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CAPITAL GROWTH, WEALTH PRESERVATION AND OVERSEAS EDUCATION HIGH ON UHNWIS’ AGENDA: KNIGHT FRANK WEALTH REPORT 2017

March 07, 2017 07:14 PM

Chandigarh (Face2News)

Delhi ranks 35th in the ‘City Wealth Index’ ahead of Bangkok, Seattle, Jakarta~

 Knight Frank, the independent global property consultancy, today launches the 11th edition of The Wealth Report 2017. The report tracks the growing super-rich population in 125 cities across 89 countries. The Wealth Reports yearly issue provides a unique perspective on the issues that are influencing UHNWI investment and lifestyle decisions. This year’s survey results are based on responses from almost 900 of the world’s leading private bankers and wealth advisors.

Key Takeaways – India
· In the last 10 years, we saw additions of around 500 new UHNWIs annually in India; over the next decade, it will be approximately 1,000 every year

· Out of 40 global cities, Mumbai ranks 11 in the ‘future wealth’ category ahead of Chicago, Sydney, Paris, Seoul, Dubai

· Mumbai at 21 in the city wealth index ahead of Toronto, Washington DC, Moscow; Delhi at 35 ahead of Bangkok, Seattle, Jakarta

· Office is the top property sector for investment; Logistics sees a three-fold rise in terms of interest of wealthy Indians

· Substantial proportion of wealthy Indians are likely to invest in residential property in the next 2 years – 40% within country and 25% overseas

· The millennial UHNWIs in India focus on capital growth compared to the older generation who also laid emphasis on wealth preservation

· According to the survey, Income returns do not feature in the top five priorities for UHNWIs in India. 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

· Overseas educations for their children also appears to top the UHNWIs agenda

· 40% Indians are anticipated to buy residential property outside their country of residence. For Asia and Global it was 32% and 30% respectively

· The UHNWIs in India prefer countries like Singapore, UK, UAE, USA and Hong Kong for owning a home. However, the Global Wealthy give more preference to European countries

· 27% of Indian UHNWIs have already invested in collectibles such as art, wine or classic cars

· Motor yacht is the most sought after luxury asset followed by sailing yacht, race horse, private jet and sports team. The preference for these items as luxury investment and spending is substantially lower than the global average

· 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 number of UHNWIs in India have increased by 290% during the last decade

· India houses 2% of the world’s millionaires (13.6 mn) and 5% of world’s billionaires (2,024)

· The country has witnessed a 12% increase of UHNWIs between 2015 and 2016 and is expected to grow at 150% over the next decade. The latest data on UHNWI indicate that developed markets are still an important destination to invest for UHNWI of the developing nations. Cities such as Sydney and Melbourne top the list of growth markets for investments. India and China are large net exporters of wealthy migrants

· Zooming in on the percentage growth forecast over the next decade, Pune (170%) tops the list, followed by Hyderabad and Bengaluru (both at 160%), Mumbai (150%), Delhi, Chennai and Kolkata (all at140%)

· In India, Mumbai leads the race with 1340 UHNWIs followed by Delhi (680), Kolkata (280) and Hyderabad (260) UHNWIs

· Indian cities that saw a rise in UHNWIs compared to 2015 include Pune (18%), Hyderabad and Bangalore (both at 15%) and Mumbai (12%)

· Bengaluru amongst the top seven hotspots around the world that present exciting opportunities for private property investors in 2017 and beyond

· In terms of most expensive prime residential i.e. the square metres of prime property US$1m will buy, Mumbai climbed up to rank 15 from 18 last year, ahead of Istanbul, Melbourne and Dubai

*(Definition of UHNWIs for Wealth Report - Those with US$30m or more in net assets – according to data provided by New World Wealth for Knight Frank Wealth Report)

Dr. Samantak Das, Chief Economist & National Director - Research, Knight Frank India said, “Over the last ten 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. Out of 40 global cities, Mumbai ranks 11 in terms of future wealth accumulation ahead of Chicago, Sydney, Paris, Seoul and Dubai. 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 India is reeling under pressure, 40% of wealthy Indians are likely to invest in residential property in India in the next two years while 25% are keen for overseas avenues.”

Nicholas Holt, Head of Research for Asia Pacific, Knight Frank Asia Pacific, says, “The Attitudes Survey shows us that more Indian UHNWIs are choosing to send their children overseas for secondary and tertiary education. This has property market implications – as parents are more likely to purchase property in overseas school or university locations, combining investment with the practicalities of housing their children. The top three overseas markets identified by Indian UHNWIs according to the survey are (in order): the UK, Singapore and the US – three of the markets we believe will be the target of Indian property investment going forward.”

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