India ranks 6th in wealthy individual’s growth

India ranks 6th in wealthy individual’s growth
02/03/2017 , by , in News/Views

Wealth creation in India is getting accelerated and the growth rate is pacing ahead of even global peers. India’s growth rate in 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 networth 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.

Bengaluru was amongst the top seven hotspots around the world that present exciting opportunities for private property investors in 2017 and beyond. In terms of most expensive prime residential i.e. the square metres of prime property $1 million can buy, Mumbai climbed up to rank 15 from 18 last year, ahead of Istanbul, Melbourne and Dubai.

Among Indian cities, Mumbai ranks 11 out of 40 global cities in terms of future wealth accumulation ahead of Chicago, Sydney, Paris, Seoul and Dubai. Mumbai also ranks at 21 in the city wealth index ahead of Toronto, Washington DC, Moscow, while Delhi at 35 ahead of Bangkok, Seattle, Jakarta, said the report.

According to the report, 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 interest of wealthy Indians.

“The Attitudes Survey shows us that more Indian UHNWIs are choosing to send their children overseas for secondary and tertiary education. This has property market implications – as parents are more likely to purchase property in overseas school or university locations, combining investment with the practicalities of housing their children. The top three overseas markets identified by Indian UHNWIs according to the survey are (in order): the UK, Singapore and the US – three of the markets we believe will be the target of Indian property investment going forward,” said Nicholas Holt, Head of Research for Asia Pacific, Knight Frank Asia Pacific.

About admin

Loading...