In India, equities, real estate, and bonds account for as much as up to 84 percent of ultra-high net worth individuals’ investable wealth. According to Knight Frank’s Attitude survey, while investments in equities make up 34 percent of their portfolio, investments in commercial real estate, whether directly or via funds and REITS, account for 25 percent.
Investable Wealth Allocation:
In 2022, the highest percentage of investable wealth was represented by equity holdings, that is up to 34 percent. Commercial properties received a sizeable share of the allocation, amounting to around 25 percent (either directly through ownership or indirectly through funds). According to the survey, the increased investor confidence in India’s growth story can be seen in the rise of commercial assets as an investment class with high allocation.
Respondents from the global and APAC regions, who primarily represent more developed real estate markets, have exposures to the commercial real estate through direct owners, funds, and REITs of 33 percent and 35 percent, respectively. According to the report, 16 percent of the UHNWIs’ investable wealth was allocated to bonds as a means of stability in an unstable environment.
Indian UHNWIs own 5 homes; about 10% may buy a new home in 2023
According to Knight Frank’s Attitude survey, the average number of residential properties owned by super-rich Indians is nearly 5.1, compared to the global average of almost 4.2. The UHNWIs of India allocate about 37 percent of their total wealth to their primary and secondary residences, and 15 percent of that amount is spent on real estate outside of their home countries.
It is estimated that UHNWIs in India own on average five homes each, making them the most avid home buyers in the world. There is a constant allure to residential properties that can be seen in this very example.
