regarding portfolio management, 45% of HNIs and UHNIs expressed interest in consolidating their real estate holdings and upgrading to higher-valued properties. The survey suggested that a strategic assessment of multiple properties could benefit these individuals by eliminating under-performing assets and transitioning to better-quality real estate in locations with potential for capital appreciation and rental income.
Key factors influencing property choices among affluent Indians include larger homes, open green spaces, and robust physical and social infrastructure. Notably, 11% of respondents prioritized sustainable features in their property choices, indicating a growing awareness and availability of green, sustainable homes compared to the previous year’s survey.
