Summary of this article
Luxury housing demand remains resilient.
HNIs and NRIs diversify portfolios.
Premium properties offer long-term appreciation.
The geopolitical tensions between the United States and Iran have dictated how prices in India fluctuate. The recent developments have added another layer of uncertainty to the global financial markets. With the constraints on the Strait of Hormuz, importing has become tough for India. Global crude oil prices have crossed the USD 100 per barrel mark, which impacts the manufacturing of day-to-day objects. Products ranging from plastics, paints, certain medicines, cosmetics, and a majority of construction products come from crude oil. Since this price hike, the real estate industry has been hard hit with financial setbacks. This also delays the completion process of real estate projects. However, industry experts have a difference of opinion. They’ve noticed buyer participation that is undeterred, especially in the luxury and premium segments.
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.
"Luxury in real estate is moving into a quieter and more considered phase. For many years, luxury was defined by what could be immediately seen - the address, the size of the home, the finishes, the specifications, the clubhouse. All of that still has relevance, but I do not think it completes the idea of luxury anymore. The affluent buyer today is asking a far deeper question: will this home improve the way my family lives over the next many years? That is the real shift," says Pavan Kumar, Founder and CEO, White Lotus Group.
He also states how buying a home is not just a way to diversify their portfolio. It is an abode to them. "This is how the HNI buyer of 2026 is very different. They are not looking only for a beautiful home. They are looking for a home that can support work, wellness, family time, solitude, celebration and eventually even the next generation. Sustainability, technology and personalisation all matter, but only when they serve this larger purpose. Climate-responsive design, water and energy consciousness, native landscaping, smart security, EV readiness and seamless facility management should not feel like separate features. They should quietly improve the way people live every day," adds Kumar.
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.
