Knight Frank, an international property consultancy, has released its Wealth Report 2021, which reveals interesting information about India’s ultra-high-net-worth individuals (UHNWIs). This is the 15th edition of the report, which assesses the change in fortune of the UHNWIs, spending and investing patterns, and attitudinal shifts expected in 2021.
In spite of the uncertainty in the global market, the UHNWIs Indians in 2020 experienced a 59 per cent increase in their wealth. Knight Frank predicts that Asia is likely to see the largest rise in the number of UHNWIs with an estimated growth of 39 per cent, led by Indonesia (67 per cent) and India (63 per cent).
The report cites that this population i.e. those with US$30 million or more is expected to grow by 63 per cent in the next five years. Currently, the country is home to 6,884 UHNWIs, and in five years the number is expected to reach 11,198.
The billionaires club in India (113 billionaires) is expected to increase significantly by 43 per cent (162 billionaires) by 2025. The growth is expected to outpace the global average growth of 24 per cent and Asia average of 38 per cent during the period. As per the report, an individual requires US$ 60,000 to join the wealthiest 1 per cent club in India. The wealth growth forecasts show that this club may almost double in the next five years.
Globally, 43 per cent of UHNWIs are more interested in environmental, social and governance (ESG) focused investments than 12 months ago. In India, 46 per cent of UHNWIs are interested in ESG focused property investments, however, awareness of it is still evolving. 89 per cent of Indian UHNWIs feel they need more information to assess ESG related investment opportunities.
Amongst this rich populace, in terms of passion-led investment, jewellery is the most preferred object of desire, followed by art, watches, wine and classic cars. In line with global trends, Indian UHNWIs too cited a higher preference for wine, compared to rare whisky in 2020.
According to The Attitudes Survey conducted by the company as part of Knight Frank’s The Wealth Report 2021, there is a rise in the number of UHNWIs in India who intend to purchase a new home in 2021. 1 out of 5 plan to buy a new home in 2021 compared to 1 out of 10 in 2020. The pandemic has influenced attitudinal shifts in residential purchase, with the emergence of coastal and ski destinations as new preferred locations globally. In India, 41 per cent of the UHNWIs are more likely to purchase a new house in resorts/coastal area.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said “With the economic operability reaching high levels of its efficiency post the pandemic, India will make strides to make an entry into the 5-trillion-dollar club in the next few years. India is expected to further economically strengthen and gain a formidable position as an Asian superpower paving an ecosystem for the rise of new sunrise sectors,”
He further adds that the new economic opportunities will help bring lucrative wealth creation assets which may add new wealthy individuals in the country.
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