India’s luxury housing market may see a cooling of demand in FY27, with 56% of high-net-worth individuals (HNIs) expecting moderation, according to the latest ISIR survey. The findings suggest a shift toward cautious optimism after several years of strong price appreciation and robust sales in the premium and ultra-luxury segments.
Survey respondents indicated that elevated prices, selective demand, and a maturing buyer base could lead to slower absorption, particularly in top-tier markets. While luxury housing continues to benefit from wealth creation, lifestyle upgrades, and preference for larger, amenity-rich homes, HNIs believe the pace of growth may normalise as supply increases and buyers become more discerning.
Industry experts note that the expected cooling does not imply a sharp correction. Instead, FY27 is likely to witness stabilisation rather than decline, with developers focusing on fewer, well-differentiated projects and stronger execution. End-user demand is expected to remain intact, even as speculative activity tapers.
The survey also highlights that infrastructure improvements, regulatory transparency, and improved product quality continue to support the long-term outlook for luxury housing. However, pricing discipline and timely delivery will be critical to sustaining buyer confidence.
Overall, the ISIR survey signals a transition for India’s luxury housing market—from rapid expansion to a more balanced, value-driven phase—where demand remains healthy but growth becomes more measured.
