After years of relying on equities to build wealth, many of India's affluent investors are now channeling more capital into premium residential real estate. This shift is driven by a desire for stability and long-term value amid volatile markets. Industry experts note that wealthy investors are increasingly treating premium housing as an integral part of their investment portfolios, alongside equities, gold, fixed-income products, and other assets. This change reflects a broader evolution in how real estate is perceived—not just as a place to live, but as a vehicle for wealth preservation and growth over time.
Competitive Returns from Premium Real Estate
Pratik Tibrewala, Senior Vice President and Head of Corporate Finance at M3M India, told ET that premium residential real estate has delivered competitive returns over the years. "Over the last two decades, Indian residential real estate has delivered nearly 7–9% CAGR, while premium micro-markets across Gurgaon, Mumbai, Delhi, and Bengaluru have significantly outperformed, delivering an estimated 11–13% CAGR. This is quite comparable with long-term returns from Gold and the Nifty 50," Tibrewala said. He emphasized that the current demand differs from earlier property cycles, which were largely driven by speculation. Today's buyers include entrepreneurs, senior professionals, NRIs, and dual-income households who integrate real estate into their long-term financial planning. "Periods of volatility and muted near-term returns in equities also encourage investors to diversify towards real assets such as premium residential real estate," he added.
Stability and Security in Uncertain Times
Experts point to the sense of security that real estate provides during uncertain times as a major attraction. Jason Samuel, Managing Director of House of Swamiraj, stated that property continues to play a key role in wealth creation for high-net-worth individuals. "Alongside traditional investment avenues, high-quality real estate offers stability, long-term value appreciation, and the advantage of asset-backed security," Samuel told the financial daily. He added that investors are increasingly viewing property as a way to strengthen their portfolios, rather than simply as an asset that rises in value. "Particularly in premium micro-markets with strong infrastructure growth and robust demand, real estate continues to stand out as a reliable long-term wealth creation avenue," he said.
Infrastructure Development Driving Investment
Infrastructure development is also influencing investment decisions. Areas with improved connectivity and business growth have become more attractive to investors. Deepak Sangwan, Chairman of Origen Realty, noted that markets supported by strong infrastructure are seeing growing interest from affluent buyers. "Markets like Gurugram have emerged as strong examples of this shift, driven by robust infrastructure growth, expanding corporate presence, and sustained demand for premium housing," Sangwan said. He highlighted the Dwarka Expressway corridor, which has recorded significant appreciation in recent years, boosting confidence in infrastructure-led markets.
Changing Perceptions of Premium Housing
The way wealthy Indians view premium housing is also transforming. Industry leaders say it is no longer seen only as a lifestyle purchase but increasingly as an asset that can help preserve wealth over the long term. Tibrewala noted that affluent buyers are showing a preference for branded developments in prime growth corridors where land supply is limited and connectivity continues to improve. While equities remain an important part of wealth creation due to their liquidity and return potential, experts say premium real estate is gaining favor for offering stability, tangible ownership, and long-term value. For many wealthy investors, the focus is no longer on choosing between stocks and property but on striking the right balance between the two.
