More than 10% of India’s ultra-high-net-worth individuals (UHNWIs) with a net worth of $30 million and above, plan on buying a new home in 2022. Indian UHNWI prefer investing in domestic market properties. They also like investing in international markets of the UK, UAE and US. Globally, 21% of the extremely wealthy are expected to purchase a home in 2022 according to Knight Frank’s The Wealth Report 2022 on March 1.
The report further highlighted that on an average an Indian UHNWI owns 2.3 homes and 32% of the Indian UHNWIs have rented out their second homes during 2021.
Why has real estate investment grown in India?
Investment in the real estate sector in India has grown during the pandemic as real estate is seen as a safe and tangible investment option in the midst of economic volatility. At attractive valuations, real estate continued to drive institutional demand. The governing rules surrounding REITs are also regularly updated to augment the scope of these investment instruments in India, according to Shishir Baijal, Chairman and Managing Director, Knight Frank India.
Our survey indicates that the investor interest will remain stable in 2022. “Interestingly investors showed preference towards assets such as land development, healthcare, retail and logistics etc. ESG will continue to gain prominence as key influence in property purchase decisions in 2022”, he said.
Global interest in real estate investment has increased
The Wealth Report shows a very clear rise in demand for residential property. 26% of the global UHNWIs are looking to buy a new home in the year 2021. This is a significant increase from the 21% that was revealed in the year 2020. The demand is also extremely strong for rural and coastal properties. Access to open space is a highly desired feature in properties. The pandemic is super-charging demand for locations that offer an abundance of wellness. Mountains, lakes, and coastal hot-spots have been very popular options. The demand is going to help fuel price rises of up to 7% for key markets this year according to Liam Bailey, Global Head of Research at Knight Frank.