Chennai expected to be the 4th fastest growing city
Chennai: According to Knight Frank’s The Wealth Report 2022, Chennai was home to 160 ultra-high net worth individuals (UHNWIs, with net worth of US$ 30m and above) in the year 2021. In the last 5 years, Chennai’s ultra-rich population grew by 64.2% from 97 in 2016 to 264 in 2021 making it the 4th fastest growing city in terms of UHNWIs during 2016-21. The ultra-wealthy population in the city is expected to increase by 65.6% to 264 by the year 2026.
In India, the number of UHNWIs grew by 11% YoY in 2021, the highest percentage growth in APAC. India also ranked 6thin percentage growth of the UHNWI population that is self-made and under the age of 40 years. Globally, the number of ultra-wealthy population saw an annual increase of 9.3% to 610,569 in 2021.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said “Equity markets and digital adoption have been key factors driving the growth of UHNWIs in India. The growth in younger, self-made UHNWIs has been incredible in India and we foresee them to drive new investment themes and innovation.”
According to the Attitude Survey that is part of the Wealth Report 2022, 29% wealth of Indian UHNWIs is allocated towards purchase of principal and second homes. Further, 22% of UHNWIs investable wealth was allocated towards direct purchase of commercial property (including rental property, offices etc) while 8% of the investable wealth was allocated towards indirect purchase of commercial property (includes REITs, funds). Additionally, the survey cited that 8% of the property portfolio is held overseas.
Art was the most preferred investment by Indian UHNWIs, followed by Jewellery and Classic Cars. Luxury Handbags and Wines, slipped from their earlier 1st positions to 5th and 7th respectively in 2021. According to Knight Frank’s luxury investment index (global), Art provided a return of 13% in a 12 – month period and 75% over 10 years.
