Wednesday, 11 March 2015

Country’s ultra rich invest 50% of wealth in realty

Nearly half of the Indian ultra high net worth individuals ( UHNWI ) investment portfolios are allocated in property - the highest across the globe. This is followed by the Australians at 42%, said the Knight Frank Wealth Report 2015.

Samantak Das, chief economist and director, research, Knight Frank India, said, "Indian UHNWIs have given a positive outlook towards wealth creation and their decisions relating to the purchase of real estate property. Although not purely for investment purpose, a quarter of Indian UHNWIs are contemplating purchase of another home in 2015. From an investment perspective, as many as 87% of Indian UHNWIs wish to increase allocations towards prime residential property, which bodes well for the real estate sector."

Nicholas Holt, head of research for Asia Pacific, added, "The rise of Asia and its subsequent impact on prime property within the region and beyond has been one of the key narratives. This growth in wealth is impacting prime residential markets across Asia and Australasia, with the region's key cities and second home destinations seeing a strong price growth over the past five years. This is despite interventions by policy makers in a number of markets, designed to slow price growth and curb foreign ownership."

Watches, art and jewellery are the other top draws for wealthy Indians, said the report. Globally, the Knight Frank Luxury Investment Index found classic cars were again the top annual performer in the index; it tracks price growth of ten luxury investment sectors.

Coins were the only asset class to record a double-digit growth in 2014, although Chinese ceramics and wine performed more strongly than in recent years, rising 9% and 7%, respectively. The report said use of private jets is growing steadily around the world with demand rising most quickly in Asia - 38% respondents said their clients increasingly use them for business and leisure.

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