Luxury Housing Market May See Cooling Demand and Prices in FY27
A significant shift appears imminent in India's luxury residential real estate sector, with more than half of the country's wealthy individuals anticipating a moderation in demand and prices during the next financial year. According to a comprehensive survey conducted by premier property consultant India Sotheby's International Realty (ISIR), 56 per cent of high net worth and ultra-high net worth respondents believe the current strength in the luxury housing market will cool down in 2026-2027.
Survey Methodology and Economic Sentiments
The consultant conducted an extensive sentiment analysis by surveying nearly 700 high net worth individuals (HNIs) and ultra HNIs across major metropolitan areas. This assessment aimed to gauge their perspectives on India's economic growth trajectory, investment strategies, and the outlook for the luxury housing segment. The findings were published in the latest report titled 'The India Luxury Residential Outlook 2026', which was officially released on Sunday.
Despite global economic challenges, the survey revealed remarkably positive sentiments about India's domestic growth story. 67 per cent of wealthy respondents expressed firm bullishness on India's economic prospects, demonstrating strong confidence in the nation's resilience. When specifically asked about GDP projections, 72 per cent of HNIs and UHNIs expect economic growth to remain within the 6-7 per cent range during fiscal year 2027.
Market Performance and Evolving Buyer Composition
Amit Goyal, Managing Director of India Sotheby's International Realty, provided context about recent market performance. He noted that India's luxury housing market delivered strong results throughout 2025 across key urban centers including Delhi-NCR, Mumbai, Goa, and Alibaug. "The year 2026 opened on a note of quiet confidence after a defining year for India's luxury real estate market," Goyal observed, highlighting the sector's robust foundation.
Goyal emphasized that the composition of luxury home buyers has undergone meaningful transformation in recent years. "Alongside established business families, a new generation of wealth creators—startup founders, next-generation entrepreneurs, and senior professionals—entered the market, supported by strong equity gains and a record IPO cycle," he explained. This diversification indicates broader participation beyond traditional wealthy segments.
Structural Demand and Investment Patterns
Ashwin Chadha, CEO of India Sotheby's International Realty, provided deeper insights into the market's fundamentals. "India's growth and wealth creation have moved in lockstep, powering a strong and sustained boom in luxury real estate, backed by resilient capital markets and rising income formalization," Chadha stated. He pointed out that with over 350 billionaires controlling nearly USD 2 trillion in wealth, the demand for bespoke residential assets remains structural rather than cyclical. "Momentum continues but with moderation," Chadha summarized, acknowledging the anticipated cooling while maintaining confidence in long-term prospects.
The survey uncovered several important investment patterns among wealthy individuals:
- 67 per cent of wealthy investors expect annualized real estate returns of up to 15 per cent
- 53 per cent of respondents invested in luxury real estate primarily for capital appreciation
- 47 per cent purchased luxury properties for self-use rather than investment purposes
Evolution of Luxury Real Estate Concepts
Industry leaders provided additional perspectives on how luxury housing concepts have transformed in India. Aakash Ohri, Managing Director and Chief Business Officer of DLF Home Developers Ltd, commented, "The idea of luxury real estate in India has evolved remarkably. Lifestyle and amenities are no longer optional; they are central to the residential experience. Today's affluent buyer seeks not just a home but an ecosystem that mirrors global living standards, offering ease, efficiency, and everyday indulgence." Ohri added that luxury housing has become largely price inelastic, indicating that demand persists despite premium pricing.
Sidharth Chowdhry, Managing Director of Dalcore Projects Pvt Ltd, noted that India's luxury real estate sector is undergoing a paradigm shift. "The market is moving away from traditional notions of opulence to a more evolved definition centered around design pedigree, brand credibility, and curated living," Chowdhry explained. He revealed that branded residences in India command a significant 30-40 per cent premium over non-branded luxury homes, highlighting the growing importance of established brands in the premium segment.
India Sotheby's International Realty remains one of the leading consultants specializing in luxury properties, providing authoritative insights into this exclusive segment of the real estate market. The survey findings collectively suggest that while the luxury housing market may experience some cooling in the coming fiscal year, the fundamental demand remains strong, supported by India's growing wealth creation and evolving consumer preferences for premium residential experiences.
