India Real Estate Latest Trends | Overview | Growth | Investments

November 6, 2023
Why HNIs are Flocking to Global Luxury Real Estate Hotspots

The luxury real estate market in India is undergoing a striking transformation, and it’s not only due to the allure of sumptuous living. High-net-worth individuals (HNIs) are showing keen interest in investing in sustainable luxury properties, that significantly impacted the property landscape.


Factors like rising disposable incomes, urbanization, and the conscientious desires of HNI homebuyers. In this blog, we will explore how this paradigm shift is related to HNI investments in India’s luxury real estate market.


The Rise of Sustainable Luxury Properties and HNI Investments

The luxury real estate sector in India is experiencing a remarkable shift, and this transformation is closely linked to HNI investments. The India Luxury Real Estate Report 2023 by Knight Frank, shows that in India, a substantial 63% increase in ultra-high-net-worth individuals (UHNWIs) is expected over the next five years. This presents an exciting opportunity for HNIs to invest in luxury real estate, particularly in major cities like Delhi, Mumbai, Bengaluru, and more.


A Growing Demand for Sustainability and HNI Preferences

What sets this trend apart is the noticeable rise in the demand for sustainable luxury properties, which strongly resonates with HNI preferences. HNIs are increasingly drawn to homes that are not only visually opulent but also ecologically responsible.


In 2021, the green building market in India was valued at a staggering $20,983 million, with a compound annual growth rate (CAGR) of 7.2% from 2017 to 2021. Sustainability aligns with HNI values and lifestyle choices. Globally, the interest in green building practices is also growing, with the global green building materials market estimated to reach $394.41 billion by 2028.


Focus on Wellness and Sustainability and HNI Investments

This shift isn’t just about property; it encompasses the well-being of residents and the environment. Properties are now designed to foster sustainable living and offer a range of wellness amenities, catering to the preferences of HNI investors. In a survey by JLL, 7 in 10 occupiers had carbon emission targets as part of their corporate sustainability strategy. This indicates a market willing to invest in eco-friendly spaces, reflecting the preferences of HNI investors.


What truly defines these sustainable luxury properties, and why do HNIs favour them? These properties go beyond being just residences; they are conscientious sanctuaries designed to minimize environmental impact and maximize energy efficiency. For instance, the TARC Tripundra project in Delhi, with a ₹500-crore investment, incorporates green features like rainwater harvesting, solar panels, and energy-efficient appliances.


Sustainable materials can be used for different purposes including energy efficiency, water conservation, renewable energy and lots more


The Bright Future of Sustainable Luxury Real Estate and HNI Investments

This surge in sustainable luxury real estate isn’t a passing trend; it represents a profound market shift that aligns with HNI investments. Corporate real estate leaders in Asia Pacific, including India, perceive the connection between Corporate Real Estate (CRE) and sustainability as a board-level agenda.


Green real estate assets in India’s key cities have increased from 24% in 2011 to 31% in 2021, offering attractive options for HNI investments. The availability of green real estate assets compliant with ESG standards has surged by 37% in the last five years, promising a sustainable and profitable future for HNI investors in the Indian real estate industry.


A Paradigm Shift Towards Sustainable Luxury Living and HNI Investments

As this shift unfolds in India’s luxury real estate market, sustainable luxury properties are not just dwellings but have also transformed investment opportunities into a new way of living, a way that harmonizes opulence with environmental stewardship.


HNIs are recognizing the potential in these properties and are actively investing in this paradigm, where luxury is synonymous with consciousness. They are not only shaping the future of opulent living but also contributing to the growing trend of sustainable luxury living and HNI investments in India’s property landscape.


Key Insights for Novice Investors: Maximising Real Estate Investments

The top priority for wealth creation for Indian investors has always been real estate and for all the right reasons. Despite prevailing misconceptions, the right timing and keen insight behind property acquisitions can prove to be highly profitable in the long run. When one makes strategic decisions it can be the key to gaining substantial returns. Thus, understanding the nuances and studying factors like market cycles and property types is crucial for anyone aiming to harness the potential of r

Bangalore Real Estate 2023-24: An Analysis of the Future 

A prominent measure of the success of a real estate market is how much NRI or the international clients it attracts. If we talk about the real estate landscape in India, which continues to evolve, Bengaluru and Mumbai stand out as hotspots global for Non-Resident Indian (NRI) investments.  These cities offer a compelling mix of factors, from stable markets to expanding opportunities, attracting NRIs seeking lucrative real estate prospects.   Bengaluru's Appeal:

The Shifting Landscape: Luxury Real Estate Surpasses Affordable Homes in India

The real estate industry in India is one of the biggest contributors to the country’s economy, projected to account for 13% of its GDP by 2025. The sector, estimated at USD 265.18 billion by 2023, is forecast to reach USD 828.75 billion by 2028. In fact, Indian residential real estate has been named time and time again as one of the fastest-appreciating housing markets in the world.   According to a report released by a leading real estate consultancy, the total number of homes sold