High-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) showed substantial economic optimism in the India Sotheby’s International Realty (ISIR) annual Luxury Outlook Survey 2024, with a staggering 79% expressing confidence in the country’s positive trajectory for 2023-24, up from 59% the previous year.
This positive outlook also applies to the real estate industry. 71% of respondents stated they intended to purchase real estate in the next 12 to 24 months, demonstrating strong confidence in the market despite a nearly 40% increase in property prices over the previous 24 months and an increase in mortgage rates.
The main reason for real estate investment (44%), capital appreciation, has surpassed lifestyle upgrades. It indicates that investors are returning to the market with an emphasis on long-term appreciation.
India is more confident than ever in directing its destiny. The International Monetary Fund projects that by 2027, the fifth-largest economy in the world will rise to the third rank. The country’s central bank, the RBI, forecasts 7% GDP growth in 2024. An all-time high in the stock market and record-breaking home sales in Indian real estate in 2023 are indicators of the growing economic momentum. The top end of the real estate market will benefit the most over the next 12 to 24 months. Goldman Sachs Group Inc. projects that the number of people in the affluent class will almost double to 100 million over the next three years. India’s ultrawealthy are growing. The ranks of the ultra-rich have continued to rise due to the strength of strat-up ecosystems and the increasing number of unicorns. Amit Goyal, MD of India Sotheby’s International Realty. “Our Luxury Outlook survey results show a renewed and heightened interest among investors who now view real estate as a compelling avenue for long-term wealth creation.”
“The resilience and potential of the Indian economy are reflected in the remarkable shift in economic sentiment we are witnessing. The significant rise in fresh luxury project launches in the top seven cities in 2023 is unsurprising. Additionally, attitudes are changing consistent with real estate’s enduring value and potential for long-term financial growth. “We think investors are strategically positioning themselves for wealth accumulation and creating multi-generational wealth through real estate investments,” says India’s Sotheby’s International Realty CEO Ashwin Chaddha.
Regarding home loan interest rates, the Reserve Bank of India (RBI) plans to begin lowering rates in 2024, according to 56% of HNIs and UHNIs, indicating a promising future for mortgages and financing.
A startling 83% of wealthy Indians, according to the survey, own several luxury homes, indicating a trend of diversified real estate portfolios among the affluent.
In addition to their primary residences, 34% of respondents showed off their commercial real estate, 25% their vacation homes, 21% their agricultural land, and 20% their farmhouses.
Other noteworthy results showed that Goa was the preferred destination for 35% of holiday home buyers, indicating the long-lasting appeal of Goa’s lifestyle to Inia’s affluent. The desire to purchase real estate abroad stayed steady at 12%, with the USA and Dubai, United Arab Emirates, continuing to be the top destinations.
A desire to consolidate their portfolios and concentrate on higher-quality properties and assets that generate income was indicated by 43% of UHNI and HNI respondents. To research and view properties, 34% of UHNIs and HNIs have switched to using digital tools, such as walkthroughs and 3-D virtual reality, highlighting the impact of digital transformation even at the top of the luxury housing market.