Population of wealthy Indians to grow 71% by 2022: Report

Mumbai :Population of wealthy Indians, with assets of over $50 million, is likely to grow by nearly 71% by 2022, becoming the third largest contributor in Asia with respect to wealthy population, a recent survey revealed.
According to property consultant Knight Frank’s Wealth Report 2018, at 54%, India records one of the fastest growth in its super prime population of individuals with a net worth of $50 million between 2012 and 2017.
“India is expected to add more than 2,000 such individuals at a higher growth rate of 71% by 2022. Cities like Mumbai and Delhi would be among the top 10 markets to witness the highest addition in household earning more than $250,000 annually between 2017 and 2022,” the report said.
The country is also expected to become the third largest contributor in Asia with respect to wealthy population after China and Japan, it said.
The report, which tracked the burgeoning super-rich population across 314 cities of 52 countries, revealed that the number of ultra-wealthy people, with $50 million or more in net assets, rose by 11,630 in 2017, taking the global total to 129,730.
In terms of wealth alone wherein the index measures the number of the ultra-high net worth and high net worth individuals and rate of wealth generation in a city, Mumbai ranks in the top 20 with Delhi at 22nd and Bengaluru at 26th positions, respectively.
According to the report, India’s wealthy population in the prime category (over $5 million of assets) rose to 47,720 individuals between 2016 and 2017 recording 21% growth which is more than double the global average of nine per cent and one-and-half times the Asia average which is 14%.
“India is one of the major drivers of ultra high net worth population growth in Asia, which is a bright spot in the global landscape. At 71%, India shall record an accelerated growth in super prime population during 2017- 2022 compared to an already high 56% growth witnessed in the past five years,” Knight Frank India chief economist and national director-research, Samantak Das told reporters.
However, the inclination to invest in property is lower for the ultra-wealthy Indians compared to their global peers, he added.
“Only 23% wealthy Indians are interested to invest in property (excluding a primary residence and secondary home) in India compared to 43% globally. For those looking to invest outside India, the top choices are the UK, the USA and the UAE,” he said.
Among those willing to commit to property, a heightened level of interest in the asset class of commercial real estate particularly office and logistics/warehousing is witnessed on the back of a stream of policy interventions, Das added.