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Private Investors Shift Focus to Luxury Real Estate in India
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News18•14-10-2026, 16:00
Private Investors Shift Focus to Luxury Real Estate in India
- •Private institutional investors in India are increasingly favoring luxury housing over affordable homes due to higher profitability and changing buyer preferences.
- •Luxury and premium housing accounted for 56 percent of institutional investments in the residential sector between 2011 and September 2026.
- •The share of affordable housing in new residential launches fell to less than 10 percent in the first half of 2026 from over 50 percent in pre-COVID years.
- •Rising construction costs and demand for larger homes have driven the shift, while government-backed funds like SWAMIH continue to support affordable housing.
Key Questions Answered
Luxury and premium housing accounted for 56 per cent of institutional investments in India's residential sector between 2011 and September 2026, while affordable and mid-income housing accounted for the remaining 44 per cent.
Affordable housing's share in new residential launches is estimated to have fallen to less than 10 percent in the first half of 2026, dropping significantly from more than 50 percent during pre-COVID years.
Launched in November 2019 to provide last-mile financing to stalled projects registered under RERA, the SWAMIH funds accounted for nearly half of the investments received by affordable and mid-income segments between 2019 and September 2026, supporting the completion of over 58,596 homes across 146 projects.
