India’s ultra-wealthy population to grow by 58.4% in next 5 years: Knight Frank

India’s ultra-high-net-worth individuals (UHNWI) with a net worth over $30 million are expected to rise by 58.4% in the next five years from 12,069 in 2022 to 19,119 individuals in 2027, a report by global real estate consultant Knight Frank revealed on Wednesday.

The number of UHNWIs in India fell 7.5% to 12,069 in 2022 from 13,048 in 2021 on the back of an economic slowdown, interest rate hikes, the depreciating rupee, and geopolitical uncertainties tracking the global trend. Globally, the number of UHNWIs fell 3.8% in 2022 after it registered a record-breaking growth of 9.3% in 2021. This was due to the strong economic rebound in 2021 and its quick reversal in 2022. The total wealth held by UHNIs also fell by 10% in 2022.

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In spite of the dip, the global UHNI population grew by 44% in the five years to 2022. “While we forecast that this will slow down to 28.5% over the next five years, the recent dip will prove short-lived as we adapt to a new economic environment,” the report said.

“Emerging from the pandemic exigencies, Indian economy has demonstrated tremendous resilience and continues to be the fastest-growing major economy. With the influence of the global developments on monetary policy tightening, India too had its own share of increased credit costs and impact on asset values. However, these have been far more moderate compared to the western economies, highlighting a relatively better macro-economic scenario,” Vivek Rathi, Director- Research, Knight Frank India told DH. “Besides, in recent years, with India improving its ranks on global indices of business significance, the spotlight of global investors is on India. There is great optimism among the ultra-wealthy Indians to align their investment positions and capture these tailwinds. This also creates wealth creation opportunities and will translate into growth of UNHWI count in India in the next five years,” he added.

Asia’s UHNWI population fell by 6.5% yet three of the top 10 highest growth spots were held by Asian countries. Malaysia, Indonesia, and Singapore saw their wealthy populations expand by 7-9%. Europe was the hardest-hit region with a decline of 8.5%.

HNIs and billionaires

As of 2022, India is home to 797,714 high-net-worth individuals (HNIs), or those whose asset value is at $1 million or more. Such individuals will double in number – growing at a massive 107% in the next five years to 1.65 million. India's billionaire population is also expected to increase from 161 individuals in 2022 to 195 individuals in 2027, the report added.

The 1% club

The report also reveals how deep one's pockets must be to join the wealthiest 1% club in various countries. Monaco, which has the world’s densest population of super-rich individuals, tops the list with the entry point for the principality’s 1% being estimated at $12.4 million. Among Asian nations, Singapore has the highest threshold with $3.5 million required to be in the top 1%, ahead of Hong Kong's $3.4 million. India stood 22 above South Africa, Philippines and Kenya in the list of 25 countries in the company's wealth report with the entry-level at $175,000.