Forbes India 15th Anniversary Special

71% of India's ultra-rich want to buy luxury property in 2024

Goa remains the top choice for holiday homes and returns; commercial property, agricultural land and farmhouses are the ultra-rich's other preferred real estate investments

Fazal Rahim
Published: Jan 19, 2024 01:25:17 PM IST
Updated: Mar 14, 2024 06:04:29 PM IST

71% of India's ultra-rich want to buy luxury property in 2024Goa remains the most preferred destination for a holiday home, as about 35 percent of wealthy individuals chose to buy a holiday home in the state. Image: Shutterstock

The year 2023 has been very rewarding for India’s ultra-rich. This is evident from Sotheby’s International Realty’s Luxury Outlook 2024, where 71 percent of India’s high and ultra-high-net-worth individuals expressed their intentions to buy luxury real estate in the next 12 to 24 months.   

Capital appreciation is the primary reason behind the desire for luxury real estate among the rich Indians. As per Luxury Outlook 2024, 44 percent of individuals want to invest in luxury estate because of capital appreciation. Lifestyle upgrade is the second big reason, as 23 percent of the individuals expressed their desire to buy luxury property, including holiday homes, farmhouses, and agricultural land, to upgrade their lifestyle with their increasing wealth. Creating assets for the next generation and income generation are the next big motivations for investment in luxury property.   

In its annual survey, Sotheby’s International Realty found that India’s ultra-rich are very optimistic about India's economic trajectory and prospects in 2024. Seventy-nine percent of people in the survey showed their confidence in the current trajectory of India’s economy, which was 59 percent last year. This optimism is a big reason behind the significant reduction in the transaction time in a luxury real estate deal.   

“What we have observed as a trend is what used to really take 12 to 18 months to conclude the purchase of a particular real estate, that time period has really got crunched,” says Ashwin Chadha, CEO of India Sotheby’s International Realty. “We are now seeing transactions getting concluded in even one month’s time,” he adds.

According to the Luxury Outlook report, there has been an increase of about 40 percent in luxury real estate prices in the last 24 months. However, buyers' optimism remains strong as they hope for a reduction in interest rates by RBI in 2024. Amit Goyal, managing director, India Sotheby’s International Realty, said in a statement that the rising economic momentum is reflected in record-breaking housing sales numbers in Indian real estate in 2023 and an all-time high stock market. He says that the top end of the real estate market will benefit the most in the next 12-24 months.  

“The affluent class is expected to nearly double to 100 million people within three years, according to Goldman Sachs Group Inc. India’s ultrawealthy are growing. The robust start-up ecosystem and a growing number of unicorns have added to the swelling ranks of the super-rich,” Goyal adds.  

Also read: More people are buying ultra luxury homes in India. Here's why


The survey reflects that 83 percent of the Indian elite own multiple luxury properties. Besides commercial property, which forms about 34 percent of investments, holiday homes (25 percent) are the ultra-rich’s second most preferred real estate investment. Agricultural land (21 percent) and farmhouses (20 percent) are India's wealthy people's next significant real estate investments.   

Goa remains the most preferred destination for a holiday home, as about 35 percent of wealthy individuals chose to buy a holiday home in the state. The sunny beaches, hills, and lifestyle of Goa are the most significant appeal for individuals, but the return on the investments in holiday homes is also attracting investors and individuals.   

“Goa started with the second home holiday home objective being fulfilled. In this demand for holiday homes, the prices have gone up in Goa. Now, a lot of people are investing in it not just for end-use holiday homes but also for return elements. The returns that Goa has offered in the last 18 months have been in the range of about 70 to 80 percent,” says Chadha.