India's Luxury Housing Market Set to Cool Down in FY27, Survey Reveals

Demand and prices of luxury homes may cool down across major cities in the next fiscal year, as indicated by 56 per cent of wealthy respondents in a survey conducted by property consultant India Sotheby's International Realty (ISIR). The consultant surveyed nearly 700 high net worth individuals (HNIs) and ultra HNIs to gauge 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 per cent of HNIs and UHNIs remain bullish on India's growth story despite global headwinds. When asked about the economic outlook, 72 per cent of HNIs and UHNIs expect GDP growth to remain in the 6-7 per cent range in FY27.

When questioned about the current strength in the luxury residential real estate market and whether it would moderate in 2026-2027, the survey found that 56 per cent of respondents replied in the affirmative. 'Sentiments suggest a cooling of the market ahead, with more than half anticipating a moderation in the 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 the buyer composition has evolved significantly, with a new generation of wealth creators, including startup founders, next-generation entrepreneurs, and senior professionals entering the market, supported by strong equity gains and a record IPO cycle.

Ashwin Chadha, CEO of ISIR, emphasized that India's growth and wealth creation have moved in lockstep, driving a strong and sustained boom in luxury real estate, backed by resilient capital markets and rising income formalization. With over 350 billionaires controlling nearly USD 2 trillion in wealth, he said the demand for bespoke residential assets remains structural, not cyclical. 'Momentum continues but with moderation,' Chadha said.

Among other findings of the survey, ISIR reported that 67 per cent of wealthy investors expect annualized real estate returns of up to 15 per cent. The report mentioned that 53 per cent of respondents invested in luxury real estate for capital appreciation, while 47 per cent 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.' He added that luxury housing is now largely price inelastic.

Sidharth Chowdhry, Managing Director of Dalcore Projects Pvt Ltd, noted that 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 mentioned that branded residences in India command a 30-40 per cent premium over non-branded homes.