India's Luxury Housing Market: HNIs Predict Cooling in FY27

NEW DELHI: Demand and prices of luxury homes may cool down across major cities in the next fiscal year, as indicated by 56% of wealthy respondents in a survey conducted by property consultant India Sotheby's International Realty (ISIR).

The survey included nearly 700 high net worth individuals (HNIs) and ultra HNIs to assess their sentiments towards India's economic growth prospects, investment strategies, and outlook for the luxury housing market.

In its latest report, 'The India Luxury Residential Outlook 2026,' released on Sunday, ISIR mentioned that 67% of HNIs and UHNIs remain firmly bullish on India's growth story despite global headwinds. In terms of economic outlook, 72% of HNIs and UHNIs expect GDP growth to remain in the 6-7% range in FY27.

When asked whether the current strength in the luxury residential real estate market would moderate in 2026-2027, the survey found that 56% of respondents replied in the affirmative. 'Sentiments suggest a cooling of the market ahead, with more than half anticipating a moderation in luxury real estate outlook in FY27,' the report stated.

Amit Goyal, Managing Director of ISIR, noted that India's luxury housing market performed well in 2025 across major cities like 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,' he added.

Goyal highlighted that buyer composition has also evolved meaningfully. '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 said.

ISIR is one of the leading real estate consultants for luxury properties. Ashwin Chadha, CEO of ISIR, said, '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 formalisation.'

With over 350 billionaires controlling nearly USD 2 trillion in wealth, Chadha said the demand for bespoke residential assets remains structural, not cyclical. 'Momentum continues but with moderation,' he added.

Among other findings of the survey, ISIR reported that 67% of wealthy investors expect annualized real estate returns of up to 15%. The report mentioned that 53% of respondents invested in luxury real estate for capital appreciation, while 47% purchased for self-use.

Commenting on the report, Aakash Ohri, Managing Director and Chief Business Officer of DLF Home Developers Ltd, said, '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.'

Luxury housing is now largely price inelastic, he added. Sidharth Chowdhry, Managing Director of Dalcore Projects Pvt Ltd, said the luxury real estate market in India is undergoing a paradigm shift, moving away from traditional notions of opulence to a more evolved definition centered around design pedigree, brand credibility, and curated living. He noted that branded residences in India command a 30-40% premium over non-branded homes.