88% of ultra-high-net-worth Indians saw their wealth grow in 2022, says Knight Frank

Even although 2022 was marred by an prolonged period of instability and insecurity, 88 % or almost 9 out of 10 Indian ultra-high-net-worth people (UHNWIs) saw their wealth grow throughout that yr, in line with Knight Frank’s newest report – The Wealth Report: Outlook 2023.

A complete wealth shift of over 10 % was seen by nearly 35 % of Indian UHNWIs. Bonds, actual property, and equities collectively accounted for 84 % of the investable wealth of Indian UHNWIs.

At 34 %, equities made up the most important portion of investable wealth in 2022. Commercial properties obtained a large chunk of the 25 % allocation. 16 % of UHNWIs’ investable wealth was allotted to bonds as a solution to discover stability in an unsure setting.

The enlargement of business property as an funding class with vital allocation, in line with the analysis, was a sign of elevated investor confidence in India’s development story.

As per the report, international and Asia-Pacific (APAC) area respondents, largely represented extra mature actual property markets, with exposures of 33 % and 35 % respectively in business actual property by direct homeowners, funds, and actual property funding belief (REITs).

The Indian respondents predict that in 2023, the wealth of the ultra-wealthy would proceed to rise. While 53 % anticipate wealth to extend by no less than 10 % over the earlier yr, 47 % anticipate wealth to rise by greater than 10 %.

69 % of respondents worldwide imagine that wealth will improve, whereas 14 % imagine that wealth will lower.

“With 69% of UHNWIs expecting to see wealth growth in 2023 – we are anticipating a substantial shift in portfolio strategy – with a search for value opportunities in the real estate sector playing a much bigger role than in recent years. Downward pressure on property values, due to higher interest rates, has created a window for private capital – especially as we enter this new market phase with historic lows in terms of the stock of best-in-class property in residential and commercial markets,” stated Liam Bailey, Global Head of Research at Knight Frank.

In addition, 4 % of Indian UHNWIs are anticipated to hunt passion-driven property quite than monetary advantages, in line with the Attitudes Survey.

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Note: Most respondents have showcased curiosity in multiple ardour led Investment Avenue Source: Knight Frank Research

In 2023, 53 % of UHNWIs are anticipated to spend on artwork, watches, and high-end purses, which proceed to be the most well-liked investments of ardour. The different most sought-after passion-driven investments for 2023 are classic cars, wonderful wine, and furnishings.

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First Published: 17 Jan 2023, 12:58 PM IST

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