Record listings boost wealth, lift luxury homes

New Delhi: India's booming luxury real estate market is likely to sustain its momentum this year backed by the creation of a new set of wealthy entrepreneurs thanks to a slew of new-age company IPOs, adding to a record wave of listings in 2025, experts said. The growing base of affluent individuals would help drive continued demand for high-end realty assets despite the short-term uncertainty due to prevailing geopolitical tensions."The sheer scale of India's IPO cycle in 2025, with 103 companies raising nearly ₹1.76 lakh crore - the highest ever - has significantly accelerated wealth creation in the country," said Amit Goyal, managing director, India Sotheby's International Realty. "Historically, strong capital market phases translate into higher allocations to luxury real estate. We have already seen this play out in record luxury home sales across India's top seven cities."Sotheby's outlook survey reflects a similar sentiment - ultra-high-net-worth individuals (UHNIs) and high-net-worth individuals (HNIs) were more measured but broadly positive on buying right assets at prime locations in key cities, and second homes."The luxury segment continues to witness high demand in India, and the liquidity generated by the record capital market activity and IPOs in 2025 is likely to act as a primary catalyst for the segment in 2026," said Anshuman Magazine, chairman and CEO - India, Southeast Asia, Middle East & Africa at CBRE. "As lock-in periods expire, a new generation of wealth creators, ranging from startup founders to senior corporate professionals, is increasingly prioritising lifestyle, longevity, and asset quality. This maturing buyer base is driving the high-end category to become a dominant force in the residential sector."Cities such as Mumbai, Delhi NCR, and Bengaluru often see immediate spillover from stock market wealth generation into premium housing. Luxury homes offer status, portfolio diversification, and long-term value appreciation."India's record wave of IPOs in 2025 created a fresh pool of high-liquidity wealth among HNIs, founders, early investors, and senior employees with ESOP gains," said Ankush Kaul, president, sales and marketing and customer experience at Central Park. "Many of these newly affluent individuals tend to deploy capital into tangible, prestige assets, especially luxury real estate in prime urban markets."Experts, however, said recent geopolitical upheavals are creating short-term uncertainty in decision-making."Real estate remains an excellent wealth diversifier, and capital created in 2025 will continue to find its way into luxury assets, but decision-making will be calibrated and likely to take longer," said Goyal at Sotheby's. "Overseas purchases, especially in markets like Dubai, have slowed for now."In real estate, though, some moderation was overdue after the sharp price run of the past few years.