India’s billionaire population to double by 2023

India is expected to pip China in terms of increase in billionaire population. China’s billionaire population is expected to grow 80% from 179 in 2013 to 322 by 2023. The highest growth in billionaires will be in Indonesia. The country had 23 billionaires in 2013 which is likely to increase to 56 by 2023.    

Despite continued economic turbulence and uncertainty in many countries, the number of ultra-wealthy individuals across the globe rose by 3% last year. Nearly 5,000 people joined the ranks of ultra-high net worth individuals (UHNWIs) in 2013, taking the number of individuals with US $30m or more in net assets to over 167,000 worldwide, according to exclusive new data prepared for The Wealth Report.

The number of UHNWIs across the world has ballooned by 59% since 2003, more than doubling in the Middle East, Latin America, Australasia and Africa. The number of centamillionaires – those with US$100m in net assets – has risen by 62%, while the tally of billionaires has climbed by 80% to 1,682, according to WealthInsight, a leading wealth intelligence firm.

Wealth creation in India, the world’s third-biggest economy, is also expected to accelerate, with the number of UHNWIs forecast to nearly double over the next decade.

This reflects the more positive outlook for India’s economy after 2013 was marked by capital outflows and a sharp devaluation of the rupee. This tough environment for wealth creation and preservation was reflected in the 1% decline in the number of UHNWIs in the country during the year.

  Forecast growth in billionaires

The survey covered over 23,000 ultra-high net worth individuals (UHNWIs) worth on average US $68 m each, with a combined wealth of more than US $ 1.5 trillion. UHNWI is defined as someone with US$30m or more in net assets excluding their principle residence.

The survey also highlights the spending habits of the uber-rich population. Unsurprisingly, as wealth increases worldwide, so too do levels of spending on luxury goods. According to Torsten Müller-Ötvös, Chief Executive of Rolls-Royce Motor Cars, much of the company’s record performance in 2013 was driven by emerging markets, with sales up 17% in the Middle East and 11% in China. Other hotspots included Japan, Istanbul, Beirut, Lagos, Hanoi and Perth.

House

For the majority of UHNWIs residential property is the biggest item of discretionary spending. Indeed, almost 30% of their wealth is accounted for by their main residence and any second homes, of which they own an average 2.4, according to the Attitudes Survey.

Property is not just a place to live; it is also a popular place to invest, accounting for 24% of UHNWI investment portfolios. Over 40% of survey respondents said their clients had increased their allocation to property last year, with 47% expecting it to rise further in 2014.

Luxury

Investments of passion – collectables such as art and classic cars – feature high on the shopping list of many UHNWIs. According to the Attitudes Survey, jewellery is the most widely collected on a global level, particularly in emerging markets, followed by art, watches and wine.

Worldwide, art is seeing the biggest jump in popularity, with UHNWIs in emerging markets once again setting the pace.

Philanthropy

The survey showed that only 6% expect their clients to decrease their philanthropic activities in 2014, with 21% predicting a rise. David Leppan, who has been closely involved with charity SOS Children’s Villages, which works to improve children’s lives through educational and sustainable programmes in disaster areas, believes that the wealthy have a responsibility to be philanthropic. In the US, he says, it is ingrained, often going as far back as three generations within families, but it is still a relatively new concept in emerging markets such as Asia.

Knight Frank is world’s largest independent property consultancy. The company works with with UHNWIs and their advisors through a network of 330 offices across 48 countries.