Indian HNIs Cut Savings But Real Estate Gains Trust

Indian HNIs saving less; real estate still attracts them, according to a recent survey that highlights a significant shift in financial behaviour among India’s wealthy. Even as their savings shrink, high-net-worth individuals (HNIs) continue to place real estate at the centre of their investment portfolios. The preference stems from trust, tangible security, and the long-term wealth-building potential that real estate offers—even in times of economic uncertainty.

A new 2025 wealth report by a leading financial institution surveyed more than 2,000 Indian HNIs across metros and Tier-II cities. The results revealed that over 60% of respondents have reduced their savings compared to previous years, citing inflation, higher living costs, and luxury spending. Yet, more than 72% said they either invested or plan to invest in real estate in 2025, underscoring that despite tighter liquidity, real estate continues to dominate the wealth management strategy of India’s richest.

Real Estate Remains a Symbol of Security

The survey found that Indian HNIs saving less is not deterring them from seeking stable and inflation-hedged assets. Real estate continues to be perceived as a store of value and a hedge against volatile financial markets.

“In uncertain times, tangible assets like real estate offer emotional and financial security. The idea of owning land or property in India still holds prestige and long-term value,” said Anil Mehra, a private wealth advisor with over 15 years of experience handling HNI portfolios.

According to the report, nearly 45% of respondents plan to increase their real estate holdings, either through residential properties, commercial buildings, or luxury villas in metro cities or vacation destinations like Goa, Rishikesh, and Coorg.

HNIs Spending More, Saving Less — Why?

The report points out three major reasons behind reduced savings:

1. Lifestyle Upgrades: Over 58% of HNIs surveyed spent more in 2024 on international travel, luxury cars, branded goods, and wellness services than in previous years.
2. Rising Inflation: Daily expenses and education costs have surged, even for the affluent, trimming the share of money left for pure savings.
3. Diversification into Assets: Rather than keeping large sums in savings accounts or FDs, HNIs are directing funds into assets like real estate, mutual funds, and global equities.

This behavioural shift from saving to asset acquisition reflects the evolving definition of wealth in modern India. The keyword “Indian HNIs saving less; real estate still attracts” perfectly captures this transition.

Cities Where HNIs Are Investing

Interestingly, the survey highlighted a shift in location preferences. While metros like Mumbai, Delhi, and Bengaluru still dominate, new hotspots are gaining traction:

• Hyderabad: 27% of respondents plan to invest in high-end residential projects in areas like Jubilee Hills and Gachibowli.
• Goa: 19% expressed interest in second homes and vacation rentals, seeing strong appreciation and rental income.
• Dubai and London: A growing number of Indian HNIs are exploring international real estate for residency and tax benefits.

Changing Attitudes Post-Pandemic

The Covid-19 pandemic reset many priorities. Indian HNIs saving less since 2022 is a consequence of increased spending on health, family, and quality of life. But what hasn’t changed is the appeal of real estate.

“Many of our clients realised during the pandemic that having a second home or a larger home is not just a luxury, but a necessity,” said Rashi Gupta, Director of a Mumbai-based real estate consultancy that focuses on luxury properties.

Moreover, many are favouring ready-to-move-in properties over under-construction ones to avoid project delays and regulatory uncertainties.

Younger HNIs Choosing Real Estate Early

One of the more interesting survey findings was the rise of millennial and Gen Z HNIs actively investing in real estate. In the 28-35 age group, over 52% said they’ve already made their first real estate investment.

This younger demographic is more open to co-investment models, REITs (Real Estate Investment Trusts), and digital real estate platforms, giving rise to a more tech-savvy and globally aware investor base.

Real Estate Seen as Inflation-Resistant

Another core reason Indian HNIs saving less still rely on real estate is inflation. With inflation eroding the value of cash and fixed deposits, real estate is increasingly viewed as a reliable inflation-resistant asset.

A Mumbai-based investment banker commented, “You may save less, but if your asset earns and appreciates simultaneously, you’re still growing wealth. That’s why real estate fits into the modern HNI mindset.”

Luxury Market Booming Despite Less Savings

India’s luxury real estate segment continues to outperform, with record sales in 2024 spilling into early 2025. DLF, Lodha, and Prestige Group have all reported strong Q1 numbers, and much of this growth is attributed to HNI buyers upgrading their primary residences or buying weekend homes.

The survey found that 67% of HNIs plan to invest in luxury homes above ₹5 crore, with amenities like private pools, smart home automation, wellness centres, and green certifications becoming top preferences.

Conclusion

The new data clearly highlights a paradox: Indian HNIs are saving less, but they are investing smarter. Real estate continues to be the cornerstone of wealth preservation, especially when other assets become volatile or underperform. As India’s affluent continue to shift focus from hoarding cash to owning tangible, appreciating assets, real estate will remain a magnet for investment.

Despite changing spending habits and financial goals, the idea of owning property — whether in Mumbai, Goa, or abroad — retains its charm, security, and potential for wealth multiplication. For Indian HNIs, the future of real estate remains bright, even if the bank balance isn’t.

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