Luxury Real Estate Investment Trends in India: Insights from ISIR Survey 2024

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    Credits: Survey conducted by India Sotheby’s International Realty (ISIR). Statements from Amit Goyal, Managing Director, and Ashwin Chaddha, CEO, India Sotheby's International Realty

    In a recent survey conducted by India Sotheby’s International Realty (ISIR), 71 percent of wealthy Indians expressed a strong intent to invest in luxury real estate over the next 12-24 months. Despite a surge in property prices and mortgage rates, this finding underscores a robust interest in high-end properties and income-generating assets. The survey, encompassing over 500 High-Net-Worth Individuals (HNIs) and Ultra High-Net-Worth Individuals (UHNIs), offers valuable insights into the shifting landscape of real estate investments among the elite.

    Key Findings

    1. Portfolio Consolidation: According to the survey, 43 percent of UHNI and HNI respondents aim to consolidate their portfolios, emphasizing a focus on superior quality properties and income-generating assets.
    2. Top Vacation Destination: Goa remains the top choice for vacation homes, commanding an impressive 35 percent share of responses.
    3. Overseas Investments: The desire to invest in overseas property remains stable at 12 percent, with Dubai UAE and the USA maintaining their positions as top choices.
    4. Capital Appreciation: The survey indicates a shift, with capital appreciation surpassing lifestyle upgrades as the primary motivation for real estate investment, signaling a return of investors with a focus on long-term appreciation.
    5. Diversified Real Estate Portfolios: A noteworthy 83 percent of surveyed affluent Indians own multiple luxury properties, reflecting a trend of diversified real estate portfolios among the elite.

    Expert Insights

    Amit Goyal, Managing Director of India Sotheby’s International Realty, highlighted the robust economic momentum of India, projecting it to become the third-largest economy by 2027. Goyal sees a heightened interest in real estate as a compelling avenue for long-term wealth creation, especially in the top end of the market.

    Ashwin Chaddha, CEO of India Sotheby’s International Realty, pointed out a shift in economic sentiment and a substantial increase in new luxury project launches across the top seven cities in 2023. He believes that investors are strategically positioning themselves for wealth accumulation and creating multi-generational wealth through real estate investments.

    Real Estate Portfolio Snapshot

    The survey revealed that, beyond primary residences, respondents showcased a diverse array of real estate assets, with 34 percent owning commercial real estate, 25 percent holiday homes, 21 percent agricultural land, and 20 percent farmhouses.

    Economic Outlook

    In line with economic optimism, 56 percent of HNIs and UHNIs believe that the Reserve Bank of India will start reducing interest rates in 2024, indicating a positive mortgage and financing outlook.

    The luxury real estate market in India is witnessing a resurgence, driven by a renewed interest among investors and a strategic shift in economic sentiment. The survey results reflect a growing acknowledgment of real estate’s enduring value and potential for sustained financial growth, positioning it as a key player in wealth accumulation and multi-generational planning.

    Also read: Rapid Growth in India’s Real Estate Market: Is it Sustainable?

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