The number of super wealthy individuals in India will rise at the fastest rate of 50% to 19,908 during the next five years from 13,263 in 2023, which is way higher than the global average of 28.1% rise, according to the latest wealth report by Knight Frank.
Knight Frank's latest "The Wealth Report 2024" points to strong outperformance from Asia, with high growth in India (50%) and China(47%). India's high gross domestic product (GDP) growth rate has been attributed to the significant rise in the ultra-rich.
"Our model points to strong outperformance from Asia, with high growth in India (50%), the Chinese mainland (47%), Malaysia (35%) and Indonesia (34%)," says the latest report by UK-based global property consultancy.
The Wealth Report 2024 says 90% of Indian UHNWIs (ultra-high-net-worth individuals) are expecting an increase in wealth this year. "Almost 63% of these UHNWIs expect a significant increase of more than 10% in their wealth."
The number of wealthy individuals globally is expected to surge by 28.1% to 8,02,891 by 2028. In 2023, the number of UHNWIs globally rose to 4.2%, 626,619 from 601,300 a year earlier. "India saw an annual rise of 6.1% in UHNWI population in 2023 over the previous year, which was recorded at 13,263," the report adds.
Shishir Baijal, chairman & MD, Knight Frank India, says with 90% of Indian UHNWIs envisioning a surge in their fortunes in 2024, the landscape of affluence is vibrant and dynamic. "While global uncertainty prevails, easing domestic inflationary risks and the likelihood of rate cuts will further accentuate the growth of Indian economy, and the reflection of this sentiment is echoed by wealthy Indians.”
Liam Bailey, Knight Frank's global head of research, says with the mobility of wealth increasing all the time, a key question is whether future growth remains within these and other high-growth markets, or whether there is a leakage of talent to Europe, Australasia or North America.
Knight Frank’s Attitude Survey, which is part of the Wealth Report 2024, says among 32% of India’s UHNWIs (individuals with a net worth of US$ 30 mn and above), wealth is allocated towards residential real estate asset class, and nearly 14% of the residential portfolio is allocated outside India.
About 12% of India’s UHNWIs plan to buy a new home in 2024, while a similar percentage of wealthy individuals in India responded to have purchased a new home in 2023. Globally, 22% of the ultra-wealthy are expected to purchase a home in 2024. The report further highlighted that on average an Indian UHNWI owns 2.57 homes and 28% of the surveyed UHNWIs have rented out their second homes during 2023.
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