Thirty two per cent of India’s ultra-high-net-worth individuals (UHNWIs), those with a net worth of $30 million and above) wealth is allocated towards the residential real estate asset class, according to the 2024 ‘Wealth Report’ released by Knight Frank India, a real estate consultancy firm.
Nearly 14 per cent of their residential portfolio is allocated outside India. About 12% of India’s UHNWIs plan to buy a new home in 2024. A similar percentage of wealthy individuals in India purchased a new home in 2023. Globally, 22% of the ultra-wealthy are expected to purchase a home in 2024. The report further highlighted that on average an Indian UHNWI owns 2.57 homes while a sizable 28 per cent have rented out their second homes during 2023.
% UHNWIs buying houses
In the recently conducted attitude survey, gauging the perspectives of UHNWIs in India, 23 per cent prefer investing in the most sustainable assets when it comes to commercial properties within the realm of ESG strategies. This sentiment was mirrored on a global scale, where 29 per cent of UHNWIs expressed a similar inclination towards investing in the most sustainable and prime assets, attributing a lower risk profile to this strategy compared to others.
Among the noteworthy ESG strategies mentioned by affluent individuals in India, investment in renewable energy projects and exploring carbon sequestration opportunities through land acquisition were also identified as key priorities.
How much space can $1 million buy you in Mumbai and Delhi?
Area (in square meters) purchasable for US$1 million over the last 5 years for Mumbai, Delhi and Bengaluru:
All the three Indian cities (Mumbai, Bengaluru, and Delhi) have recorded a reduction in space purchase for US$ 1 million
Mumbai is now ranked as the eighth most expensive luxury real estate market in the world in terms of price growth, while Delhi is at the 37th spot and Bengaluru at 59th
The value of Prime International Residential Index (PIRI 100) has increased by 3.1% in 2023 showcasing solid overall gains. Of the 100 luxury residential markets tracked, 80 recorded positive to neutral annual price growth. Manila (26%) leads the rankings while Dubai (16%), last year’s frontrunner slipped one spot. The Bahamas (15%) comes in third place with Algarve and Cape Town (both 12.3%) completing the top five.
Asia-Pacific (3.8%) pipped the Americas (3.6%) to the title of the strongest-performing world region, with Europe, the Middle East and Africa trailing (2.6%). Sun locations continue to outperform city and ski markets, up 4.7% on average. Ski resorts are close behind (3.3%) and prime prices in the city market tracked have risen 2.7% on average.
The PIRI 100: Luxury residential markets’ performance, annual price change (2022 – 2023)
First Published: Feb 29 2024 | 12:49 PM IST