After years of relying on equities to build wealth, many of India’s affluent investors are now putting more money into premium residential real estate as they look for stability and long-term value amid volatile markets.Industry experts say that wealthy investors are increasingly treating premium housing as an important part of their investment portfolios, alongside equities, gold, fixed-income products and other assets. The shift reflects a broader change in how real estate is being viewed, not just as a home, but also as a way to preserve and grow wealth over time.Pratik Tibrewala, senior vice president & head 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 and delivered an estimated 11–13% CAGR, which is quite comparable with long-term returns from Gold and the Nifty 50,” Tibrewala said.He said the current demand is different from earlier property cycles that were driven largely by speculation. Today’s buyers include entrepreneurs, senior professionals, NRIs and dual-income households who are using real estate as part of 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.Experts say one of the biggest attractions of real estate is the sense of security it provides during uncertain times.Jason Samuel, managing director, House of Swamiraj, said 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 seeing 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 is also influencing investment decisions. Areas witnessing improved connectivity and business growth have become more attractive to investors.Deepak Sangwan, chairman of Origen Realty, said 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 pointed to the Dwarka Expressway corridor, which has recorded significant appreciation in recent years, boosting confidence in infrastructure-led markets.Industry experts also believe changes within the sector itself have encouraged more investors to consider property.The way wealthy Indians view premium housing is also changing. 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 said 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 because of their liquidity and return potential, experts say premium real estate is gaining favour for offering stability, tangible ownership and long-term value.For many wealthy investors, the focus is no longer on choosing between stocks and property. Instead, they are looking to strike the right balance between the two.
