Mumbai, New Delhi home to highest number of super rich
India is expected to account for five percent of the total ultra high net worth individuals (UHNWIs) in the world by 2025, a study said.
Zee Media Bureau
Mumbai: Mumbai, India's commercial capital, is home to highest number of super rich in the country, as per Knight Frank Wealth Report 2016. Mumbai is also expected to account for five percent of the total ultra high net worth individuals (UHNWIs) in the world by 2025, a study also said.
The report says, "Among Indian cities, Mumbai leads the pack followed by New Delhi. 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."
According to 'Knight Frank Wealth Report 2016', the country's share in the total number of billionaires is also expected to rise to six percent by 2025.
In the last 10 years, the billionaire count in India jumped nearly fourfold to 78, while the global growth was just 68 percent at 1,919.
Similarly, UHNWI count over the period rose by 340 percent to 6,020 people, compared to the global growth of 61 percent at 1,87,468.
In 2005, India's share of world's UHNWI population stood at 1 percent.
"Looking at the past numbers, we believe by 2025, India will account for 6 per cent of global billionaire population and 5 per cent of UHNWI population," 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.
"Even though the rate of growth in the number of Indian UHNWIs over the next 10 years in India will slow down, it will still be much higher than the global average," Das said.
Out of 97 cities globally, Mumbai and Delhi, currently ranked 21 and 33, are slated to move up to 14 and 29 positions respectively by 2025, the report said.
Currently, with 1,094 UHNWIs, Mumbai leads in India, followed by Delhi with 545. The next decade is expected to see Mumbai's UHNWIs increase to 2,243, while Delhi's count will stand at 1,128.
"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," Das said.
The report pointed out that 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 percent Indian UHNWIs increased their asset allocations to residential real estate (primary or secondary home), and the number is likely to drop to 22 percent 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.
With PTI Inputs