NEW DELHI: A recent survey by property consultant India Sotheby’s International Realty indicates that demand and prices for luxury homes may decline in major cities in the upcoming fiscal year, with 56% of wealthy respondents agreeing.
The survey, conducted amongst nearly 700 high net worth individuals (HNIs) and ultra HNIs, aimed to evaluate their perspectives on India’s economic growth, investment strategies, and the luxury housing market.
In its report, ‘The India Luxury Residential Outlook 2026’, released on Sunday, India Sotheby’s International Realty (ISIR) revealed that 67% of HNIs and UHNIs remain optimistic about India’s economic prospects despite facing global challenges.
Furthermore, 72% of HNIs and UHNIs anticipate GDP growth to stay within the 6-7% range in FY27. When asked about the luxury residential real estate market’s trajectory for 2026-2027, 56% of respondents expressed belief in a potential market slowdown.
“Sentiments indicate a cooling market ahead, with over half expecting a shift in the luxury real estate landscape in FY27,” stated the report.
Amit Goyal, Managing Director of ISIR, noted the strong performance of India’s luxury housing market in 2025, particularly in cities like Delhi-NCR, Mumbai, Goa, and Alibaug. “The year 2026 commenced with a sense of quiet confidence following a landmark year for luxury real estate,” he added, while emphasizing the evolving buyer demographic.
According to Goyal, a new wave of wealth creators, including startup founders and next-generation entrepreneurs, is entering the market, buoyed by strong equity returns and a record IPO cycle.
ISIR stands as a leading consultancy for luxury real estate.
Ashwin Chadha, CEO of ISIR, remarked, “India’s growth and wealth creation are intertwined, fueling a robust surge in luxury real estate, supported by resilient capital markets and increased income formalization.” With over 350 billionaires controlling nearly USD 2 trillion in wealth, the demand for high-end residential properties remains structurally robust, not cyclical.
“While we see ongoing momentum, we can also expect moderation,” Chadha mentioned.
Additionally, the ISIR survey found that 67% of affluent investors anticipate annual real estate returns of up to 15%. The report indicated that 53% of respondents invested in luxury real estate for capital appreciation, while 47% opted to purchase for personal use.
Commenting on the study, Aakash Ohri, Managing Director and Chief Business Officer of DLF Home Developers Ltd, stated, “The concept of luxury real estate in India has transformed significantly. Lifestyle and amenities have become essential to the residential experience. Today’s wealthy buyers are seeking not just a home, but a holistic living ecosystem that reflects global standards of comfort and luxury.”
Luxury housing is increasingly price inelastic, he added.
Sidharth Chowdhry, Managing Director of Dalcore Projects Pvt Ltd, noted that luxury real estate in India is witnessing a shift from traditional definitions of opulence to a more sophisticated understanding, focusing on design quality, brand reliability, and curated living experiences.
He observed that branded residences in India attract a premium of 30-40% over non-branded properties.
