Bengaluru is home to 98 Ultra-High Net-Worth Individuals (UHNWIs), a growth of 36% over the last five years. Each of these individuals has a wealth of Rs 225 crore ($30 million) or more.
In 2013, the technology hub had 72 UHNWIs, according to The Wealth Report 2019 released by global property consultant Knight Frank on Wednesday.
Globally, Bengaluru is expected to see the highest growth rate of 40% over the next five years among 100 cities. By 2023, it is expected that Bengaluru will have 137 UHNWIs. Bengaluru is followed by Hangzhou in China, which is expected to see a growth of 34% in the next five years.
The Wealth Report 2019 provides global perspectives on prime property and wealth. The annual publication includes the Knight Frank City Wealth Index; price movements across 100 luxury residential property markets; the results of Knight Frank’s Luxury Investment Index; and the Attitudes Survey.
The Wealth Report revealed that Mumbai has jumped to the 12th rank from 18th highlighting significant wealth creation in the city. Bengaluru was placed 60th in terms of investments and superceded Mumbai and Delhi.
Overall, India leads with 39% growth, followed by the Philippines (38%) and China (35%). There are 1,947 UHNWIs in India, which is followed by the Philippines. UHNWIs in India grew by 7% in 2017 to 2018, which is well above the global average of 4% and the Asia average of 3%, the report said.
About 61% of Indian UHNWIs expect their wealth to increase in 2019, which shows confidence in the economic growth of the country.
Bengaluru is home to many companies including Infosys, Wipro, Flipkart, and over 400 multinationals like Microsoft, Hitachi and Samsung. This is supported by the fact that the city has been grossing the country’s highest office absorption volume consecutively for the last 10 years and is expected to lead the office growth trend in terms of investments as well as absorption.
“Despite softening momentum in the region’s economies, growth prospects in Asia remain favourable in the medium term," said Nicholas Holt, Head of Research, Knight Frank Asia Pacific. "While China’s economy is expected to slow, emerging markets such as India and the Philippines will deliver some of the strongest growth over the coming years.”
Bengaluru has made a commitment to creating a knowledge economy by investing in education centres, including the Indian Institute of Management Bengaluru, the Indian Institute of Science and the National Aerospace Laboratories.
“Bengaluru is the first amongst five eye-catching ‘cities of the future’ based on future economic potential. This growth, backed by its intrinsic potential from strong economic fundamentals, will attract investments from domestic as well as institutional sources,” said Shishir Baijal, Chairman and Managing Director, Knight Frank.