The Growing Activity In Luxury Real Estate As HNIs, NRIs Diversify Investment Portfolios

Owning a home has always been a symbol of stability. However, for HNIs and NRIs, premium residential real estate is emerging as a way to preserve their assets. This is combined with capital appreciation, ownership, and resilience during times of economic turbulence.

The real estate market is experiencing the effects of fluctuating market demand and rising construction costs due to tensions in the West. However, HNIs and NRIs see this as an opportunity to invest in the market.

This string of changes and challenges has led the real estate market into what industry stakeholders call mature and demand-driven growth. As per the Real Insight Residential Q1 2026 Report by Aurum PropTech and PropTiger, the top eight cities in India have recorded sales of 95,973 housing units, while nearly 93,000 new units were released into the market.

These numbers also indicate that there is a balance between demand and supply of property. The report also noted that the average residential price has crossed the Rs 10,000 per square foot mark for the first time. This shows that there is sustained demand in the market for residential units in the luxury and premium units.

For HNIs and NRIs, the luxury real estate in India offers several advantages over traditional financial tools. First, It provides protection against inflation as properties appreciate. Premium projects also tend to appreciate even as they are in the construction phase.

“Housing sales volume in 2025 witnessed a 14 per cent YoY decline, but sales value in the period increased by 6 per cent across the top 7 cities. In Q1 2026, approx. 1,01,675 units worth over INR 1.51 lakh crore were sold across the top 7 cities, driven by demand from the luxury and ultra-luxury segments,” adds Puri, Chairman of ANAROCK Group. He further explains how the increased interest has been particularly pronounced in the luxury market, where demand has continued to remain stronger than overall sales volume; therefore, despite sales volume remaining nearly unchanged from last year, total sales value actually increased significantly from last year to Rs 9,33,000 crores in FY26, indicating that purchasers have a strong preference for the higher-value property type.

Why HNIs and NRIs prefer luxury real estate is also because it offers an opportunity for portfolio diversification. Residential assets generally don't witness the same volatility as in the equity market. They are also considered less for short-term gains. The report cites that developers have maintained pricing discipline and project viability rather than just pursuing volume-led sales.

“Over the past three years, the contribution from NRI buyers has increased significantly for us.”

He further added, “Today, NRIs are more connected to the brand than ever before. Much of this is driven by the trust they place in a developer like DLF that not only sells homes but also delivers well-managed products within large, integrated ecosystems. Stable capital appreciation, strong service standards, ease of transactions, and the peace of mind that comes with professionally managed developments have all played an important role in strengthening this engagement,” says Aakash Ohri, MD and CBO, DLF.

Another reason why there’s a spike in this particular activity is due to the regulatory reforms made. The Registration Bill 2025’s digital property registration framework is expected to improve title transparency and reduce transaction friction. At the same time, major infrastructure projects across Bengaluru, Delhi NCR, Pune, and Mumbai help in unlocking new residential corridors.