Published On:
January 27, 2026
Updated On:
February 11, 2026
A significant shift in sentiment is underway as 56% of India’s HNIs expect the luxury housing market to moderate in FY27, moving from aggressive buying to strategic consolidation. While equities currently edge out real estate as the top asset class, the focus has narrowed to prime urban homes and scarcity-driven markets.
For the last two years, the Indian luxury real estate market has been on a relentless bull run. Record-breaking transactions in Mumbai, sprawling farmhouse acquisitions in Delhi-NCR, and a vacation home frenzy in Goa defined the post-pandemic narrative. However, as we look toward the fiscal year 2027, the wind is shifting. The mood among India’s ultra-wealthy is transitioning from unbridled enthusiasm to calculated caution.
A recent extensive survey of High-Net-Worth Individuals (HNIs) and Ultra-HNIs reveals a critical pivot: nearly half of the country’s wealthiest investors now expect the luxury housing market to moderate. This isn't a crash, but a necessary cooling off—a sign of a market maturing after a period of frantic activity.
The "Fear of Missing Out" (FOMO) that drove prices to dizzying heights is being replaced by the "Joy of Missing Out" (JOMO) on overpriced assets. Data indicates that approximately 56% of affluent Indians anticipate a cooling period in the luxury residential sector for the 2026-27 fiscal year.
This moderation is largely driven by two factors: rising valuations and a scarcity of quality inventory. After months of double-digit price growth, the "value buy" window has firmly closed. Investors are no longer willing to pay a premium just to enter the market; they are waiting for the right asset at the right price. Consequently, while 57% of these investors still plan to buy real estate, their approach has become far more selective. The days of blind buying are over.
In a notable shift, physical real estate has slightly slipped from its pedestal as the undisputed king of HNI portfolios. For the first time in recent years, equities have emerged as the preferred investment avenue, with 67% of wealthy respondents favoring stocks compared to 64% for physical real estate.
This change is fueled by a robust domestic equity market and a record IPO cycle that has generated massive liquidity for founders and early investors. However, real estate hasn't lost its shine entirely; it is simply changing form. There is a growing appetite for "financialized" real estate—such as Real Estate Investment Trusts (REITs) and Alternative Investment Funds (AIFs)—which offer exposure to the sector without the headaches of property management.
If the wealthy are buying less, what exactly are they buying? The answer lies in one word: Defensibility.
Investors are consolidating their capital into assets that are immune to market fluctuations due to their sheer scarcity.
The profile of the luxury buyer is also evolving. It is no longer just the domain of old business families. A new wave of wealth creators—startup founders, unicorn employees, and senior professionals—has entered the fray, flush with capital from stock options and exits.
This new generation is less emotional and more strategic. They are increasingly bypassing local brokers in favor of professional wealth advisors to manage their real estate portfolios. The trend is clear: real estate is being treated as a precision asset class, not just a place to park black money or surplus cash.
As we head into the next fiscal year, expect the headlines to change. The stories of "sold out in 24 hours" may become fewer, replaced by narratives of "record prices for rare assets." The luxury market is entering a phase of consolidation. For the serious investor, this moderation is welcome—it clears out the noise and brings the focus back to fundamentals: location, build quality, and long-term legacy value.
