India ranks third in the projected absolute increase in UHNWI population over the next 10 years after China. (Represntational Image)
Highlights
- Mumbai has most number of ultra high net worth individuals in India
- Second spot goes to Delhi. Globally Mumbai and Delhi rank at 21 and 33
- By 2025, India to have 5% of ultra high net worth individuals in world
Mumbai has the most ultra high net worth individuals or UHNWI in India, followed by national capital Delhi, says a new global survey.
Mumbai and Delhi are currently 21 and 33 on a list of 97 cities in the world ranked for UHNWI and in the next 10 years, they are expected to move to number 14 and 29 respectively, says the Knight Frank Wealth Report 2016.
The report tracks ultra high net worth individuals or UHNWIs - defined as those with investable assets of $30 million or around rupees 20 crore. Mumbai has 1,094 UHNWIs and Delhi 545. By 2025, those numbers will be 2,243 and 1,128 respectively, the report estimates.
"Going forward, Mumbai will continue to maintain its number one position, but the rate of growth in UHNWI population will be marginally higher in New Delhi than in Mumbai," Knight Frank India Chief Economist and National Director - Research, Samantak Das, said.
According to the report, India ranks third in the projected absolute increase in UHNWI population over the next 10 years after China, with the US topping the list.
India is expected to account for five per cent of the total ultra high net worth individuals in the world by 2025, the study says, up from 1 per cent in 2005. The country's share in the total number of billionaires is also expected to rise to six per cent by 2025.
In the last 10 years, the report shows, the billionaire count in India jumped nearly fourfold to 78, while the global growth was just 68 per cent at 1,919.
The number of UHNWI rose by 340 per cent to 6,020 people, compared to the global growth of 61 per cent at 1,87,468.
The report says fine arts and antiques have replaced watches, while jewellery continues to be the most preferred collectible investment, followed by cars and bikes.
"In the last 10 years, 31 per cent Indian UHNWIs increased their asset allocations to residential real estate (primary or secondary home), and the number is likely to drop to 22 per cent by 2025," Das said.
He, however, said financial instruments remain the preferred investment asset class among wealthy Indians.
"Within real estate sector, commercial asset class is preferred over residential segment. Wealthy Indians will maintain this status quo with regard to their investment preferences in future," he added.