57% would continue to invest in real estate, 56% think housing market will cool down in 2026-27: ISIR survey

India's luxury residential real estate sector is entering 2026 with quiet confidence, according to the annual Luxury Residential Outlook Survey by India Sotheby’s International Realty. Strong economic fundamentals, increased wealth creation, and a discerning buyer base support this steady outlook. 

Momentum from 2025's record sales continued, with most respondents planning to maintain or cautiously increase their investments in luxury real estate. Declining interest rates, improving affordability, and consistent end-user demand keep real estate a preferred long-term asset among wealthy Indians.

Here’s what the Luxury Residential Outlook Survey found:

• 53% of respondents invested in new projects for capital appreciation, while 47% did so for self use
• 75% said they did not purchase a second or a holiday home in the last 12 months while 25% said they did
• 46% of those who bought a secondary home in the last 24 months, picked a farmhouse on city periphery, 33% bought in the hills, 21% in beach destinations and 7% in spiritual destinations
• 56% expected the current strength in the luxury residential real estate market to moderate in 2026-2027
• 57% said they would continue to invest in real estate market in 2026-27
• 31% of those who want to invest in real estate market in 2026-27 are looking to buy their primary residence, while 30% want to invest in real estate assets
• 67% said they expect annualised returns of over 15% in their real estate investments

The report stated that market participants focus on quality, privacy, and lifestyle features in prime urban and lifestyle destinations like Mumbai, Delhi-NCR, Goa, and Alibaug. Buyers are shifting from speculative investments to properties offering lasting value and refined living experiences. This marks an evolution in buyer behaviour, with privacy, design excellence, wellness, and service-led living setting new standards for luxury. 

Buyer composition 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 corporates raised Rs 1.76 lakh crore through IPOs.

Amit Goyal, Managing Director at India Sotheby’s International Realty, added that real estate offered permanence for these buyers, blending capital efficiency, lifestyle value, and generational continuity. Demand favoured quality over scale, with privacy, design, wellness, and service-led living defining a refined luxury market. This focus on non-financial attributes reflects the broader evolution of Indian luxury property as a lifestyle anchor and symbol of generational stability.

Ashwin Chadha, CEO of India Sotheby’s International Realty, said India's growth and wealth creation have driven a strong and sustained boom in luxury real estate, supported by resilient capital markets and rising income formalisation. Demand for bespoke residential assets remained structural, not cyclical.