India's ultra-high net worth individual population to rise 50% by 2028

Hyderabad: Knight Frank's The Wealth Report 2024 reveals a projected 50.1% increase in India's ultra-high-net-worth individuals (UHNWIs), rising from 13,263 in 2023 to 19,908 by 2028. This growth represents the highest among countries over the next five years. Globally, UHNWIs are expected to rise by 28.1% to 802,891 by 2028, with a 4.2% increase in 2023 to 626,619 from 601,300 the previous year.

The report highlights India's 6.1% annual rise in UHNWI population in 2023, reaching 13,263. Moreover, 90% of Indian UHNWIs anticipate an increase in wealth in 2024, with 63% expecting growth exceeding 10%.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, remarked, "India showcases thriving prosperity and opportunities globally, with a remarkable 50.1% surge in UHNWI population expected in the next five years. The sentiment among Indian UHNWIs is optimistic, with 90% foreseeing a rise in fortunes in 2024."

Liam Bailey, global head of research at Knight Frank, noted, "The report raises questions about wealth mobility, whether growth remains in high-growth markets like Asia, or moves to Europe, Australasia, or North America. Strong growth outside Asia is seen in the Middle East, Australasia, and North America."

According to the Wealth Report 2024's Attitude Survey, 32% of India's ultra-high-net-worth individuals allocate their wealth to residential real estate, with 14% outside India. In 2024, 12% of India's UHNWIs plan to purchase a new home, while 22% of the ultra-wealthy globally are expected to do so. In terms of real estate affordability, US$1 million in Mumbai can purchase 103 sq. mt. of prime residential real estate, marking a 9% decline year-over-year. In Delhi and Bengaluru, the same amount buys 217 sq. mt. and 377 sq. mt. respectively.

The Knight Frank Luxury Investment Index (KFLII) for 2023 reveals art as the best-performing luxury asset class, with an 11% price increase. Despite a 9% depreciation, Whisky remains valuable, generating 280% returns over a decade. Among Indian UHNWIs, watches were the preferred investment, followed by art and classic cars. Globally, art was the top luxury investment, followed by watches and classic cars.

Knight Frank's Luxury Investment Index 2023:

- Art: 11% (12-month price change), 105% (10-year price change)

- Jewellery: 8%, 37%

- Watches: 5%, 138%

- Coins: 4%, 56%

- Coloured diamonds: 2%, 8%

- Wine: 1%, 146%

- KFLII: -1%, 100%

- Furniture: -2%, 40%

- Handbags: -4%, 67%

- Cars: -6%, 82%

- Rare Whisky: -9%, 280%

Top Investments of Passion (Global):

1. Art

2. Watches

3. Classic Cars

Top Investments of Passion (India):

1. Watches

2. Art

3. Classic Cars

The report concludes with insights into global trends in luxury investments, indicating a diverse landscape for wealth allocation and growth among ultra-high-net-worth individuals across various regions.