In a recently published report from the Knight Frank Real Estate form, Mumbai has been ranked 21st, ahead of both Toronto and Washington DC in the City Wealth Index. The report, titled Knight Frank Wealth Report was released earlier this month, and includes Delhi as the other Indian city among its ranks (at 35, ahead of Bangkok, Seattle, and Jakarta).
The report tracked the “super-rich population” in as many as 125 cities across 89 countries. The “ultra-high-net-worth individuals,(UHNWIs)” in India rose by 290% in the past ten years, the report said! These individuals are those whose net assets are worth $30 million (around Rs 200 crore) or more. It should also be mentioned that the results in the report are based on responses from almost 900 of the world’s leading private bankers and wealth advisers.
Mumbai and Delhi are home to 1340 and 680 such UHNWIs respectively, with Kolkata and Hyderabad having approximately 250 individuals each. And, although Mumbai ranks a modest 21st right now, the recent culture in the financial capital of the fastest growing economy in the world has been ranked 11th in the ‘future wealth’ category. This is especially notable given the plethora of developed world cities that it beat in its pursuit of that rank. Substantial growth is also forecast in countries like Sri Lanka and India. As Andrew Kenningham, Chief Global Economist at Capital Economics, highlights overleaf, regulatory reform in India will help bolster its already positive economic performance.
Futhermore, Mr. Kenningham added, “India hit the headlines in late 2016 over its decision to withdraw high denomination notes in a bid to crack down on the ‘black economy.’ The move created a short-term cash crunch; but it also sent a powerful message about the government’s determincation to modernise the economy and reduce corruption….India has a resilient, diversified economy; it is not reliant on commodities and its domestic and foreign debt burden in manageable- there is a broad base for economic growth.”
While these metrics are an inspiring notion for us to behold, it still does not wedge the income inequality gap that exists even in the largest Metropolitan in the country. Currently more than 25 million people live in the city, and although the super rich keep getting wealthier, the real data exists in the divide between the two economic groups, fragmented by their realities.
The report, being primarily a real estate report, states that most UHNWIs in India prefer investing in properties outside the country in places like Singapore, the UK, UAE, USA and Hong Kong.
It also states that Mumbai is the 15th most expensive place in the world to buy ‘prime residential real estate.’ This isn’t exactly as notable a fact as the ones above, in fact it is alarming, because we have been ranked higher than the likes of Istanbul, Melbourne and Dubai!
Source: xL mag, business insider
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