City Wealth Index

Mumbai ranks 47 on the “city wealth index” of 314 global cities in the Knight Frank Wealth Report 2018.

India’s financial capital is also among the Top 20 costliest global cities; $1m or Rs.6.5 crore can buy a 990-square-foot house in Mumbai, said the report. Mumbai and Delhi, it added, would be among Top 10 markets to witness the highest addition in households earning over $2,50,000 or Rs.1.6 crore annually between 2017 and 2022.

In terms of wealth alone, wherein the index measures the rich and the rate of wealth generation in a city, Mumbai ranks among Top 20 with Delhi at 22nd and Bengaluru at 26th positions, respectively.

Property investment was amongst the lowest (17%) contributing factor that led to an increase in wealth amongst Indians compared with 30% for Asia and 50% globally.

While 95% respondents said that India’s wealthy people increased their investments into equities, 50% said that investments into property dwindled in 2017.

At 54%, India records one of the fastest growths in its Super Prime population (individuals with net worth of $50m or over Rs.330 crore) between 2012 and 2017. The country will add more than 2000 such individuals at a higher growth rate of 71% by 2022.

India is also expected to become the third largest contributor in Asia with respect to wealthy population after China and Japan.

The report is based on responses from more than 500 leading private bankers and wealth advisors across the world, tracking the super-rich population across 314 cities in 52 countries. The number of ultra-wealthy rose by 11,630 in 2017, taking the global total to 129,730.

India’s wealthy population in the prime ($5m or over Rs.32 crore) category rose to 47,720 individuals between 2016 and 2017, recording a 21% growth. This is more than double the global average (9%) and one and half times the Asia average (14%). “Even in terms of projections, the segment in India is expected to increase by staggering 71% between 2017 and 2022, again well above the Asia (61%) and the global average (43%),” said the Knight Frank report.

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