India’s super-rich invest their wealth in equities, real estate, and bonds, a survey by Knight Frank’s Attitude has found. Equities accounted for 34% of investments by Ultra High Net Worth Individuals (UHNWI). Not far behind, at 25% UHNWI also favored commercial properties (either directly through ownership or indirectly through funds).
According to Knight Frank’s Attitude survey, on an average, Indian super-rich own 5.1 residential properties. The global is of 4.2 units. Clearly, the appetite for Indian UHNWIs to invest in real estate is high. This shows improved confidence in India’s growth story and also demonstrates the appeal of residential properties which are a hedge against inflation.
Around 37 percent of the total wealth allocation is towards primary and secondary homes by Indian UHNWIs of which 15 percent allocation towards residential property is held outside India, according to the survey.
The US, UK and Spain are the top three locations for purchasing homes. Australia and France round out the top five.
The report says, “Real estate was identified as a top opportunity, both for direct and indirect investment. One in five UHNWIs are planning to invest directly in 2023, with 13% looking for indirect opportunities. This is broadly in line with the 20% of last year’s survey, indicating the attraction of property as a haven during economic uncertainty.”
The report notes that higher interest rates will temper demand for residential property in 2023 but even then, “some 15% of UHNWIs are looking to purchase a residential property this year, down from 21% in the previous year’s survey. Appetite is highest amongst Middle Eastern UHNWIs,” it says.