Globally, 22 per cent of the ultra-wealthy are expected to purchase a home in 2024.
Credit: DH Photo
New Delhi: India's super rich have allocated 32 per cent of their wealth in residential properties in the country and overseas, Knight Frank said in a report on Wednesday.
As per real estate consultant Knight Frank's The Wealth Report 2024, 32 per cent of India's Ultra-High-Net-Worth Individuals' (UHNWIs) wealth is allocated towards residential real estate asset class.
Nearly 14 per cent of their residential portfolio is allocated outside India.
UHNWIs are individuals with a net worth of USD 30 million and above.
On an average, an Indian UHNWI owns 2.57 homes while a sizable 28 per cent have rented out their second homes during 2023, the report said.
According to Knight Frank, about 12 per cent of the country's UHNWIs plan to buy a new home in 2024. A similar percentage of wealthy individuals in India purchased a new home last year.
Globally, 22 per cent of the ultra-wealthy are expected to purchase a home in 2024.
Knight Frank India Chairman and Managing Director Shishir Baijal said, "The prime residential assets continue to be the mainstream investment avenue for ultra-wealthy individuals in the country."
Separately, the report noted that Mumbai ranked 8th on Knight Frank's Prime International Residential Index (PIRI) index in 2023 as compared to the 37th rank in 2022, driven by 10 per cent year-on-year growth in terms of annual luxury residential price rise.
This jump has marked a place for Mumbai in the top 10 leading luxury residential markets.
Manila (26 per cent growth) leads the rankings while last year's frontrunner Dubai (16 per cent) slipped one spot.
The Bahamas (15 per cent) comes in the third place with Algarve and Cape Town (both 12.3 per cent) completing the top five.
Among other Indian cities, Delhi ranked 37th and showcased a rise of 4.2 per cent year-on-year in 2023 as compared to the 77th rank in 2022.
Bengaluru stands at the 59th rank compared to 63rd in 2022 recording a 2.2 per cent year-on-year increase in 2023.
"The outlook for 2024 remains bright as Mumbai with a 5.5 per cent prime price growth forecast, ranks second among the 25 cities globally. As we navigate the complexities of the global market, India's emergence as a prime destination for luxury real estate investment is undeniable," Baijal said.
Of the 100 luxury residential markets tracked, 80 recorded positive to neutral annual price growth.
Asia-Pacific (3.8 per cent) pipped the Americas (3.6 per cent) to the title of the strongest-performing world region, with Europe, the Middle East, and Africa trailing (2.6 per cent).