Wealth creation in India is getting accelerated and the growth rate is pacing ahead of even global peers. India’s growth rate in the number of Ultra High Networth Individuals (UNHWI) ranked 6th in 2016 and is likely to move up to 3rd rank over the next decade out of 89 countries, showed Knight Frank Global Wealth report 2017.
- Currently, India has 264,300 millionaires that constitute 2% of the world’s total number of millionaires, and 5% of the world’s billionaires or 95 are Indians, the report showed.
- In the last 10 years, the country has added around 500 new UHNWIs annually and over the next decade, this number is expected to double with 1,000 new additions every year. Between 2015 and 2016, UHNWIs, with net-worth of over $30 million, increased by 12% in India and forecasted to grow by 150% during 2016-26.
- “In terms of real estate sector investment, the wealthy Indians have expressed their top priority in the Office segment and Logistics also sees a three-fold rise. Even though the residential market in India is reeling under pressure, 40% of wealthy Indians are likely to invest in residential property in India in the next two years while 25% are keen for overseas avenues,” said Samantak Das, Chief Economist & National Director – Research, Knight Frank India.
- According to the report, a substantial portion of wealthy Indians are likely to invest in residential property in the next 2 years including 40% within the country and 25% in overseas property markets. Offices have emerged as the top property sector for investment, while logistics have seen a three-fold rise in terms of the interest of wealthy Indians.
- Around 40% Indians are anticipated to buy residential property outside their country of residence. For Asia and globally it was 32% and 30%, respectively. The UHNWIs in India prefer countries like Singapore, UK, UAE, USA and Hong Kong for owning a home. However, the global wealthy individuals give more preference to European countries.