BENGALURU: India will see the world's highest growth in the number of ultra-high net worth individuals (UHNWIs) at 50.1% over the next five years, reaching 19,908 by 2028, according to real estate consultancy Knight Frank. A new report revealed Wednesday. Ultra-high net worth individuals are defined as individuals with a net worth of $30 million or more.
“A combination of factors will drive India's ultra-high-net-worth population to grow over the next five years. Robust economic growth, favorable demographics, and a thriving startup ecosystem will help Indians grow their wealth in the coming years. There will be more opportunities to create,” said Vivek Rati, head of research at Knight Frank India.
After declining in 2022, this number increased by 6.1% to 13,263 in 2023 due to India's growing prosperity. The number of ultra-high net worth individuals worldwide increased by 4.2% over the year to 626,619 from 601,300 the previous year.
About 32% of India's ultra-rich wealth is invested in residential real estate, of which 14% is outside the country. About 12% he plans to buy a new home in 2024. On average, India's ultra-high-net-worth individuals own 2.57 homes, and a significant 28% of the group rented out their second home during 2023.
Approximately 17% of their wealth goes into passion investments, with the top three items consisting of luxury watches, art, and jewelry. Globally, art has emerged as the best-performing luxury asset class, with prices increasing by 11% in 2023.
Shishir Baijal, Chairman & Managing Director, Knight Frank India We can expect further investment.”
Of the 100 luxury housing markets tracked by the consultancy's Prime International Residential Index, Mumbai will rise 29 places to number 8 in 2023, while Delhi and Bengaluru will be ranked 37th and 59th, respectively. Ta. Manila topped the ranking, while Dubai, last year's top contender, dropped one place. Price increases in the top 5% of the market value of each city's housing portfolio were considered for exercise.
“The outlook for 2024 remains positive. Mumbai ranks second among 25 cities globally with a projected headline inflation rate of 5.5%,” the report said.
Monaco maintains its position as the world's most expensive real estate market, with 16 square meters of land sold for $1 million, followed by Hong Kong (22 square meters) and Singapore (32 square meters) in 2023. Domestically, Mumbai offered 103 sq m. Same amount.
issued February 28, 2024, 23:37 IST
