Number Of Ultra Rich In India To Rise 63% Within 5 Years, Says Knight Frank
The number of ultra-high net worth individuals, with wealth of $30 million or more, is expected to rise 63% over the next five years to 11,198 in India, the second fastest growth in the world, according to property consultant Knight Frank India report.
As per its Wealth Report 2021, there are currently 5,21,653 super rich globally, out of which India has 6,884 such individuals.
According to the report, the number of ultra-high networth individuals, those with $30 million or more, around the world is predicted to grow by 27% between 2020-25 -- taking this population to 6,63,483.
"India is expected to see an incredible growth of 63% by 2025, making it the second fastest growing country in terms of number of UHNWIs. The number of UHNWIs in India is expected to grow by 63% in the next five years to 11,198 in 2025," Knight Frank India said in a statement.
The billionaires club in India is expected to increase significantly by 43% to 162 by 2025 from the current 113 in 2020. The growth has outpaced global average growth of 24% and Asia average of 38% during this period.
The report predicts that in the regional context, Asia is likely to see the highest rise in the number of UHNWIs with the estimated growth of 39%. This will be led by Indonesia (67%) and India (63%).
"With the economic operability reaching high levels of its efficiency post the pandemic, India will be striding to make an entry into the $5-trillion club in the next few years," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
India is expected to further strengthen economically and gain a formidable position as an Asian superpower paving an ecosystem for the rise of new sunrise sectors, he said.
"The new economic opportunities will help bring lucrative wealth creation assets which will add new wealthy individuals in the country," Baijal said.
Mumbai has maximum UHNWIs at 920, followed by Delhi 375 and Bengaluru 238.
In terms of passions led investment, jewellery is the most preferred object of desire for Indian UHNWIs, followed by art, watches, wine and classic cars, the consultant said in a separate statement.
In line with global trends, Indian UHNWIs too cited a higher preference for wine, compared to rare whisky in 2020.
Herms handbags topped the Knight Frank Luxury Investment Index with prices increasing by 17% over the past 12-month period, ended December last year. Wine saw a 13% incremental value on investment, whereas rare whisky devaluated by 4%.
"There is a rise in the number of UHNWIs in India who intend to purchase a new home in 2021," the consultant said.
One out of five India's ultra-high net worth individuals plan to buy a new home in 2021, it added.
Knight Frank's Wealth Report 2021 in 15th edition assesses the change in fortune of the UHNWIs, spending and investing patterns, and attitudinal shifts expected in the year 2021.