Home / Companies / News /  India ranked 6th in growth rate of wealthy individuals in 2016: Knight Frank report

Mumbai: The number of super-wealthy Indians grew the sixth-fastest in the world between 2015 and 2016, the latest Wealth Report by Knight Frank, a global property consultant said.

The pace of adding ultra high net worth individuals (UHNWIs)—people with net worth of over $30 million—is expected to move up to the third spot in the next decade, the report added. The report lists the super-wealthy in 89 countries.

As per the report, the number of UHNWIs in India rose 290% in the last decade. During this period, around 500 new UHNWIs were added annually in India. Over the next decade, it is likely to increase to 1,000 every year.

At present, India has around 2% of the world’s millionaires (13.6 million) and 5% of world’s billionaires (2,024). Between 2015 and 2016, the country has witnessed a 12% increase in UHNWIs and is expected to grow at 150% over the next decade. Among 40 global cities, Mumbai is ranked 11th in the ‘future wealth’ category, ahead of Chicago, Sydney, Paris, Seoul and Dubai, the report said.

In India, Mumbai has maximum UHNWIs (1340) followed by Delhi (680), Kolkata (280) and Hyderabad (260). Indian cities that saw a rise in UHNWIs compared to 2015 include Pune (18%), Hyderabad and Bengaluru (both at 15%) and Mumbai (12%)

“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 avenue," Samantak Das, chief economist & national director-research, Knight Frank India said in the report.

As per the report, income returns do not feature in the top five priorities for UHNWIs in India. However, potential fall in asset values and political uncertainty is a major threat to wealth creation in the next five years.

According to the survey, 40% UHNWIs in India plan to buy overseas residential property . For Asia and globally, it was 32% and 30%, respectively. The UHNWIs in India prefer countries like Singapore, UK, UAE, US and Hong Kong for owning a home. However, the global wealthy give more preference to European countries.

“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,"said Nicholas Holt, head of research for Asia Pacific, Knight Frank Asia Pacific.

The top three overseas markets identified by Indian UHNWIs according to the survey are the UK, Singapore and the US.

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