Mumbai houses highest number of super-rich ~ Facet

India’s commercial capital has the highest number of super-rich in the country. With 1,094 ultra-high net-worth individuals (UHNWI), Mumbai leads the pack, followed by Delhi at a distant second with 545 people, according to Knight Frank Wealth Report 2016.

The firm also said the number of ultra rich in Mumbai will increase to 2,243 while the number for Delhi will go up to 1,128 over the next decade.

“Mumbai will continue to maintain its number one position but the rate of growth in UHNWI population will be marginally higher in New Delhi than in Mumbai,” said Samantak Das, chief economist and national director - research, Knight Frank India.

The report also said in the past 10 years, UHNWIs in India, with over $30 million in net worth, have grown over four times or 340 per cent to 6,020 during this period, against the global average of 61 per cent to 187,468.

In the past 10 years, the billionaire count in India jumped by 333 per cent to 78 people, against a global rate of 68 per cent to 1,919 people.

Indian UHNWIs are also expected to double their count over the next 10 years, while global number will rise 41 per cent. As per the current ranking, India is sixth on the UHNI list of 91 countries and is expected to clinch the fourth slot by 2025, after the US, China and UK.

“While the slowdown in China continues, the growth trajectory of Asia’s other giant, India, continues to be a positive story for the region. The strength and diversity of the Indian economy will continue to provide entrepreneurial and wealth growth opportunities, with the country set to see a doubling of its UHNWI population over the next 10 years,” said Nicholas Holt, head of research for Asia Pacific, Knight Frank.

“This growth in wealth, not only at the UHNWI level, but also across other wealth brackets will be a key driver in the demand for prime residential property in the key Indian cities.”

During the past 10 years, around 31 per cent of Indian UHNWIs have increased their allocation to residential real estate, while 47 per cent have allocated more investment to the commercial property market.

Around 16 per cent are keen to invest in residential properties in the next one year.

“Even though the rate of growth in the number of Indian UHNWIs (wealthy Indians) over the next 10 years in India will slow down, it will still be much higher than the global average. Globally, India’s share of UHNWI population, which was one per cent in 2005, will continue to grow and is expected to increase to five per cent in 2025. Going forward, Mumbai will continue to maintain its number one position but the rate of growth in UHNWI population will be marginally higher in New Delhi than in Mumbai,” said Mr Das.

According to him, financial instruments remain the preferred investment asset class among wealthy Indians. Within the real estate sector, commercial asset class is preferred over the residential segment and wealthy Indians will maintain this status quo with regard to their investment preferences in future.

The average number of residential properties owned by wealthy Indians stands at four — the highest in the world — while the global average is 3.7, the report said.

According to Knight Frank’s Prime Investment Residential Index (PIRI), Bengaluru is among top 20 cities globally for investment, while Delhi and Mumbai rank 44 and 51, respectively.

The number of ultra rich will increase to 2,243 over the next decade, says Knight Frank Wealth Report

SOURCE: THE HINDU

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