Number of UHNWIs set to double in coming decade: Report

The annual increase in the number of ultra high networth individuals (UHNWIs) in the country is all set to double during the next decade, a report said.
There will be an addition of 1,000 UHNWIs annually in the country over the next decade. In the last 10 years, the country has seen additions of around 500 new UHNWIs or those with USD 30 million or more in net assets annually.
Similarly, Mumbai, which currently ranks 21st among 40 global cities has improved its position to 11 in the 'future wealth' category, a report by Knight Frank said here today.
The country houses 2 per cent of the world's millionaires (13.6 mn) and 5 per cent of world's billionaires (2,024).

The report tracks the growing super-rich population in 125 cities across 89 countries. This year's survey results are based on responses from almost 900 of the world's leading private bankers and wealth advisors.
"Over the last 10 years we have seen annually 500 new UHNWIs being added in India and we expect this number to double to 1000 every year in the coming decade," Samantak Das, chief economist and national director-research, Knight Frank India said.

"Out of 40 global cities, Mumbai ranks 11 in terms of future wealth accumulation ahead of Chicago, Sydney, Paris, Seoul and Dubai," he said.
According to Das, in terms of real estate sector investment, the wealthy Indians have expressed their top priority in the office segment and logistics also sees a three-fold rise.

Even though the residential market in the country is reeling under pressure, 40 per cent of wealthy Indians are likely to invest in residential property in India in the next two years while 25 per cent are keen for overseas avenues, he added.
Talking about the impact of Donald Trump, the new President of the USA and the note-ban, on the country's UHNWIs, he said that though there is no direct impact visible, still indirectly they have been affected badly.
Besides, concerns are there in the real estate
industry due to the noteban, but there is no change in terms of office space transactions, he said.

Das was quick to add that the growth in the real estate sector may be subdued at present, still, it is all set to improve within next six months.
According to the report, the country has witnessed a 12 per cent increase of UHNWIs between 2015 and 2016 and is expected to grow at 150 per cent over the next decade.
The report indicates that developed markets are still an important destination to invest for UHNWIs of the developing nations.
Out of 40 global cities, Mumbai ranks 11 in the 'future wealth' category ahead of Chicago, Sydney, Paris, Seoul, Dubai. However, Mumbai, at 21, in the city's wealth index is ahead of Toronto, Washington, Moscow, Delhi at 35 is ahead of Bangkok, Seattle, Jakarta.

According to the survey, income returns do not feature in the top five priorities for UHNWIs in the country. However, they do feel that potential fall in asset values and political uncertainty as a major threat to wealth creation in the next five years.
The UHNWIs in India prefer countries like Singapore, UK, UAE, US and Hong Kong for owning a home. However, the Global Wealthy give more preference to European countries, the report said.
The report says that 27 per cent of Indian UHNWIs have already invested in collectibles such as art, wine or classic cars.
The country, as per the report, is likely to improve its ranking by three notches over next decade.

India ranks 6th in terms of growth rate of UHNWIs for 2016. With the current pace, the country is expected to move up to the 3rd spot over the next decade, the report said, adding that the number of UHNWIs in the country has increased by 290 per cent during the last decade.
Zooming in on the percentage growth forecast over the next decade, Pune (170 per cent) tops the list, followed by Hyderabad and Bengaluru (both at 160 per cent), Mumbai (150 per cent), Delhi, Chennai and Kolkata (all at 140 per cent).
There are a total of 6,740 UHNWIs in the country and Mumbai leads the race with 1,340 UHNWIs followed by Delhi (680), Kolkata (280) and Hyderabad (260) UHNWIs.

Indian cities, the report goes on, saw a rise in UHNWIs compared to 2015 include Pune (18 per cent), Hyderabad and Bengaluru (both at 15 per cent) and Mumbai (12 per cent).
In terms of most expensive prime residential property, Mumbai climbed up to rank 15 from 18 last year, ahead of Istanbul, Melbourne and Dubai, the report said.