As much as 32% of the wealth of India’s ultra-high-net-worth individuals (UHNWIs), defined as individuals with a net worth of over $30 million, is allocated towards residential real estate assets, according to the 2024 ‘Wealth Report’ released by Knight Frank India. The report also reveals that nearly 14% of their residential portfolio is located outside India. In 2024, about 12% of India’s UHNWIs are planning to purchase a new home, similar to the percentage of wealthy individuals who bought new homes in 2023. On average, an Indian UHNWI owns 2.57 homes, with 28% of them having rented out their second homes during 2023.
Globally, 22% of the ultra-wealthy are expected to purchase a home in 2024, and almost a fifth (19%) of UHNWIs plan to invest in commercial real estate, while more than a fifth (22%) intend to buy residential properties. The report also indicates that 23% of UHNWIs in India prefer investing in the most sustainable assets, particularly within the realm of Environmental, Social, and Governance (ESG) strategies. This sentiment is echoed globally, with 29% of UHNWIs expressing a similar inclination towards sustainable investments, citing a lower risk profile compared to other strategies. Noteworthy ESG strategies among affluent individuals in India include investment in renewable energy projects and exploring carbon sequestration opportunities through land acquisition.
Knight Frank’s report forecasts a significant increase in the number of Indian ultra-high-net-worth individuals (UHNWIs), expected to reach 19,908 by 2028 from 13,263 in 2023, representing a growth of 50.1%. This growth rate is the highest among any country for the next five years. Globally, the number of wealthy individuals is projected to surge by 28.1% to 802,891 by 2028. In 2023, the global UHNWI population increased by 4.2% to 626,619 from 601,300 the previous year, with India experiencing an annual rise of 6.1% in UHNWI population over the same period, reaching 13,263.
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