Ultra HNI population in India is expected to grow at 39% to reach 2697 by 2023, says the Knight Frank Wealth report, i.e. to 2697 individuals (with wealth over US$30 million or Rs. 208.77 crore). Philippines (38%) and China (35%) will follow India in terms of growth in ultra HNI population during this period.
India is witnessing a rapid growth in personal wealth, states the report with the country’s ultra HNI population growing by 24% in the last five years ending 2018.
Ultra HNI population trend in India
|
UHNI population |
UHNI population growth (%) |
|||||
|
2013 |
2017 |
2018 |
2023 |
2013–2018 |
2017–2018 |
2018–2023 |
|
1,576 |
1,827 |
1,947 |
2,697 |
24% |
7% |
39% |
Source: Knight Frank
Unsurprisingly, Mumbai and New Delhi are two prominent cities in terms of Ultra HNI population in India. With 797 such individuals residing in Mumbai in 2018, the city is home to 41% of the country’s UHNWI population. New Delhi meanwhile is home to 211 UHNWIs or 11% of the country’s wealthy population.
While Mumbai leads the country in terms of personal wealth, Bengaluru will lead the country in terms of wealth creation over the next five years. The city’s GDP is expected to grow by almost 60% in the next five years. Consequently, there will be 40% increase in the cities ultra HNI population in five years, shares the report.
Globally, ultra HNI population is expected to grow by 22% from 1.98 lakh in 2018 to 2.41 lakh in 2023.In the last one year ending 2018, the ultra HNI population in the world grew by 7,091 owing to growth in non-financial assets such as real estate. Other factors which drove ultra HNI growth were returns from both traditional and alternative investments, along with growth conditions in major economies, according to Williams. However, growth has been characterized by marked geographical differences. “In North America, financial assets are a major growth driver at the moment. In Europe and Asia, real estate is most important, said the report.
Ultra HNIs are increasingly investing in additional homes in cities and countries where they see greater levels of stability, in response to global uncertainty and political upheavals, said Andrew Hay, Global Head of Residential at Knight Frank. In India too, 24% of ultra HNIs have property investments, excluding first and second homes, outside India, up from 21% the previous year. Typically, Indian buyers are attracted by world class education opportunities for their children, new business ventures and stable investment returns. London, Melbourne and Dubai are popular among Indian wealthy. In addition, ultra HNIs in India are also looking at Cyprus, Malaysia and Sri Lanka for property investment, said the report.
