Mumbai ranks 47th on the ‘city wealth index’ among 314 global cities
March 7, 2018, Bengaluru– Knight Frank, the independent global property consultancy, today launches the 12th edition of The Wealth Report 2018. The report that tracks the burgeoning super-rich population in the world has nearly doubled its reach across 314 cities and comprehensive analysis of 52 countries. The number of ultra-wealthy – those with USD 50mn or more in net assets – rose by 11,630 in 2017, taking the global total to 129,730. Based on responses from more than 500 leading private bankers and wealth advisors across the world the annual report provides a unique perspective on the key factors influencing investments and lifestyle decisions by the world’s UHNWI population.
Key Takeaways – India
· Mumbai ranks 47th on the Knight FrankCity Wealth Index among 314 global cities. The index is drawn from four majorindicators such as wealth, investments, lifestyle and future
· In terms of wealth alone where in the index measuresthe number of the UHNWIs, HNWIs
and rate of wealth generation in a city, Mumbai ranks in thetop 20 with Delhi at 22nd and Bengaluru at 26th positionsrespectively.
· India’s wealthy population in the prime (USD 5 mn +)category rose to 47,720 individuals between 2016 and 2017 recording 21% growthwhich is more than double the global average (9%) and one and half times theAsia average (14%). Even in terms of projections the segment in India isexpected to increase by staggering 71% between 2017 and 2022, again well abovethe Asia (61%) and the global average (43%)
· The nation’s affluent class in the super prime (USD50 mn +) category also grew by 21% between 2016 and 2017, more than double theglobal average (10%) and above the Asia average of 15%. Between 2017 and 2022India is expected to add more than 2000 individuals in this category, at agrowth rate of 71% again well above the Asia (55%) and world average (40%).
· The superrich in the country belonging to the trophy(USD 500 mn + category) also grew by 18% between 2016 and 2017 marginally abovethe global (11%) and the Asia average (16%). By the end of 2022 India isprojected to have 340 individuals in this category at a growth rate of 70%
· India would be the 3rd largestcontributor in Asia with respect to wealthy population after China and Japan
· Mumbai and Delhi would be among the top 10 markets towitness the highest addition in households earning more than USD 250,000annually between 2017 and 2022
·Mumbai is 16th among the top 20 costliestglobal cities; USD 1 million can buy only 92 sq. metres
· Staggering 97% respondents that the wealthypopulation in India saw an increase in their wealth as compared to 88% in Asiaand 72% globally.
· Property investments was amongst the lowest (17%)contributing factors that led to increase in wealth amongst Indians, comparedto 30% for Asia and 50% globally
· While 95% respondents said that India’s wealthypeople increased their investments into equities, 50% said that investmentsinto property dwindled in 2017.
· The investment allocation into property in India(36%) was lower than Asia (39%) and globally (43%)
· Majority of the respondents said that investments ingold (69%) and crypto currencies (71%) were unchanged in 2017.
Dr. Samantak Das, Chief Economist & National Director- Research, Knight Frank India said, “India is one of themajor drivers of UHNWI population growth in Asia, which is a bright spot in theglobal landscape. At 71%, India shall record an accelerated growth in SuperPrime population during 2017-2022 compared to an already high 56% growthwitnessed in the past 5 years. However, the inclination to invest in propertyis lower for the ultra-wealthy Indians compared to their global peers. Only 23%wealthy Indians are interested to invest in property (excluding a primaryresidence and secondary home) in India compared to 43% globally. For thoselooking to invest outside India, the top choices are UK, USA and UAE. Amongstthose willing to commit to property, we have seen a heightened level ofinterest in the asset class of commercial real estate particularly office andlogistics/warehousing on the back of a stream of policy interventions.”
Nicholas Holt, Head of Research for Asia Pacific, KnightFrank Asia Pacific, says, “2017 was a relativelystrong year for growth in Asia-Pacific, which has been reflected in the growthin wealthy individuals across the region. Despite global headwinds including arising interest rate environment, the continued rebalancing of the Chineseeconomy and tensions around trade, the region is set for further growth in2018, with wealth increasingly being accumulated through new sources of growthincluding technology related industries.”