Bengaluru, India’s Silicon Valley, is minting millionaires

Bengaluru, which was home to the fourth-highest number of India’s ultra-rich individuals in 2021, will see many more of them in the near future.

A Knight Frank wealth report on Tuesday expected the South Indian city to have 665 individuals with a net worth of $30 million and above by 2026, versus 352 in 2021, representing a growth of about 89%.

That will be way faster than the pace at which its ultra-rich population rose from 2016 to 2021 and higher than the growth estimates for other Indian cities.

The total population of ultra-high net worth individuals in India rose 11% year over year in 2021, the highest percentage growth in the Asia-Pacific region. Asia’s No. 3 economy also ranked sixth in the percentage growth of the ultra-rich population that is self-made and under the age of 40 years. Globally, the ultra-wealthy population rose 9.3% to 610,569 in 2021.

“Equity markets and digital adoption have been key factors driving the growth of ultra-high net worth individuals in India,” Shishir Baijal, Chairman & Managing Director, Knight Frank India said on Tuesday.

“The growth in younger, self-made ultra-high net worth individuals has been incredible in India and we foresee them to drive new investment themes and innovation,” Baijal said. “With a healthy growth in the UHNWI and billionaire population, India is expected to be one of the fastest growing countries amongst its global peers, further strengthening itself economically and emerging as a superpower in different sectors.”

While 29% wealth of the Indian ultra-rich was spent on buying principal and second homes, 22% was spent on direct purchases of commercial properties (such as offices and rental plots) and 8% was dedicated to the indirect purchase of commercial properties through real estate investment trusts and funds. Additionally, the report cited that 8% of the property portfolio was held overseas.

Monaco continues its reign as the world’s most expensive city where $1 million can get you 14.6 square metres of space followed by Hong Kong and London. Indian cities including Mumbai, Delhi and Bengaluru have all seen an increase in the amount of prime real estate that can be bought with $1 million due to appreciation of the dollar versus the rupee.

Art was the most preferred investment by India’s ultra-rich, followed by jewellery and classic cars.

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