According to Knight Frank’s The Wealth Report 2022, Mumbai was home to 1596 ultra-high net worth individuals (UHNWIs, with net worth of US$ 30m and above) in the year 2021, which is highest in the country. Further, the UHNWI population in the city is expected to increase by 29.6% to 2069 by 2026. In the last 5 years, Mumbai’s ultra-rich population has grown by 42.6% from 1,119 in 2016 to 1,596 in 2021.
In India, the number of UHNWIs grew by 11% YoY in 2021, the highest percentage growth in APAC. India also ranked 6th in percentage growth of the UHNWI population that is self-made and under the age of 40 years. Globally, the number of ultra-wealthy population saw an annual increase of 9.3% to 610,569 in 2021.
According to the Attitude Survey that is part of the Wealth Report 2022, 29% wealth of Indian UHNWIs is allocated towards purchase of principal and second homes. Further, 22% of UHNWIs investable wealth was allocated towards direct purchase of commercial property (including rental property, offices etc) while 8% of the investable wealth was allocated towards indirect purchase of commercial property (includes REITs, funds). Additionally, the survey cited that 8% of the property portfolio is held overseas.
HOW MUCH SPACE CAN US$1 MILLION BUY?
Monaco continues its reign as the world’s most expensive city where US$ 1 million can get you 14.6 square metres of space followed by Hong Kong (21.3 Sq.mt) and London (30.6sq.mt) in 2021.
Comparatively in Mumbai, you can purchase 108.1 square metres (1164.02sq.ft.) of prime residential real estate, 2% increase compared to 106 square meters (1140.9 sq. ft.) in 2020.
In Delhi, you can purchase 206.1 square metres (2218 sq.ft.) and Bengaluru 357.3 square metres (3845.9 sq.ft.) of prime residential real estate with an increase of 2.03% and 1.76% respectively.
PASSION LED INVESTMENTS
According to the attitude survey conducted by Knight Frank’s The Wealth Report 2022, 11% of the investable wealth of Indian ultra-high net worth individuals (UHNWI, whose net worth is US$ 30m or more) is allocated towards passion led investments against the global average of 16%. About 29% of Indian UHNWIs spent more on passion investments during the year 2021. Joy of ownership scored above investment returns and marked as the driving factor to collect investments of passion by the Indian ultra-rich Art was the most preferred investment by Indian UHNWIs, followed by Jewellery and Classic Cars. Luxury Handbags and Wines, slipped from their earlier 1st positions to 5th and 7th respectively in 2021. According to Knight Frank’s luxury investment index (global), Art provided a return of 13% in a 12 - month period and 75% over 10 years.