By Indian high and ultra-high net worth individuals remain unfazed by the 40% surge in property prices since the onset of the pandemic. According to a survey by Sotheby’s, as much as 71% of them are inclined to invest in this asset class over the next 12-24 months.
Investment Trends
- Preference for Property: Despite the rise in prices, a significant portion of affluent individuals view real estate as an attractive investment opportunity. Among them, 44% prioritize capital appreciation when considering property acquisition in the coming years, surpassing lifestyle enhancement and income generation.
- Long-Term Wealth Creation: The survey reveals a growing sentiment among investors to hold onto properties for extended periods, aiming to build wealth that can span multiple generations. Many affluent Indians already own multiple properties, reflecting their strategic approach to wealth accumulation through real estate investments.
Insights from Sotheby’s
Ashwin Chaddha, CEO of India Sotheby’s International Realty, emphasizes a shift in investor sentiment towards recognizing the enduring value and potential financial growth of real estate. He suggests that investors are strategically positioning themselves for long-term wealth creation through real estate investments.
Emerging Trends: Farmhouses and Holiday Homes
- Suburban Farmhouses: There is a noticeable trend among affluent individuals to invest in farmhouses located in suburbs or city peripheries. This trend is driven by the desire for spacious living areas, green surroundings, remote work opportunities, privacy, and amenities such as private swimming pools.
- Holiday Home Preferences: According to the survey, 35% of holiday home buyers express a preference for properties in Goa. This underscores the enduring allure of Goa’s lifestyle among India’s wealthy population.
Overseas Property Investment
- Stable Interest in Overseas Property: Despite the focus on domestic real estate, 12% of respondents express interest in investing in overseas properties. Dubai (UAE) and the USA are cited as top choices for international investment opportunities.
The findings of the Sotheby’s survey indicate a robust appetite for real estate investment among India’s affluent segment, with a strategic focus on long-term wealth creation and lifestyle enhancements.
