Offer for sale-heavy market listings unlock fresh money for luxury realty

Founders, Esop holders emerge as a younger cohort of high-end buyers

Ultra-luxury homes and land parcels have seen higher demand from promoters who diluted stakes in 2025, said real estate experts tracking investments in the segment. 

“We are already seeing startup founders such as Siddhartha Sacheti (CaratLane), Akhil Wable (Data For India), and Lalit Keshre (Groww) redeploy liquidity from stake sales into ultra-luxury homes and land parcels, particularly across Mumbai, Delhi-National Capital Region (NCR), and Bengaluru, with rising interest in second homes in Alibaug and Goa,” said Ashwin Chadha, chief executive officer (CEO), India Sotheby’s International Realty. 

India’s luxury real estate market may get a boost in 2026 from such investments, as proceeds from a record number of initial public offerings (IPOs) — more so from offers for sale (OFS) — find their way into property, according to wealth managers and real estate executives. 

According to Prime Database, Indian bourses saw 103 IPOs in 2025, raising a total of ₹1.76 trillion.

 

Of this, fresh capital accounted for ₹64,419 crore, while OFS proceeds stood at ₹1.11 trillion. While fresh capital raised was lower than in 2024, OFS proceeds were not only higher than the previous year but also the highest since 2020, the data showed.

 

While the largest IPOs — Tata Capital, HDB Financial Services, LG Electronics India, and ICICI Prudential Asset Management Company — together accounted for just over ₹50,000 crore, several others such as Meesho and Lenskart, though smaller in size, saw promoters sell single-digit to substantial stakes through OFS, triggering liquidity events. Investment bankers, wealth managers, and real estate executives said a portion of these windfall gains is likely to be deployed in luxury residences in prime locations, including Mumbai and Delhi-NCR.

 

“2025 has indeed seen unusually high OFS-led liquidity. Reports indicate promoters and early investors have cashed out over ₹1 trillion via OFS in 2025 across a large number of IPOs, with OFS forming a dominant share of total IPO proceeds this year. A part of this liquidity typically finds its way into real estate, especially primary residences, premium upgrades, and select trophy assets in specific micro-markets,” said Amit Ramchandani, managing director (MD) and CEO, investment banking, Motilal Oswal Financial Services.

 

While promoters and founders also diversify into financial assets, private markets, operating businesses, and overseas investments, real estate is expected to see a meaningful inflow, he added.

 

Nilesh Choudhary, founder and CEO, Aikyam Capital, said India’s strong IPO pipeline in 2025 — supported by healthy domestic liquidity and robust corporate performance — has enabled considerable monetisation by promoters and early investors through OFS. “A portion of these gains typically rotates into real estate, especially in major metros where demand for premium housing remains strong. Additional liquidity from IPO and OFS activity can reinforce momentum in the luxury segment in the coming quarters, particularly in Mumbai, NCR, Hyderabad, and Bengaluru,” he said.

 

Choudhary added that luxury housing has been among the strongest segments over the past 18–24 months, supported by rising incomes, stable interest rates, and disciplined supply. Developers are hopeful that these flows translate into actual purchases, especially as the buyer profile skews younger than in earlier cycles.

 

“In developed markets such as the US and the UK, IPO-led wealth creation has consistently translated into higher demand for premium real estate in key financial hubs. We expect a similar trend, particularly in luxury residential segments, where discerning investors prefer well-located, high-quality assets as a secure and enduring store of value. In our luxury portfolio, we have witnessed this pattern in previous cycles and anticipate continued momentum in demand for premium locations,” said Aakash Ohri, MD and chief business officer, DLF Home Developers.

 

Wealth managers also pointed to a younger base of investors and entrepreneurs partially cashing out during IPOs, creating a new cohort that is open to asset creation options beyond real estate.

 

“Founders, employee stock ownership plan holders, and early investors tend to allocate differently from traditional promoter families. Alongside real estate, we are seeing higher allocations to financial assets such as mutual funds and alternative investment funds, private market investing, and global diversification,” Ramchandani said.

 

Choudhary noted that unlike earlier cycles, when real estate absorbed a larger share of liquidity, investment behaviour today is more diversified. “Younger high-networth individuals tend to allocate across public markets, global funds, venture opportunities, and alternatives before committing to property purchases. Real estate still features prominently, but not as the default anchor for all wealth,” he said, adding that this broader, portfolio-driven approach is contributing to a more balanced investment ecosystem.