India’s luxury housing market is entering 2026 with a sense of calm assurance rather than exuberance, shaped by strong economic fundamentals, sustained wealth creation and a buyer base that has grown more selective and sophisticated. The annual Luxury Residential Outlook Survey 2026 by India Sotheby’s International Realty (ISIR) suggests that while the frenzy of recent years has eased, confidence in both India’s economy and premium real estate remains firmly intact.
At the heart of this confidence is a resilient macroeconomic outlook. Despite global uncertainty, 67% of high-net-worth and ultra-high-net-worth individuals surveyed remain bullish on India’s growth story. Nearly three-quarters expect GDP growth to stay in the 6–7% range in FY27, reinforcing the belief that India continues to offer stability in an otherwise volatile world. This optimism has translated into steady interest in real estate, which continues to be viewed as a reliable long-term asset rather than a speculative play.
What has changed is the nature of demand. Buyers are no longer chasing volume or rapid appreciation. Instead, they are prioritising quality, location, and long-term value. According to the survey, most respondents plan to maintain their real estate exposure or make fresh investments, but with greater selectivity. Declining interest rates and improving affordability have helped sustain end-user demand, while investor sentiment remains strongest in residential and premium housing segments. The result is a market that is maturing, disciplined, and less prone to excess.
The momentum built in 2025 has carried into 2026, albeit at a measured pace. Last year saw record sales from listed developers and a surge in high-value transactions across Mumbai, Delhi-NCR, and lifestyle destinations such as Goa and Alibaug. These markets continue to attract wealthy buyers, but motivations are shifting. Luxury homebuyers are now placing greater emphasis on privacy, thoughtful design, wellness amenities and service-led living, rather than sheer scale or speculative upside.
Amit Goyal, Managing Director of India Sotheby’s International Realty, describes 2026 as a year of “quiet confidence.” He notes that the defining feature of the past year was not just strong sales, but a meaningful evolution in buyer composition. Alongside traditional business families, a new generation of wealth creators has entered the luxury housing market. Startup founders, next-generation entrepreneurs and senior professionals, buoyed by equity market gains and a record IPO cycle, are increasingly looking at real estate as a store of permanence. In 2025 alone, 103 Indian companies raised ₹1.76 lakh crore through IPOs, significantly expanding the pool of first-generation wealth.
For these buyers, luxury homes are not just investments but expressions of lifestyle and legacy. Real estate offers what volatile financial assets cannot: physical presence, emotional security and generational continuity. This has pushed demand towards fewer but better assets, reinforcing the premium placed on well-located, well-designed homes with enduring appeal.
The survey also highlights India’s broader wealth creation story. Prime urban luxury homes continue to outperform due to their scarcity and defensibility, particularly in established micro-markets. Second homes, meanwhile, are evolving beyond holiday retreats or passive investments. They are increasingly being viewed as lifestyle anchors, offering flexibility, wellness and personal retreat value alongside financial returns.
Ashwin Chadha, CEO of India Sotheby’s International Realty, points out that India’s growth and wealth creation have moved in tandem. With more than 350 billionaires collectively controlling nearly USD 2 trillion in wealth, demand for bespoke residential assets appears structural rather than cyclical. However, he also notes that the market is entering a phase of moderation. While momentum remains, buyers are more cautious, focusing on assets that offer long-term resilience rather than short-term gains.
This moderation is reflected in price expectations. Over half of the respondents believe luxury residential price growth will cool slightly in FY 2026–27. Yet this has not dampened investment appetite. A majority plan to maintain or even increase their real estate allocations, especially towards city-based luxury homes that can generate rental income and retain long-term value.
At the same time, new concerns are shaping investment decisions. Currency volatility has emerged as a key issue, with many wealthy Indians worried about the rupee’s depreciation against the dollar. This has led to greater interest in diversification, including dollar-denominated assets. Even so, equities remain the most favoured investment avenue, closely followed by physical real estate. The growing adoption of alternative structures such as AIFs, REITs and InvITs has also made real assets the largest combined investment pool for affluent investors.
Another notable trend is the professionalisation of real estate ownership. More than half of those surveyed are considering consolidating their property portfolios, streamlining holdings rather than expanding indiscriminately. Increasingly, wealthy buyers are turning to professional advisors instead of relying solely on local brokers or personal networks, reflecting a more strategic and portfolio-driven approach to property investment.
Taken together, the survey paints a picture of a luxury housing market that is steady, selective and confident. The exuberance of earlier years may have softened, but it has been replaced by clarity and purpose. For India’s wealthy, luxury real estate remains less about chasing the next big jump and more about owning the right asset, in the right place, for the long run.
