A significant portion of India’s affluent investors foresee a cooling in the luxury residential real estate market in the fiscal year 2026‑27, according to a recent survey conducted by India Sotheby’s International Realty. The survey, which polled nearly 700 high‑net‑worth individuals and ultra‑HNIs, revealed that 56% of respondents expect moderation in demand and market momentum for luxury housing in FY27.
The annual report highlights evolving investment preferences among wealthy Indians. While luxury real estate remains a core component of asset portfolios, equities continue to maintain the top spot, with 67% of respondents indicating a preference for stock market investments. Physical real estate follows closely at 64%, demonstrating sustained interest in tangible property assets despite expectations of market moderation.
Most wealthy investors remain confident about India’s broader economic trajectory, with 72% projecting GDP growth in the 6–7% range for FY27. This optimism underscores the belief that while the luxury housing market may cool, the overall economy will remain resilient.
The survey also found that many high‑net‑worth buyers are choosing luxury homes for both capital appreciation and personal use, with 53% reporting real estate purchases for investment purposes and 47% for residential living. Additionally, about 67% of respondents expect annualised returns of up to 15% on real estate investments, indicating a strong long‑term outlook despite near‑term moderation.
Industry voices highlight that the luxury housing sector has demonstrated robust performance in recent years across major markets such as Delhi‑NCR, Mumbai, Goa, and Alibaug, but evolving buyer demographics and broader investment trends are influencing sentiment. The survey suggests that wealth creators, startup founders, and senior professionals are increasingly active in the luxury segment, shaping future demand patterns.
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