A new report by property consultancy Knight Frank has mentioned that the number of ultra high net worth individuals (UHNWI) in India will grow at 50.1%. As per the report Ultra rich will grow to 19,908 by 2028. UHNWIs are defined as individuals with a net worth of $30 million and above.
“A range of factors will combine to propel India’s ultra wealthy population over the next five years. Robust economic growth, favourable demography and a thriving startup ecosystem will enable increased wealth creation opportunities for Indians going forward,” Vivek Rathi, who heads research at Knight Frank India, said.
The number of ultra rich saw a dip in 2022, however, the number grew 6.1% in 2023 to 13,263 driven by rising prosperity in India. Globally, the number of UHNWIs rose by 4.2% during the year to 6,26,619 from 6,01,300 a year earlier.
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The report throws insights on how the ultra rich spend.
About 32% of their wealth is invested in residential real estate, 14% of which is located outside India. The report further mentions that about 12% plan to purchase a new home in 2024. On an average an Indian UHNWI owns 2.57 homes, with a sizable 28% of the group renting out their second homes during 2023.
A 17% of Ultra rich's wealth is directed towards passion investment. The top three items invested in includes luxury watches, art and jewellery. Globally, art emerged as the best performing luxury asset class with prices appreciating 11% in 2023.
“The demand for rare collectibles is on the rise across different age groups in India, and as wealth continues to grow in the country, we can anticipate further investments in these asset classes,” Knight Frank India Chairman and Managing Director Shishir Baijal said.