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Knight Frank, the real estate consultancy major has published a report that has predicted that in the five years between 2023 and 2028, the number of ultra-high networth persons would register the highest growth in India. The study titled ‘The Wealth Report 2024′ said the number of ultra-rich Indians would leap from 13,263 in 2023 to 19,908 in 2028 – an increase of 50%.

Last year the number of ultra-high networth people rose in India by 6.1% compared to 2022.

The report, made public on February 28, reckons anyone with a networth of $30 million or more to be ultra-high networth individual (UHNWIs), the Business Standard has reported.

The countries following India in the list are China, where UHNWIs are set to rise by 47%, Türkiye (42.9%) and Malaysia (35%). Liam Bailey, global head of research at Knight Frank, told the newspaper that the key reason for this is the robust growth of India’s GDP.

“The primary reason is the outlook for the Indian economy. We use economic forecasts in terms of GDP growth for each country that we cover. And there, the view is that the Indian economy is set to outperform over the next five years. That is the biggest driver,” Bailey told the newspaper.

High level of innovation and strong connection with outside businesses and countries would also facilitate the growth of the wealthy, he added.

It is clear from the list of countries that growth in Asia will dominate the rise in the number of ultra-rich. In the entire continent, ultra-rich persons are supposed to grow by 38.3% in the next five years. At the global level, the number of ultra-rich is likely to rise far slower – at 28.1%.

“The centre of gravity of the world economy has moved towards Asia, and the process is continuing,” said the research head of Knight Frank. He expected that regions such as West Asia and North America would follow Asia in terms of generating ultra-rich individuals.

“Ninety percent of Indian UHNWIs are expecting an increase in their wealth this year,” the report mentioned. Around 63% of these people think their wealth would grow by more than 10% in 2024.

“While global uncertainty prevails, easing domestic inflationary risks and the likelihood of rate cuts will further accentuate the growth of the Indian economy, and the reflection of this sentiment is echoed by wealthy Indians,” Shishir Baijal, chairman and managing director at Knight Frank India told the newspaper.

Knight Frank also revealed that the ultra-rich Indians displayed a marked liking for expensive watches in 2023. Art and jewellery followed in the list of preference.

Knight Frank’s Luxury Investment Index 2023 stated the expenditure on watches jumped 138% in the past one year followed by 105% for artworks and 37% for jewellery.

The trend in India is slightly different from that across the globe where Globally, the trends are slightly different art tops the list followed by watches and classic cars.

“With both domestic and global markets offering significantly higher returns for such items, India’s ultra-wealthy are actively pursuing investment opportunities in areas aligned with their passions. The demand for rare collectibles is on the rise across different age groups in India, and as wealth continues to grow in the country, we can anticipate further investments in these asset classes,” added Baijal.

(ENDS)