Knight Frank recently launched the 12th edition of The Wealth Report 2018. Based on responses from more than 500 leading private bankers and wealth advisors across the world the annual report provides a unique perspective on the key factors influencing investments and lifestyle decisions by the world’s UHNWI (Ultra High Net Worth Individuals) population.
Mumbai ranks 47th on the Knight Frank City Wealth Index among 314 global cities. The index is drawn from four major indicators such as wealth, investments, lifestyle and future.
In terms of wealth alone where in the index measures the number of the UHNWIs, HNWIs and rate of wealth generation in a city, Mumbai ranks in the top 20 with Delhi at 22nd and Bengaluru at 26th positions respectively.
India’s wealthy population in the prime (USD 5 mn +) category rose to 47,720 individuals between 2016 and 2017 recording 21% growth which is more than double the global average (9%) and one and half times the Asia average (14%). Even in terms of projections the segment in India is expected to increase by staggering 71% between 2017 and 2022, again well above the Asia (61%) and the global average (43%).
The nation’s affluent class in the super prime (USD 50 mn +) category also grew by 21% between 2016 and 2017, more than double the global average (10%) and above the Asia average of 15%. Between 2017 and 2022 India is expected to add more than 2000 individuals in this category, at a growth rate of 71% again well above the Asia (55%) and world average (40%).
The super rich in the country belonging to the trophy (USD 500 mn + category) also grew by 18% between 2016 and 2017 marginally above the global (11%) and the Asia average (16%). By the end of 2022 India is projected to have 340 individuals in this category at a growth rate of 70%.
India is projected to be the third largest contributor in terms of adding the highest number of wealthy individuals in Asia (10%) after China (47%) and Japan (10%).
Mumbai and Delhi would be among the top 10 markets to witness the highest addition in households earning more than USD 250,000 annually between 2017 and 2022.
Staggering 97% respondents said that the wealthy population in India saw an increase in their wealth as compared to 88% in Asia and 72% globally
Property investments was amongst the lowest (17%) contributing factors that led to increase in wealth amongst Indians, compared to 30% for Asia and 50% globally. While 95% respondents said that India’s wealthy people increased their investments into equities, 50% said that investments into property dwindled in 2017.
The investment allocation into property in India (36%) was lower than Asia (39%) and globally (43%). Majority of the respondents said that investments in gold (69%) and crypto currencies (71%) were unchanged in 2017.
Dr. Samantak Das, Chief Economist & National Director - Research, Knight Frank India said, “India is one of the major drivers of UHNWI population growth in Asia, which is a bright spot in the global landscape. At 71%, India shall record an accelerated growth in Super Prime population during 2017-2022 compared to an already high 56% growth witnessed in the past 5 years. However, the inclination to invest in property is lower for the ultra-wealthy Indians compared to their global peers. Only 23% wealthy Indians are interested to invest in property (excluding a primary residence and secondary home) in India compared to 43% globally.”
