The report indicates a significant surge in high-end demand, with 42% of Bengaluru’s total ₹10 crore+ luxury home sales over the last four years occurring in FY25 alone. This growth is attributed to factors such as Bengaluru’s thriving tech economy, rapid improvements in infrastructure, and the increasing lifestyle aspirations of urban India’s affluent population.

Demand is particularly strong for luxury homes priced between ₹10–12 crore, as they offer a combination of value and exclusivity. Hebbal has emerged as the leading market for these high-value apartments, capturing 22% of the total sales value. Other areas in Bengaluru experiencing increased interest in luxury apartments include Domlur, Sudhamnagar, and Bomanahalli.

Apartments with sizes ranging from 5,000–7,000 sq. ft. are currently in high demand, reflecting a preference for spacious, upscale living.

Ashwin Chadha, CEO of India Sotheby’s International Realty, commented on this trend, stating, “Bengaluru’s luxury housing market has entered a new league. We’re seeing discerning buyers- especially CXOs, startup founders, and global Indians, investing not just in a home, but in a lifestyle. The demand today is driven as much by aspiration as by strategic asset allocation. What’s equally encouraging is the rise of new luxury hubs across the city. That said, Bengaluru’s infrastructure will need to keep pace with this rapid evolution. Going forward, we expect more steady and sustainable appreciation in prices as the market matures and becomes even more quality-conscious.”

The report suggests that this historic growth is fueled by rising demand from high-net-worth individuals (HNIs), startup founders, CXOs, and global Indians who are increasingly seeking aspirational properties that provide exclusivity, prime locations, and a high quality of life.

Also Read: Century Real Estate Reports Strong Growth Amid Rising Demand for Luxury Properties in Bengaluru

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While optimism about economic growth has dipped from 79% in 2024 to 71% in 2025, the enduring appeal of real estate as a stable, wealth-building asset remains evident. Most respondents continue to see India as the fastest-growing major economy, with GDP growth projections between 6% and 6.5%.

Capital Appreciation a Key Driver

Capital appreciation remains a pivotal factor for real estate investments, with 55% of respondents citing it as the primary motivation, an increase from 44% last year. Almost half expect returns between 12% and 18%, while 38% anticipate returns below 12%. Fewer than 15% expect returns exceeding 18%, reflecting tempered expectations after several years of robust market performance.

“India’s luxury real estate market is set for continued growth, albeit with cautious optimism,” said Amit Goyal, Managing Director of India Sotheby’s International Realty. “Demand for bespoke luxury assets, including spacious farmhouses and gated villas in hill and beach destinations, is expected to be a key trend in 2025.”

Surge in Second Homes and International Properties

The survey also highlighted growing interest in second homes, with 55% of respondents favoring properties within a four-hour drive for convenience. Popular choices include hill and beach destinations.

International real estate interest has risen notably, with 22% of respondents expressing plans to invest abroad, up from 10-11% historically. Dubai has overtaken London as the top global choice, followed by U.S. cities.

Luxury Real Estate as a Lifestyle and Investment Asset

Luxury real estate remains a preferred investment avenue for lifestyle upgrades and wealth creation. The number of UHNIs in India reached 13,600 in 2024, with a projected 50% increase by 2028. Rising affluence and the growing influence of young wealth creators under 40 are shaping the demand for high-end properties.

“Luxury real estate is no longer just a status symbol but a robust investment avenue,” said Ashwin Chadha, CEO of India Sotheby’s International Realty. “From self-built bungalows to high-rise apartments and gated villas, the segment has evolved to offer world-class amenities and assured quality.”

Broader Economic and Market Trends

Despite concerns over inflation, 71% of respondents expect interest rates to ease gradually. Meanwhile, 36% of HNIs plan to allocate surplus funds to real estate in the next two years, highlighting its role as a tangible asset amid market volatility.

As India’s luxury real estate market continues to evolve, it reflects the country’s growing wealth and aspirations, offering opportunities for both lifestyle enhancements and capital gains.

Also Read: Akshay Kumar real estate

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Wealth Growth and Global Standing

India is not only seeing a rise in the number of wealthy individuals, but its global influence is also expanding. As of 2024, India ranks 6th globally in terms of UHNI population and 3rd in Asia, trailing only China and Japan. The number of UHNIs in the country has reached 13,600, marking a 6% growth from the previous year, with expectations that the population will increase by 50% by 2028, significantly outpacing the global growth average of 30%. Meanwhile, India is home to over 850,000 HNIs, and this figure is expected to double to 1.65 million by 2027. Notably, 20% of India’s millionaires are under 40, signaling the growing influence of younger wealth creators.

Drivers of Wealth Creation

The sources of wealth in India are diverse, with several key sectors contributing to the rise of the country’s affluent population:

• Tech and Start-ups: Nearly 30% of new HNIs have amassed their fortunes through technology, fintech, and start-ups.
• Manufacturing: The “Make-in-India” initiative has fueled industrial wealth, accounting for 21% of the UHNI economy.
• Real Estate: Luxury and commercial real estate, particularly in urban areas, contribute 15% to the UHNI wealth pool.
• Equities: The Indian stock market has been a major driver of wealth, with equity-based wealth growing by 18% year-on-year.

Real Estate and Second Homes

Real estate remains a cornerstone of wealth allocation for HNIs and UHNIs in India:

• Luxury Homes: The share of luxury homes in total sales has surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in cities like Mumbai, Delhi, and Bengaluru are highly sought after, with emerging second-home destinations such as Goa, Alibaug, and Jaipur gaining popularity.
• International Investments: Around 14% of UHNIs own properties abroad, particularly in cities like Dubai, London, and Singapore. The average international property investment surpassed INR 12 crore ($1.44 million) in 2024.
• Sustainability Focus: Green buildings and ESG-compliant real estate are attracting growing interest among affluent buyers who prioritize sustainability.

Changing Spending Patterns

The affluent in India are shaping global luxury consumption trends:

• Luxury Cars: Over 37% of Indian HNIs purchased high-end vehicles in 2024, contributing to record sales for brands like Lamborghini, Porsche, and Rolls Royce.
• Travel and Experiences: UHNIs are spending an average of INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and exclusive experiences.
• Jewelry and Art: India is the 5th largest market for luxury watches and bespoke jewelry, with increasing demand for prestigious brands like Cartier and Patek Philippe.

Investment Preferences and Future Outlook

The investment landscape of India’s wealthy is shifting towards diversification:

• Portfolio Composition: 32% of wealth is allocated to real estate, 20% to private equity and start-ups, particularly in AI, blockchain, and cleantech, and 8% of UHNIs are investing in cryptocurrencies, despite regulatory uncertainty.
• Global Diversification: Nearly 25% of Indian UHNIs are expanding their investments abroad, with a focus on North America and Europe. Additionally, over 40% have established family offices to manage wealth, succession planning, and philanthropy.

Emerging Trends

Several emerging trends are shaping the future of India’s wealthy:

• Millennial Wealth Creators: Over 15% of HNIs are under 30, driven by the tech sector, start-up unicorns, and IPOs. This number is expected to rise to 25% by 2030 as younger entrepreneurs increasingly drive wealth creation.
• Alternate Citizenship and Global Mobility: Approximately 10% of UHNIs acquired alternate citizenships in 2024, with destinations like Portugal, Malta, and the UAE offering global mobility and tax benefits.
• Health and Wellness: High-net-worth families are investing heavily in wellness-focused real estate, customized healthcare, and anti-aging solutions, alongside increasing investments in preventive healthcare and luxury wellness retreats.

India’s Growing Global Influence

India’s wealthy are now prominent players on the global stage:

• Rising Economic Prominence: India’s UHNI population grew by 6% in 2024, while China’s growth slowed to just 2%, signaling India’s rising economic prominence.
• Philanthropy: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, focusing on education, healthcare, and sustainability.
• Luxury Market Growth: As India’s luxury goods market grew by 12% in 2024, global brands are increasingly tailoring their offerings to Indian tastes, including bespoke couture and experiential services.

Conclusion

The rise of HNIs and UHNIs in India is not just a sign of growing wealth but also a reflection of the country’s economic transformation. From reshaping the luxury market to driving philanthropic initiatives and embracing new investment opportunities, India’s affluent are playing an integral role in shaping the global economy. With a rising cohort of young wealth creators, a booming tech sector, and increasing global influence, India’s journey toward wealth dominance is just beginning.

Also Read: MahaRERA Dismisses Broker’s Complaint for Brokerage Payment, Cites Lack of Legal Provision

The post The Rise of Indian HNIs and UHNIs in 2024: A New Era of Wealth and Influence appeared first on Square Feat India.

By Varun Singh

A large majority of the HNIs are proposing to buy property in the next two years reflecting a strong and decisive turnaround in the luxury real estate segment, revealed a survey conducted by India Sotheby’s International Realty.

The survey elicited responses from over 200 HNIs and UHNIs to gauge the mood of the luxury home buyer across India’s top 8 cities — Delhi-NCR, Mumbai, Kolkata, Bengaluru, Hyderabad, Pune, Chennai, and Goa.

Out of the 76 per cent who responded in the affirmative to buying real estate in 2022, 89 per cent said they would look to buy Residential Real Estate vis-a-vis 11 per cent who opted for commercial real estate. This translates to 67 per cent of the respondents wanting to buy luxury homes, going forward.

“An overwhelming 67% per cent of respondents said they would look to buy luxury residential real estate in 2022. On the key motivation to buy another property, 46 per cent of the respondents said, the biggest reason for them to buy property in the pandemic years was a lifestyle upgrade. About 31 per cent of HNI’s also said the biggest motivation to buy real estate in the last 18 months was ‘a good investment opportunity’, reflecting the emergence of bullish outlook that HNIs have on luxury real estate and their expectation of home prices to rise.” said Sotheby’s Luxury Housing Outlook-2022.

Within the choices of buying residential real estate, a city apartment continued to top the charts with 34 per cent saying they would look to buy a bigger city-based apartment. On the other hand, more than 1/4th of the respondents (29 per cent) expressed their desire to acquire a holiday home.

“This remains one of the biggest aspirations for the HNIs, a change we see as significant” observed Amit Goyal, CEO of India Sotheby’s International Realty.

Goyal further said, “The fact that people picked “a good investment opportunity, as a strong reason for buying luxury real estate points to a bullish outlook on luxury home prices. Unlike some of the developed countries, where the price increase frenzy seems to be cooling off, in India, I believe, we are at the start of a secular price rise. We expect low-rise homes in the thriving urban centers, especially in Delhi NCR and Mumbai, and the vacation home destination of Goa, to be the outperformers of 2022.”

As regards the money the HNIs are willing to shell out on another property, the maximum response was received for a luxury city apartment or villa were for the price range of Rs 10 – 25 crore with 69 per cent respondents picking this bracket.

The sweet spot of pricing for a luxury “holiday home” was between Rs 5-10 crore with as many as 71 per cent of respondents opting for this price band. About 29 per cent of the respondents were even willing to spend more than Rs 10 crore for the right vacation home.

“WORK FROM HOME” FINDINGS
The survey was completed before the onset of the third wave of Omicron surge, but it clearly showed that the hybrid work model is here to stay. Almost, 65 per cent of the respondents answered, they do not see themselves going back to the physical office, all 5 days of the week. “This is a clear indication that the desire to upgrade homes will remain a big motivator in 2022,” the survey found.

The extensive survey also revealed that 28 per cent of the HNIs had gone back to the office – full time, prior to the third wave of COVID. Almost half of the respondents though, continue to be in a “hybrid” work mode, spending anywhere between 1-4 days working from home. Also, about 15 per cent seem to have made a complete switch to “work from home” – which was negligible in India, pre-pandemic.

Real estate agents/advisors were the top choices for HNIs when it comes to the source of information for decision-making on buying real estate in India. However, information gleaned from the internet is catching up as a strong source of information for HNI’s when it comes to real estate buying decisions.

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