News

India’s wealthy population in key $5-million category rises 21%

Our Bureau Mumbai | Updated on March 08, 2018 Published on March 08, 2018

Mumbai ranks 47th among 314 global cities on Knight Frank wealth index

India’s wealthy population in the prime $5-million category rose to 47,720 individuals between 2016 and 2017, recording 21 per cent growth. This is twice the global average (nine per cent) and one- and-a-half times the Asia average (14 per cent), said a Knight Frank wealth report. Even in terms of projections, the segment in India is expected to increase by a staggering 71 per cent between 2017 and 2022, again well above the Asia (61 per cent) and the global average (43 per cent).

Knight Frank, an independent global property consultancy, on Wednesday launched the 12th edition of The Wealth Report. The report that tracks the burgeoning super-rich population in the world has nearly doubled its reach across 314 cities with a comprehensive analysis of 52 countries. The number of ultra-wealthy — those with $50 million or more in net assets — rose by 11,630 in 2017, taking the global total to 129,730.

The report also pointed that Mumbai ranks the 47th on the Knight Frank City Wealth Index. The index is drawn from four major indicators such as wealth, investments, lifestyle and future.

In terms of wealth alone, wherein 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 the 22nd and Bengaluru at 26th positions, respectively.

The nation’s affluent class in the super prime ($50 million-plus) category also grew 21 per cent between 2016 and 2017, more than double the global average (10 per cent) and above the Asia average of 15 per cent. Between 2017 and 2022, India is expected to add more than 2,000 individuals in this category, at a growth rate of 71 per cent, again well above the Asian (55 per cent) and world average (40 per cent).

Super-rich population

The super-rich in the country, belonging to the trophy ($500 million-plus) category also grew 18 per cent between 2016 and 2017, marginally above the global (11per cent) and the Asia average (16per cent). By the end of 2022, India is projected to have 340 individuals in this category at a growth rate of 70 per cent. India will be the third-largest contributor in Asia with respect to wealthy population, after China and Japan

The report pointed that Mumbai and Delhi will be among the top 10 markets to witness the highest addition in households earning more than $250,000 annually between 2017 and 2022. Mumbai is the 16th among the top 20 costliest global cities; $1 million can buy only 92 sq metres

Samantak Das, Chief Economist and 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 per cent, India shall record an accelerated growth in Super Prime population during 2017-2022 compared with an already high 56 per cent growth witnessed in the past five years. However, the inclination to invest in property is lower for the ultra-wealthy Indians compared with their global peers.

Only 23 per cent wealthy Indians are interested to invest in property (excluding a primary residence and secondary home) in India compared with 43 per cent globally. For those looking to invest outside India, the top choices are the UK, the US and the UAE. Amongst those willing to commit to property, we have seen a heightened level of interest in the asset class of commercial real estate, particularly office and logistics/warehousing, on the back of a stream of policy interventions.”

Published on March 08, 2018
This article is closed for comments.
Please Email the Editor