Mumbai and New Delhi have been ranked among top 40 global cities in the world by Knight Frank in its wealth index.
Mumbai is 21st on the list, ahead of Washington DC, Moscow and Shenzhen while New Delhi is at the 35th spot, ahead of Rome, Jakarta and Seattle.
In the last decade, around 500 new ultra high net worth individuals (UHNWI) were every year in India, and for the next 10 years, the annual increase is likely to touch 1000 UHNWIs. Those having wealth of $30 million and above have been categorised as UHNWI by Knight Frank in its latest 'The Wealth Report 2017'.
At 13.6 million, India has 2% of the world's millionaires, and 5% of the world's billionaires (2,024).
The number of UHNWIs in India increased 290% during the last decade and is forecast to grow 150% during 2016-26. The country ranks sixth in UHNWI growth rate for 2016, to move up to the third rank for the next decade.
As on 2016, in India, there are 6,740 UHNWIs, with Mumbai leading at 1,340 individuals, followed by Delhi where 680 such people reside.
In terms of growth, Pune leads the wealth index with 18%, followed by Hyderabad and Bengaluru with 15% each. Mumbai and Delhi's growth rate has been at 12% and 10% respectively.
On the other hand, there has been de-growth in the number of UHNWIs as compared to 2015-16 in the Venezuela (36%), Turkey (22%), Nigeria (20%), Brazil (14%), France (10%) and United Kingdom (5%). Whereas, Vietnam (18%), Canada (15%), India (12%), Australia (11%), New Zealand (11%), China (10%) and America (5%) have witnessed growth.
Nicholas Holt, head of research for Asia-Pacific, Knight Frank, said Mumbai ranks 15th when compared with other 124 cities on how much can $1 million can buy with 99 square metre while Delhi is at 196 sq mt. Monaco tops the chart with 17 sq mt for the same price followed by Hong Kong and New York at 20 sq mt and 26 sq mt, respectively.
Despite having millions of dollars and being among the wealthiest, philanthropy figures among the least important issues for the UHNWIs. "It concerns the least and is not a very important aspect," said Samantak Das, chief economist and national director research (India) for Knight Frank.
Their top priority or concern being sending their children overseas for education, succession plan and passing their wealth to the next generation.
The wealthy Indians allocate the highest proportion of their wealth for personal business followed with realty investments (domestic and abroad), investments in equities, precious metals, bond, etc, primary residences, collectables and others (that includes philanthropy).
The study showed that 40% Indians are anticipated to buy residential property outside India; the five most preferred countries being Singapore, UK, United Arab Emirates, US and Hong Kong.
Globally, UHNWIs prefer residential property in Europe. The primary factor for buying abroad is an overseas education for their children.
Within India, the report has identified seven hotspots around the world, presenting opportunities for private property investors, one of which is Bengaluru, others being Amsterdam, Miami, Berlin, Mexico City, Melbourne and Austin.
While Thane, next to Mumbai, has emerged as neighbourhood hotspot that is poised to outperform in four key categories of infrastructure, gentrification, technology and value hunters. The other being Mayfair – London, West – Aspen, Kamogawa River Area – Kyoto.
"Policy decision by the government has stalled luxury spendings," said Das. Similarly, there has been short-term adverse impact due to demonetization.
