You can buy only 92 sq metres for $1 mn in Mumbai, ranking it 16 among top 20 costliest cities globally: Knight Frank report

Mumbai comes top in terms of cost of real estate and the number of wealthy residing in the city, according to the Knight Frank City Wealth Index. The city ranks 16 among the top 20 costliest global cities. How expensive? For $1 million, you can buy only 92 sq. metres.
A staggering 97 percent respondents said that the wealthy population in India saw an increase in their wealth as compared to 88 percent in Asia and 72 percent globally

The index is drawn from four major indicators such as wealth, investments, lifestyle and future. Knight Frank, the independent global property consultancy launched the 12th edition of The Wealth Report 2018, today. The report tracks the burgeoning super-rich population in the world has nearly doubled its reach across 314 cities and comprehensive analysis of 52 countries. The number of ultra-wealthy – those with $ 50 million or more in net assets – rose by 11,630 in 2017, taking the global total to 129,730. Based on responses from more than 500 leading private bankers and wealth advisors across the world the annual report provides a unique perspective on the key factors influencing investments and lifestyle decisions by the world’s Ultra High Net Worth Individuals (UHNWI ) population.

Here are the key findings of the report:

Global ranking: Mumbai ranks 47 among 314 global cities

Wealth: Mumbai ranks in the top 20 with Delhi at 22nd and Bengaluru at 26th positions respectively in terms of wealth alone wherein the index measures the number of the ultra high net worth individuals, High Net Worth Individuals (HNWIs) and rate of wealth generation in a city,

Rise in wealthy individuals: The country’s wealthy population in the prime ($5 mn +) category rose to 47,720 individuals between 2016 and 2017 recording 21 percent growth which is more than double the global average (9 percent) and one and half times the Asia average (14 percent). Even in terms of projections, this segment in India is expected to increase by a staggering 71 percent between 2017 and 2022, again well above the Asia (61 percent) and the global average (43 percent). Affluent class in the super prime ($50 mn +) category also grew by 21 percent between 2016 and 2017, more than double the global average (10 percent) and above the Asia average of 15 percent. Between 2017 and 2022, India is expected to add more than 2000 individuals in this category, at a growth rate of 71 percent again well above the Asia (55 percent) and world average (40 percent).

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Representational image.

Rise in super-rich tribe: The super-rich in the country belonging to the trophy ($500 mn + category) also grew by 18 percent between 2016 and 2017 marginally above the global (11 percent) and the Asia average (16 percent). By the end of 2022, India is projected to have 340 individuals in this category at a growth rate of 70 percent.

India edging to rank 3 in Asia: The country is set to emerge as 3rd largest contributor in terms of adding the highest number of wealthy individuals in Asia (10 percent) after China (47 percent) and Japan (10 percent)

Highest addition in household earnings: Mumbai and Delhi would be among the top 10 markets to witness the highest addition in households earning more than $250,000 annually between 2017 and 2022

Property investments lowest: India ranked amongst the lowest (17%) contributing factors that led to increase in wealth amongst Indians, compared to 30 percent for Asia and 50 percent globally. While 95 percent respondents said that India’s wealthy people increased their investments into equities, 50 percent said that investments into property dwindled in 2017. The investment allocation into property in India at 36 percent was lower than 39 percent in Asia and globally at 43 percent. Majority of the respondents said that investments in gold (69 percent) and crypto currencies (71 percent) were unchanged in 2017

Dr. Samantak Das, Chief Economist & National Director - Research, Knight Frank India said, “India is one of the major drivers of UHNWI population growth in Asia, which is a bright spot in the global landscape. At 71 percent, India shall record an accelerated growth in Super Prime population during 2017-2022 compared to an already high 56 percent growth witnessed in the past 5 years. However, the inclination to invest in property is lower for the ultra-wealthy Indians compared to their global peers. Only 23 percent wealthy Indians are interested to invest in property (excluding a primary residence and secondary home) in India compared to 43 percent globally. For those looking to invest outside India, the top choices are UK, USA and UAE. Amongst those willing to commit to property, we have seen a heightened level of interest in the asset class of commercial real estate particularly office and logistics/warehousing on the back of a stream of policy interventions.”

Updated Date: Mar 07, 2018 19:00:47 IST