Land vs Apartments: Why Ultra-HNIs are moving towards Land Investments in India
In India’s evolving real-estate landscape, ultra-high-net-worth individuals (UHNIs) and family offices are increasingly shifting their preference from luxury apartments to land-parcels. While apartments remain a traditional staple, land is emerging as the preferred asset class for large-ticket investors seeking long-term value, control, scarcity and legacy-wealth outcomes.
The Apartment Proposition
Luxury apartments have long been the safe-play for HNIs: turnkey assets, branded developments, urban living and potential rental yields. According to the 2025 “Luxury Residential Outlook Survey”, 62 % of HNIs/UHNIs plan to buy property over the next two years. Moreover, luxe-housing sales (units ₹4 crore and above) surged 85 % year-on-year in H1 2025 in the top seven Indian cities [1].
Why Land Is Emerging as the UHNI Choice
Appreciation Upside
Land deals in India are surging: in H1 2025, India transacted approximately 2,898 acres across 76 deals, already exceeding the full year 2024 figure (2,515 acres). The transaction value stood at ~₹30,885 crore with development potential of over 233 million sq ft. For land-bankers, these statistics underline the opportunity for capital appreciation in well- positioned sites, especially in growth corridors [2].
Infrastructure-Driven Growth
With urban expansion increasingly driven by infrastructure (airport corridors, expressways, logistics hubs, SEZs), land in such influence zones is capturing value ahead of built supply. Institutional consultants such as JLL India and CBRE South Asia highlight land-banking in ready-to-develop corridors as a strategic play for real-estate capital.
Diversification & Inflation Hedge
In a phase where equity markets and global economic headwinds weigh, land becomes a tangible real-asset hedge. For ultra-wealthy investors, it complements other asset classes and supports long-term wealth protection.
How This Plays Out in Bengaluru: Land Banking & Periphery
In Bengaluru, the peripheral and growth-corridor markets (such as airport belt, peripheral ring roads, logistics corridors) have become hotbeds for land-banking. For example, in H1 2025, Indians transacted ~182 acres of land in Bengaluru across 15 deals.
In comparison, tread of apartment supply in Bengaluru has proliferated. The peripheral markets are now seeing buyer shift from conventional apartments to plotted/villa product or raw land parcels for future development. Indeed, a property-investment guide shows that in Bengaluru’s Sarjapur/Devanahalli belts plot-prices in 2025 stood at ~₹5,000-₹8,000 per sq ft (for plotted land) and had doubled over the prior four years.
Moreover, land-banking analytics show that expansions of infrastructure such as the upcoming ring roads, airport-driven expansions and logistics corridors are creating corridors of value appreciation. For an UHNI, acquiring a strategic land parcel in the periphery allows for a hold-and-develop strategy versus simply buying an apartment for consumption or rental.
Why Now? The Macro Drivers
Premium Apartment Growth but Limited Yield Premium : Housing is booming (85 % growth H1 2025) but the discount for apartments over land may shrink as supply rises.
Infrastructure & Government policy : Government-led initiatives to digitize land records and improve transparency (planned full land- digitization to spur FDI in realty) create a more favorable environment for land-investment.
Scale & Legacy Focus for UHNIs : As luxury capital and family-office wealth grows the preference is shifting toward fewer but larger assets with optionality and hold-value rather than flats.
Key Takeaways for Investors & HNIs
Location matters more than ever: corridors with infrastructure, expressways, airports, SEZs dominate value creation. In Bengaluru, this means airport belt, peripheral ring roads, logistics hubs
Due-diligence is critical: land status (conversion, zoning), frontage, access infrastructure, title clarity and exit strategy must be well-executed.
Scale plays: UHNIs typically look at large parcels, not individual apartments—they look for optionality (develop, hold, flip when timing right).
Portfolio context: Land complements other assets (equity, commercial real estate, apartments) and aids diversification, inflation hedge and wealth preservation.
Conclusion
The shift from luxury apartments to land among India’s ultra-wealthy is real and meaningful. Driven by scarcity, control, infrastructure tailwinds and legacy ambitions, land-investment is being recast as a strategic asset class. For a UHNI investor or family-office as the investment paradigm shifts from built assets to strategic land ownership, the need for institutional-grade advisory becomes paramount.
For HNIs, family offices, and developers navigating this complex landscape, Kingsmarque provides a one-stop, end-to-end platform that blends research-backed insights, on-ground intelligence, and transactional precision.