Why India’s HNIs Are Increasing Real Estate Investments Despite High Interest Rates
High-net-worth individuals (HNIs) in India are steadily increasing their exposure to real estate, even as interest rates remain elevated. Industry data indicates that real estate now constitutes nearly 30–35% of HNI investable wealth, excluding primary residences. In an environment marked by market volatility and global uncertainty, affluent investors are prioritising tangible assets that offer stability, capital preservation, and long-term appreciation.
Prime residential and luxury real estate is increasingly viewed as a hedge against financial market fluctuations. Surveys suggest that over half of Indian HNIs already allocate more than 20% of their portfolios to property, with a growing inclination toward luxury housing. Demand is being driven not only by asset safety but also by the ability of premium real estate to deliver consistent value growth over time.
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Luxury housing demand has evolved beyond size and pricing, with HNIs and NRIs favouring assets that combine lifestyle enhancement with wealth preservation. High-end homes priced above ₹4 crore are witnessing strong year-on-year growth across major cities. Buyers are placing greater emphasis on asset quality, tenant credibility, lease structures, and income visibility, reflecting a more professional and data-driven investment approach.
Branded residences and wellness-led developments are emerging as key growth drivers within the luxury segment. These projects appeal to younger, globally exposed investors seeking curated living experiences, premium services, and health-focused amenities. Cities such as Mumbai, Delhi NCR, Bengaluru, Pune, and Gurugram are witnessing rising traction, supported by strong infrastructure, urbanisation, and lifestyle-driven demand.
Commercial real estate is further strengthening investor confidence, particularly through pre-leased, grade-A office and retail assets. With higher rental yields, long-term lease tenures, and lower vacancy risks, these properties are increasingly seen as portfolio anchors. For HNIs, real estate continues to offer a unique combination of leverage, inflation protection, steady cash flows, and long-term capital appreciation, making it a core allocation despite higher borrowing costs.
