India’s Luxury Realty Market is Poised for Continued Growth in 2025: ISIR
The 2025 Luxury Residential Outlook Survey by India Sotheby’s International Realty (ISIR) reveals steady confidence in India’s economic growth, though optimism has slightly waned. While 79% of respondents were bullish in 2024, this figure has dipped to 71% in 2025. Despite this moderation, High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs) remain confident that India will continue to be the fastest-growing major economy, with GDP growth expected between 6% and 6.5%.
Real estate remains a preferred investment for the wealthy, although the percentage of HNIs and UHNIs planning to invest in the next 12–24 months has declined from 71% in 2024 to 62% in 2025. The focus on capital appreciation has strengthened, with 55% citing it as their primary motivation for investing in luxury residential properties, up from 44% last year. Nearly half of respondents expect returns between 12% and 18%, while only 15% foresee returns exceeding 18%, reflecting tempered expectations after years of strong growth.
According to Amit Goyal, MD of ISIR, “India’s luxury real estate market is poised for continued growth in 2025, driven by demand for unique luxury assets like spacious farmhouses and gated villas in hill and beach destinations. With billionaires in India experiencing a 42% surge in wealth, now exceeding $905 billion, the country solidifies its position as the third-largest base for billionaires globally, following the US and China.”
The survey highlights growing interest in second and holiday homes, with 54% of respondents exploring properties in hill or beach destinations. Proximity is key, as 55% prefer homes within a four-hour drive, while 20% consider international locations. Among global markets, Dubai has surpassed London as the top choice, with US cities also gaining traction.
While financial assets like equities and commodities remain the top priority for 54% of respondents, 36% plan to allocate surplus funds to real estate, underscoring its value as a stable, tangible asset in uncertain markets.
With interest rates expected to ease moderately, 71% of respondents anticipate gradual reductions, although 23% remain cautious due to inflation concerns. As the luxury real estate market evolves, it continues to cater to the lifestyle and wealth-generation needs of affluent individuals and young wealth creators.
