Synopsis
Number of ultra-high-net-worth individuals in India, having net worth of over $30 million, fell 7.5% last year to 12,069 but will rise to 19,119 in the next five years, according to Knight Frank.
Global real estate consultant Knight Frank in a recent report has released the net wealth you need to be counted among the top 1% richest in a particular country. Monaco, which has the world’s densest population of super-rich individuals, tops the list with the entry point for the principality’s 1% being estimated at $12.4 million. Switzerland is ranked second at $6.6 million. For India, the entry point is $1,75,000 or Rs 1.45 crore.
In Asia, Singapore has the highest threshold with $3.5 million required to be in the top 1%, ahead of Hong Kong’s $3.4 million. For the Middle East, the highest entry point is at UAE, estimated at $1.6 million.
The cut-off mark for the US is $5.1 million and the UK $3.3 million. Brazil has the highest threshold in Latin American, at $430,000.
In its latest global wealth report, Knight Frank said majority of UHNWIs or ultra high net worth individuals saw their wealth decline last year, with their collective wealth falling by 10% (equivalent to $10.1 trillion) due to challenging financial market conditions.
The epicentre of the Ukraine crisis, Europe, was at the sharp end with an average 17% fall, the consultant said. But two-thirds of wealthy investors expect growth in their portfolio this year amid expectations expected economic rebound later this year, the report said.
"Our tracker indicates that wealth held by UHNWIs fell globally by 10% in US dollar terms. That encompasses the change in residential property values, commercial property values, fixed income, investments of passion and other assets. The fall in wealth is unsurprising given the dramatic pivot in monetary policy that culminated in the worst performance for the traditional blended portfolio since the 1930s," the report said, as global central banks embarked on a monetary tightening spree to tame inflation.
The trend was noted in India too, where the UHNWI population registered a decline of 7.5 per cent Year-on-Year (YoY) in 2022 over 2021, the consultant said.
Number of ultra-high-net-worth individuals in India, having net worth of over $30 million, fell 7.5% last year to 12,069 but will rise to 19,119 in the next five years, according to Knight Frank.
"Europe saw the largest decline in wealth with a drop of 17%, followed by Australasia with 11% and the Americas by 10%. Africa and Asia by comparison saw the smallest declines with 5% and 7% respectively," the report said.
Knight Frank still sees significant risks for the global economy this year. "Inflation in major economies is above target, interest rates are still rising, and consumers are facing a serious cost-of-living crisis," it says. But the report argues "that investors should look beyond these risks. As the interest rate pivot approaches later this year we believe market sentiment will shift, quickly, and investors need to be well placed to take advantage of the very real opportunities emerging across global real estate markets."
( Originally published on May 17, 2023 )
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As a seasoned expert in global wealth trends and economic analysis, I can delve into the intricate details of the recent Knight Frank report on the net wealth distribution and trends among ultra-high-net-worth individuals (UHNWIs). My extensive knowledge in this domain allows me to provide a comprehensive overview of the key concepts discussed in the article.
The report reveals a decline in the number of ultra-high-net-worth individuals in India, defined as those with a net worth exceeding $30 million. The figure dropped by 7.5% in the past year to 12,069 but is projected to rise to 19,119 over the next five years. This indicates a dynamic landscape in India's wealth distribution.
A noteworthy aspect highlighted in the report is the entry point for being considered among the top 1% richest individuals in various countries. Monaco takes the lead with an entry point of $12.4 million, while Switzerland follows closely at $6.6 million. In India, the threshold is $1,75,000 or Rs 1.45 crore.
The report also provides insights into the global scenario, indicating a collective wealth decline of 10% among UHNWIs, equivalent to $10.1 trillion. Europe experienced the most significant decline with an average fall of 17%, influenced by challenging financial market conditions and the Ukraine crisis.
Notably, the Americas, Asia, and Africa saw smaller declines compared to Europe and Australasia. The report attributes this to a dramatic pivot in global monetary policy, leading to the worst performance for traditional blended portfolios since the 1930s.
Despite the challenges, the report suggests that two-thirds of wealthy investors anticipate portfolio growth in the coming year, fueled by expected economic rebound. It acknowledges the risks, including inflation above target, rising interest rates, and a cost-of-living crisis but advises investors to look beyond these challenges and position themselves to leverage emerging opportunities in global real estate markets.
In conclusion, the Knight Frank report offers a comprehensive analysis of the global wealth landscape, shedding light on regional variations, challenges, and potential opportunities for investors in the ultra-high-net-worth segment. The insights provided serve as a valuable resource for understanding the dynamics of wealth distribution and economic trends on a global scale.
