India’s luxury residential real estate sector heads into 2026 with quiet confidence, according to the annual Luxury Residential Sector Outlook Survey by India Sotheby’s International Realty. Strong economic fundamentals, increased wealth creation and a savvy buyer base support this stable outlook.
The record sales momentum of 2025 continued, with most respondents planning to maintain or cautiously increase their investments in luxury real estate. Falling interest rates, improving affordability and steady end-user demand make real estate a preferred long-term asset among wealthy Indians.
Here’s what the luxury residential sector outlook survey reveals:
- 53% of those surveyed invested in new projects to enhance their capital, while 47% did so for their own use.
- 75% said they had not purchased a second home or vacation home in the past 12 months, while 25% said they had.
- 46% of those who bought a second home in the last 24 months chose a farm on the outskirts of the city, 33% bought in the hills, 21% in beach destinations and 7% in spiritual destinations.
- 56% expect the current strength of the luxury residential real estate market to moderate in 2026-2027.
- 57% say they will continue to invest in the real estate market in 2026-2027.
- 31% of those looking to invest in the real estate market in 2026-27 are looking to purchase their primary residence, while 30% want to invest in real estate assets.
- 67% said they expect annualized returns greater than 15% for their real estate investments
The report states that market players are focusing on quality, privacy and lifestyle features in major urban and lifestyle destinations like Mumbai, Delhi-NCR, Goa and Alibaug. Buyers are moving away from speculative investments toward properties that offer lasting value and refined living experiences. This marks an evolution in buyer behavior, with privacy, design excellence, wellness and service-oriented living setting new standards in luxury.
The makeup of buyers has evolved, with startup founders, next-generation entrepreneurs and senior professionals entering the market, supported by strong equity gains and a record IPO cycle. In 2025, 103 Indian companies raised Rs 1.76 lakh crore through IPOs.
Amit Goyal, managing director of India Sotheby’s International Realty, added that real estate offers permanence to these buyers, combining capital efficiency, lifestyle value and generational continuity. Demand favors quality over scale, with privacy, design, wellness and service-oriented living defining a refined luxury market. This focus on non-financial attributes reflects the broader evolution of Indian luxury real estate as a lifestyle anchor and symbol of generational stability.
Ashwin Chadha, CEO of India Sotheby’s International Realty, said growth and wealth creation in India have led to a strong and sustained boom in luxury real estate, supported by resilient capital markets and increasing formalization of income. Demand for bespoke residential assets remained structural and non-cyclical.
