Wealth of 9 in every 10 ultra-rich Indians rose in '22: Knight Frank report
This was more than the global average where 4 in every 10 UHNWI saw wealth growth
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The wealth of nine out of every 10 ultra-high-net-worth individuals (UHNWIs) in India increased in 2022, according to a report by real estate company Knight Frank. This is more than double the global average where four in every 10 enjoyed wealth growth.
According to the "Wealth Report 2023 Attitude Survey: India Findings" released on Monday, 35 per cent of the UHNWI Indians saw their wealth change by over 10 per cent.
"While the prolonged economic and geopolitical crisis continued to weigh down most of the prominent economies, India's resilient economic performance allowed the country to beat global trends in the year of permacrisis," the report said.
It added that a UHNWI in India owns 5.1 homes, which is higher than the global average of 4.1. And 37 per cent of the wealth of Indian UHNWIs is allocated to primary and secondary homes. This, too, is higher than the global average of 32 per cent.
Also, 84 per cent of the investable wealth of Indian UHNWIs is allocated between equities, real estate and bonds. Among these, the equity market emerged as the top segment with 34 per cent of their total wealth invested in it. It was followed by commercial property (25 per cent) and the bond market (16 per cent).
Globally, the highest amount of funds (33 per cent) was allocated to commercial property.
Liam Bailey, global head of research at Knight Frank, said that there will be a shift in the investment pattern in the coming year with more focus on real estate.
"With 69 per cent of UHNWIs expecting to see wealth growth in 2023 – we are anticipating a substantial shift in portfolio strategy – with a search for value opportunities in the real estate sector playing a much bigger role than in recent years,” he said. “Downward pressure on property values, due to higher interest rates, has created a window for private capital – especially as we enter this new market phase with historic lows in terms of the stock of best-in-class property in residential and commercial markets."
According to the "Wealth Report 2023 Attitude Survey: India Findings" released on Monday, 35 per cent of the UHNWI Indians saw their wealth change by over 10 per cent.
"While the prolonged economic and geopolitical crisis continued to weigh down most of the prominent economies, India's resilient economic performance allowed the country to beat global trends in the year of permacrisis," the report said.
It added that a UHNWI in India owns 5.1 homes, which is higher than the global average of 4.1. And 37 per cent of the wealth of Indian UHNWIs is allocated to primary and secondary homes. This, too, is higher than the global average of 32 per cent.
Also, 84 per cent of the investable wealth of Indian UHNWIs is allocated between equities, real estate and bonds. Among these, the equity market emerged as the top segment with 34 per cent of their total wealth invested in it. It was followed by commercial property (25 per cent) and the bond market (16 per cent).
Globally, the highest amount of funds (33 per cent) was allocated to commercial property.
Liam Bailey, global head of research at Knight Frank, said that there will be a shift in the investment pattern in the coming year with more focus on real estate.
"With 69 per cent of UHNWIs expecting to see wealth growth in 2023 – we are anticipating a substantial shift in portfolio strategy – with a search for value opportunities in the real estate sector playing a much bigger role than in recent years,” he said. “Downward pressure on property values, due to higher interest rates, has created a window for private capital – especially as we enter this new market phase with historic lows in terms of the stock of best-in-class property in residential and commercial markets."