India’s wealthy elite are increasingly turning their attention to residential real estate as a prime investment opportunity, marking a significant shift in the country’s investment landscape according to a report published in the Financial Express.
According to a recent report by Knight Frank, a substantial 32% of their investment portfolios are now directed towards residential assets. This transition highlights changing trends in investment preferences and reflects the motivations driving the elite’s choice to invest in residential properties.
Investment Trends in Residential Real Estate
The Knight Frank report highlights that approximately 12% of India’s ultra-high-net-worth individuals (UHNWIs) are planning to invest in new homes in 2024, indicating a growing appetite for residential real estate. This shift is driven by a desire for quality living spaces that cater to evolving lifestyle preferences, according to Parvinder Singh, CEO of Trident Realty.
Forecasted Growth and Opportunities
Knight Frank’s flagship report, The Wealth Report 2024, forecasts a remarkable surge in the number of Indian UHNWIs, projecting an increase to 19,908 by 2028. Aman Trehan, Executive Director of Trehan Iris, emphasizes that this surge signifies a remarkable shift in preferences, fueled by a thriving economy and evolving lifestyle choices.
Impact of Infrastructure Development
The ongoing expansion of infrastructure and connectivity initiatives, particularly in the National Capital Region, is poised to unlock new opportunities for elite investors. Aman Trehan predicts that this will lead to capital appreciation and enhanced lifestyles for those investing in real estate.
Resilience of the Indian Economy
A positive economic sentiment among investors reflects the resilience and potential of the Indian economy. Aman Sharma, Founder & Managing Director of Aarize Group, views the allocation of 32% of wealth to housing properties by India’s super-rich as a testament to real estate’s enduring value as a wealth preservation and growth tool.
Lifestyle Shifts Driving Demand
Beyond economic factors, lifestyle shifts are playing a pivotal role in driving up demands for luxury and larger homes among India’s elite. Ashish Sharma, AVP operations at Brahma Group, notes a surge in luxury housing sales among India’s elite, signaling a seismic shift in the real estate landscape.
A Promising Outlook
The increasing investment in residential real estate by India’s ultra-rich presents exciting possibilities for the market. Luxury developers have the opportunity to accommodate the elite’s desire for exclusivity, comfort, and long-term value by offering innovative solutions that cater to their evolving needs. As the trajectory of India’s real estate market continues to evolve, the outlook remains promising for both investors and developers alike.
