HNIs shift focus from volume to ultra-luxury homes; Diwali brings renewed momentum to premium real estate
Ahead of the festive season, luxury real estate continues to see robust demand despite recent policy changes and increases in Ready Reckoner (RR) rates. Adding to the optimism, the Reserve Bank of India’s recent 50-basis-point repo rate cut to 5.5% has made home loans more attractive, giving potential buyers additional incentive to invest.
- Oct 21, 2025,
- Updated Oct 21, 2025 5:00 PM IST
India’s high-net-worth individuals (HNIs) are reshaping the luxury property market, moving decisively from volume-driven investments to ultra-luxury real estate that blends exclusivity, design sophistication, and long-term wealth preservation. According to Vishal Vincent Tony, Managing Director of Aratt Developers and Founder of Ayatana Hospitalities Pvt. Ltd., this shift is not just a trend but a structural evolution in how affluent buyers view real estate.
“In 2025, over 55% of HNIs cited capital appreciation as their key motivation for buying luxury real estate, compared to 44% in 2024,” Tony said. “In markets like Mumbai and Bengaluru, luxury housing sales have seen double-digit growth in the first half of the year, reflecting sustained demand even amid broader market headwinds.”
Tony said that today’s HNIs are no longer chasing volume or quick flips. Instead, they are looking for exclusivity, privacy, and legacy value — aspects that ultra-luxury properties offer in abundance. “These buyers aren’t just acquiring homes; they’re creating tangible legacies,” he explained. “Ultra-luxury assets combine comfort, architectural excellence, and cultural significance with long-term wealth preservation in a way volume properties rarely can.”
This evolving mindset, Tony added, mirrors global patterns where investors are prioritizing quality over quantity. “At Aratt, we’ve seen this shift firsthand,” he said. “Buyers today want bespoke living experiences, world-class amenities, and the assurance that their investment will stand the test of time — financially, aesthetically, and emotionally.”
Luxury market stays strong
Ahead of the festive season, luxury real estate continues to see robust demand despite recent policy changes and increases in Ready Reckoner (RR) rates. Tony pointed out that while Maharashtra’s RR rates have risen by 3.9%, property registrations remain strong. “Revenue collections have already reached nearly half of the annual target, which clearly signals continued buyer confidence,” he said.
Adding to the optimism, the Reserve Bank of India’s recent 50-basis-point repo rate cut to 5.5% has made home loans more attractive, giving potential buyers additional incentive to invest. Developers, too, are leveraging festive sentiment with Diwali offers and incentives, such as 3–7% upfront savings, to maintain market momentum.
“In essence,” Tony said, “while policy changes have introduced new considerations, buyers remain driven by long-term value, exclusivity, and lifestyle enhancement. The desire for differentiated living and portfolio diversification continues to outweigh short-term policy impacts.”
With rising interest in high-end residential spaces and an increasing focus on legacy creation, Tony believes Diwali 2025 could mark another milestone season for India’s luxury real estate. “From what we’re seeing on the ground,” he concluded, “this festive period is shaping up to be one of the strongest yet for ultra-luxury property investments.”
India’s high-net-worth individuals (HNIs) are reshaping the luxury property market, moving decisively from volume-driven investments to ultra-luxury real estate that blends exclusivity, design sophistication, and long-term wealth preservation. According to Vishal Vincent Tony, Managing Director of Aratt Developers and Founder of Ayatana Hospitalities Pvt. Ltd., this shift is not just a trend but a structural evolution in how affluent buyers view real estate.
“In 2025, over 55% of HNIs cited capital appreciation as their key motivation for buying luxury real estate, compared to 44% in 2024,” Tony said. “In markets like Mumbai and Bengaluru, luxury housing sales have seen double-digit growth in the first half of the year, reflecting sustained demand even amid broader market headwinds.”
Tony said that today’s HNIs are no longer chasing volume or quick flips. Instead, they are looking for exclusivity, privacy, and legacy value — aspects that ultra-luxury properties offer in abundance. “These buyers aren’t just acquiring homes; they’re creating tangible legacies,” he explained. “Ultra-luxury assets combine comfort, architectural excellence, and cultural significance with long-term wealth preservation in a way volume properties rarely can.”
This evolving mindset, Tony added, mirrors global patterns where investors are prioritizing quality over quantity. “At Aratt, we’ve seen this shift firsthand,” he said. “Buyers today want bespoke living experiences, world-class amenities, and the assurance that their investment will stand the test of time — financially, aesthetically, and emotionally.”
Luxury market stays strong
Ahead of the festive season, luxury real estate continues to see robust demand despite recent policy changes and increases in Ready Reckoner (RR) rates. Tony pointed out that while Maharashtra’s RR rates have risen by 3.9%, property registrations remain strong. “Revenue collections have already reached nearly half of the annual target, which clearly signals continued buyer confidence,” he said.
Adding to the optimism, the Reserve Bank of India’s recent 50-basis-point repo rate cut to 5.5% has made home loans more attractive, giving potential buyers additional incentive to invest. Developers, too, are leveraging festive sentiment with Diwali offers and incentives, such as 3–7% upfront savings, to maintain market momentum.
“In essence,” Tony said, “while policy changes have introduced new considerations, buyers remain driven by long-term value, exclusivity, and lifestyle enhancement. The desire for differentiated living and portfolio diversification continues to outweigh short-term policy impacts.”
With rising interest in high-end residential spaces and an increasing focus on legacy creation, Tony believes Diwali 2025 could mark another milestone season for India’s luxury real estate. “From what we’re seeing on the ground,” he concluded, “this festive period is shaping up to be one of the strongest yet for ultra-luxury property investments.”