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Demand and pricing momentum in India's luxury residential market could soften in the next financial year, with over half of affluent buyers anticipating a moderation, according to a survey by India Sotheby's International Realty (ISIR). While 56 per cent of high net worth individuals (HNIs) and ultra HNIs expect the current strength in luxury housing to cool during FY27, broader confidence in India's economic growth remains intact. A majority of respondents continue to back the country's long-term growth trajectory, supported by resilient capital markets and expanding wealth creation. The findings suggest that although buyer sentiment remains positive, the luxury housing segment may move into a phase of measured consolidation rather than aggressive expansion over the coming year.
India's luxury residential property market is likely to witness a degree of moderation in demand and price growth during FY27, even as confidence among wealthy buyers in the country's broader economic prospects remains strong. This outlook emerges from a recent survey conducted by India Sotheby's International Realty (ISIR), which captured the views of nearly 700 high net worth individuals and ultra HNIs across the country. Advertisement
According to the survey, 56 per cent of respondents believe that the current momentum in the luxury housing segment may ease over the 2026-27 period. The findings form part of ISIR's latest report, The India Luxury Residential Outlook 2026, released over the past week. Despite expectations of moderation in property markets, 67 per cent of participants said they remain bullish on India's long-term growth story, even amid global economic uncertainties.
In terms of macroeconomic outlook, close to three-fourths of surveyed HNIs and UHNIs expect India's GDP growth to remain within the 6-7 per cent range in FY27. This optimism is reflected in investment behaviour as well, with real estate continuing to feature prominently in wealth allocation strategies. Around 67 per cent of wealthy investors expect annualised real estate returns of up to 15 per cent, underscoring continued faith in the asset class despite anticipated cooling.
ISIR's leadership noted that the luxury housing market delivered a strong performance during 2025 across key markets such as Delhi-NCR, Mumbai, Goa and Alibaug. The firm also observed a notable shift in buyer composition. Alongside traditional business families, the market has seen increased participation from startup founders, next-generation entrepreneurs and senior professionals, supported by equity market gains and an active IPO environment.
Industry stakeholders echoed the view that demand remains structurally robust, even if growth becomes more measured. ISIR's management highlighted that India's expanding billionaire base and growing concentration of wealth continue to support demand for bespoke residential assets. Meanwhile, developers pointed to evolving buyer preferences, where lifestyle offerings, design quality and branded residences play a central role. Branded luxury homes, in particular, were noted to command significant premiums over non-branded developments, reinforcing the segment's resilience even in a moderating market environment.
Source - PTI
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