3. • India has 2% of the world’s millionaires (13.6 mn), and
5% of the world’s billionaires (2,024)
• UHNWIs increased by 12% between 2015-16 and is
forecasted to grow by 150% during 2016-26
• The number of UHNWIs in India increased by 290%
during the last decade
• India ranks 6th in UHNWI growth rate for 2016, to move up
to 3rd rank for the next decade
7. TOP 5 FACTORS MOST IMPORTANT FOR -
MANAGEMENT OF WEALTH AND INVESTMENT DECISIONS
INDIA
Capital growth
Wealth preservation
Passing wealth to the
next generations
Portfolio liquidity
Portfolio diversification
GLOBAL &
ASIA
Wealth preservation
Capital growth
Passing wealth to the next
generations
Income return
Portfolio diversification /
liquidity
8. TOP 5 FACTORS MOST IMPORTANT FOR MILLENNIALS FOR -
MANAGEMENT OF WEALTH AND INVESTMENT DECISIONS
INDIA
Capital growth
Portfolio diversification
Looking for innovative
new ways to invest
Portfolio liquidity
Ability to move wealth
quickly around the
world
GLOBAL &
ASIA
Capital growth
Looking for innovative new
ways to invest
Portfolio diversification
Income return
Wealth preservation
9. POTENTIAL FALL IN ASSET VALUES, THE TOP THREAT
Succession / inheritance issues no more a top threat
India Asia Global
Potential fall in asset values 34% 30% 31%
Political uncertainty 24% 25% 35%
Rising taxes 21% 28% 25%
Tighter controls on movement
of capital
16% 27% 22%
Rising interest rates 16% 13% 12%
Last year, the top concerns for Indians were
1. Succession / inheritance issues 2. Global economy 3. Tax for the wealthy
4. Legislation directly affecting the wealthy 5. Stock market volatility
10. OVERSEAS EDUCATION OF CHILDREN, THE TOP CONTEMPORARY ASPECT
Succession / inheritance issues also important
India Asia Global
Choosing to send children overseas
for education
47% 38% 28%
Having a succession plan in place 21% 9% 13%
Worried about passing their wealth
to the next generation
18% 16% 22%
Taking a more personal role in
philanthropic endeavours
11% 6% 10%
11. BIGGEST CONCERNS REGARDING PASSING WEALTH TO THE
NEXT GENERATION
India Asia Global
Inheritance taxes 50% 58% 58%
Dividing wealth equitably
between their children
50% 56% 52%
Next generation will squander or
mismanage their inheritance
40% 63% 62%
Feel the next generation
should earn its own money
30% 32% 46%
Philanthropy issues 10% 9% 7%
12. PROPORTION OF WEALTH ALLOCATED
Personal business, the highest priority followed by real estate
India Asia Global
Personal business 29% 24% 23%
Real estate investments
(excluding primary residence and second homes)
23% 29% 24%
Investments
(equities, bond, cash, precious metals, etc.)
22% 24% 25%
Primary residences and second homes 14% 14% 16%
Collectables
(art, cars, wine, etc.)
8% 5% 6%
Other 4% 5% 6%
13. IMPORTANT FACTORS DETERMINING THE DECISION TO BUY
RESIDENTIAL PROPERTY TO LIVE
India Asia Global
Personal security 9.0 8.1 8.2
Opportunity for capital appreciation 8.5 7.8 7.4
Healthcare 8.5 7.4 7.1
Lifestyle 8.4 7.6 8.2
Education for children 8.1 8.0 7.5
Business reasons 8.0 6.9 6.8
Safe haven for capital 7.8 7.7 7.7
Access to transport links 7.7 7.1 6.9
Score out of 10
14. AVERAGE NUMBER OF RESIDENTIAL
PROPERTIES OWNED BY WEALTHY
INDIANS
3
Global 3
Asia 3
Last year, the average residential
property ownership across the globe
was 4
% OF WEALTHY LIKELY TO BUY ANOTHER
HOME OVER THE NEXT TWO YEARS
40
Global 30
Asia 32
Last year, just 16% Indians contemplated to buy
another residential property indicating the
sentiment revival in the current year
within their
country of residence
outside their
country of residence
25
Global 32
Asia 29
15. COUNTRIES WHERE THE WEALTHY ARE MOST LIKELY TO OWN A HOME
ASIAINDIA
Singapore
United Kingdom
UAE
USA
Hong Kong
GLOBAL
United Kingdom
USA
France
Spain
Switzerland
Singapore
United Kingdom
Hong Kong
USA
China
16. PROPERTY SECTORS ATTRACTING INTEREST
From 13% last year to 34% now, logistics has climbed up the list
India Asia Global
Offices 55% 48% 44%
Residential 48% 58% 60%
Logistics 34% 21% 17%
Healthcare 24% 23% 24%
Retail 17% 23% 29%
Leisure 17% 14% 16%
Industrial 10% 16% 18%
Renewable energy 7% 9% 18%
Agricultural 0% 0% 0%
17. COUNTRIES WHERE THE WEALTHY ARE MOST LIKELY TO OWN
COMMERCIAL PROPERTY
ASIAINDIA
Singapore
United Kingdom
USA
Canada
UAE
GLOBAL
United Kingdom
USA
Spain
Germany
Australia
Singapore
United Kingdom
China
USA
Hong Kong
21. FACTORS WHILE BUILDING LUXURY COLLECTIONS
For India, the top three factors remain the same as last year
India Asia Global
Status 8 7 7
Potential for an increase
in capital values
8 7 7
Personal enjoyment 8 8 8
Diversifying their investment portfolios 7 6 6
Becoming part of a community of like-
minded collectors/owners
7 6 6
Intellectual curiosity / developing own
knowledge / becoming an expert
7 6 6
Safe haven for capital 7 6 6
Score out of 10
22. LIKELY TO OWN THE FOLLOWING
In Asia, including India, the preference for these items as luxury investment and spending is
substantially lower than the global average
India Asia Global
Motor yacht 3.9 3.8 5.4
Sailing yacht 3.5 3.7 4.7
Private jet 3.1 3.4 4.4
Race horse 3.4 3.3 4.0
Sport team 2.9 2.8 3.3
Score out of 10
24. In the last 10 years, we saw additions of around 500 new UHNIs annually;
over the next decade, it will be approximately 1,000 every year
Out of 40 global cities, Mumbai ranks 11 in the ‘future wealth’ category ahead
of Chicago, Sydney, Paris, Seoul, Dubai
Mumbai at 21 in the city wealth index ahead of Toronto, Washington DC,
Moscow; Delhi at 35 ahead of Bangkok, Seattle, Jakarta
Office is the top property sector for investment; Logistics sees a three-fold rise
in terms of interest of wealthy Indians
Substantial proportion of wealthy Indians is likely to invest in residential
property in the next 2 years – 40% within country and 25% overseas
Notas do Editor
1. Indians prefer capital growth, whereas global counterparts focus on wealth preservation.
2. Unlike preferences of global wealthy, Income returns not a top 5 priority item for Indians.
1. Unlike the older generation, millennials assign top priority to capital growth and not wealth preservation.
2. In fact, in India wealth preservation does not appear among the top 5 priorities.
1. Potential fall in asset values is the top threat followed by political uncertainty
2. Succession/inheritance issues no more amongst the top threat
1. Overseas education of children appears to be the top contemporary aspect.
2. Succession planning including passing of wealth to the next generation is also an important aspect.
3. In 2016, same aspects ruled the mindset of wealthy Indians.
Inheritance tax and equitable distribution of wealth are top concerns for wealthy Indians.
Squandering of inherited wealth by next generation is the top concern for global counterparts.
In India, personal business is the highest priority, followed by real estate and then investment in financial instruments
In the global context, investment in financial instruments is the top priority. But, in the Asia region, real estate is the most preferred investment avenue.
1. Across the globe, personal security has emerged to be the most important factor determining the decision to buy residential property to live
In 2016, just 16% Indians contemplated to buy another residential property indicating the sentiment revival in the current year. For Asia and Global it was 27% and 29% respectively.
1. In India, the top countries are Singapore, UK, UAE, USA and Hong Kong. However, the preference of European countries is higher for the global wealthy.
For wealthy Indians, office trumps residential as the top property sector. In case of global counterparts, residential continues to be at the top.
Rising from 13% last year to 34% now, logistics has climbed up in the preference as the country lays impetus on ‘Make in India’ and unified indirect tax reform i.e. GST
For wealthy Indians, office trumps residential as the top property sector. In case of global counterparts, residential continues to be at the top.
Rising from 13% last year to 34% now, logistics has climbed up in the preference as the country lays impetus on ‘Make in India’ and unified indirect tax reform i.e. GST
In 2015, 72% had reported increased spending on luxury goods in India
Personal enjoyment is the most important factor for the global wealthy