Knight Frank, an international property consultancy publishes the Wealth Report which dives into emerging trends in global wealth and property markets, annually.
The 2021 edition was of particular interest to me, as I was curious to know the impact of the ongoing global pandemic on trends in wealth.
Here’s a list of 3 facts and trends that I’ve found most interesting in their latest report.
How Rich Are You?
A net worth of US$60000 / INR 44 lakhs places you in the top 1 % of wealthy Indians. This number is expected to double every five years.
To be in the top 0.01% you’d need US$ 280000/ INR 2.05 crores.
These numbers seem too low to be true for India. But given the huge population of 1.39 billion, they might just be accurate.
Globally, Monaco, with the world’s densest population of the super rich, has the highest 1% threshold of US$ 7.9m. Switzerland comes in second at US$ 5.1m and USA third at US$ 4.4m, even though it has the highest number of UHNWI residents.
Growth in the Affluent
UHNWI – Ultra high net worth individuals i.e above $30 million in net worth
Asia had a 12% growth in UHNWI population over the past 12 months despite the pandemic, mainly due to lower interest rates and surges in asset prices. Latin America, Russia and the Middle East however saw a fall in their UHNWI numbers.
India’s UHNWI population is expected to grow by 63% in the next five years. The number of Indian billionaires is expected to grow at 43% from 113 to 162 by 2025. This rate is higher than both the global average of 24% and asian average of 38%.
Residential Boom
Over the past 12 months, there has been an average price growth across world’s leading prime residential markets.
Surveys reveal that 26% of UHNWIs are planning to buy a new home in 2021.
In India, 1 out of 5 UNHWI’s plan to buy a new home in 2021, an improvement compared to 1 out of 10 in 2020. They were particularly interested in recreational homes around coastal and mountain areas. Demand rose for homes in locations offering wellness and wellbeing solutions ever since the pandemic.
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