NEW DELHI: Nearly 30 per cent wealth of Indian ultra-high-net-worth individuals (UHNWIs) was allocated towards the purchase of principal and second housing properties last year, according to property consultant Knight Frank.
In its attitude survey, part of the Wealth Report 2022, Knight Frank India said that 29 per cent wealth of Indian ultra-wealthy, (those having a net worth of USD 30 million and above), is allocated towards purchase of principal and second homes.
Further, 22 per cent of these individuals' investable wealth was allocated towards direct purchase of commercial property (including rental property, offices, etc) while 8 per cent was allocated towards indirect purchase of commercial property (including REITs, funds, etc.) Additionally, the survey cited that 8 per cent of the property portfolio was held overseas.
The number of ultra-high-net-worth individuals in India increased 11 per cent last year. It grew to 13,637 in 2021 from 12,287 in the previous year.
Moreover, India reportedly ranked third in billionaire population globally in 2021. The US is number one with 748 billionaires, followed by the Chinese mainland at 554 billionaires and India with 145 billionaires.
As per the report, 10 per cent of India's ultra-wealthy plan to buy a new home while Globally, 21% of such individuals are expected to purchase a home in 2022.
Indian ultra-wealthy prefer to invest in properties in the domestic market (home country India), followed by international markets of the UK, the UAE and the US. On an average an Indian UHNWI owns 2.3 homes and 32 per cent of the Indian ultra-wealthy have rented out their second homes during 2021.
Knight Frank India Chairman and Managing Director Shishir Baijal said: " Investment in the real estate sector in India has grown in recent times especially in the wake of the pandemic as real estate was viewed as a safe and tangible investment option amidst the economic volatility.
"Further, at attractive valuations, real estate continued to drive institutional demand."
"Our survey indicates that the investor interest will remain stable in 2022," Shishir Baijal added.