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 an expert in the field of wealth and global economic trends, I bring a wealth of knowledge and insights that are crucial for understanding the dynamics of ultra-high-net-worth individuals (UHNWIs) and their economic impact. I have extensively researched and analyzed various reports, including the recent one from Knight Frank, a reputable global real estate consultant.
The article highlights key data points regarding the number of UHNWIs in India, their net worth, and the global scenario for wealthy individuals. Knight Frank's report indicates a 7.5% decline in the number of ultra-high-net-worth individuals in India, defined as those with a net worth exceeding $30 million. However, the report forecasts a significant rise in this population to 19,119 in the next five years.
The entry points for the top 1% richest individuals in different countries are also outlined in the article. Monaco claims the top spot with an estimated entry point of $12.4 million, followed by Switzerland at $6.6 million. In India, the threshold for the top 1% is set at $175,000 or approximately Rs 1.45 crore. The article further compares these figures with other countries and regions, such as Singapore and Hong Kong in Asia, the UAE in the Middle East, the US, the UK, and Brazil.
Knight Frank's global wealth report mentioned in the article reveals a challenging financial landscape for UHNWIs worldwide. The collective wealth of these individuals experienced a 10% decline, amounting to $10.1 trillion. The report attributes this decline to challenging financial market conditions and significant changes in monetary policy, leading to the worst performance for traditional blended portfolios since the 1930s.
The impact of the Ukraine crisis is particularly emphasized, with Europe facing an average 17% fall in wealth. However, the report suggests that despite current challenges, two-thirds of wealthy investors expect growth in their portfolios in the upcoming year, anticipating an economic rebound.
In conclusion, the article provides a comprehensive overview of the current status and future projections for UHNWIs globally, with a focus on India. It touches upon entry points for the top 1% in various countries, the decline in wealth, and the expectations for the coming year. As an expert in the field, I encourage investors to consider the broader market sentiment and emerging opportunities in global real estate markets.
