India is witnessing a transformative era of wealth creation. From bustling metros to emerging tier-II cities, the nation’s affluent population is expanding at a pace that is capturing global attention. A dynamic mix of young entrepreneurs, tech pioneers, and seasoned industrialists drives this change.
In 2024, the rise of high-net-worth individuals (HNIs, or people with investable assets of at least $1 million) and ultra-high-net-worth individuals (UHNIs, or those with assets worth above $30 million) paints a fascinating picture of opportunity, influence, and ambition.
Wealth growth and global standing
India’s wealthy denizens are growing in number and global significance.
Global ranking: India ranks sixth globally in UHNI population and third in Asia, trailing only China and Japan.
Population surge: The country’s UHNI count reached 13,600 in 2024, marking a 6% annual growth. This population is projected to soar by 50% by 2028, far outpacing the global growth average of 30%.
HNIs on the rise: India is home to over 850,000 HNIs, and this is projected to double to 1.65 million by 2027. Interestingly, 20% of these millionaires are under 40, signalling the growing influence of young wealth creators.
Image for representation purpose only. | Photo Credit: Getty Images/iStockphoto
Where the wealth comes from
The engines of wealth creation in India are diverse, spanning traditional industries and emerging sectors:
Tech and start-ups: Nearly 30% of new HNIs owe their fortunes to technology, fintech, and start-ups.
Manufacturing: The ‘Make-in-India’ push has fuelled industrial wealth, contributing 21% to the UHNI economy.
Real estate: Contributing 15%, luxury and commercial real estate have been key drivers, with urbanisation and premium developments leading the charge.
Equity: The Indian stock markets caused wealth from equities to grow by 18% year-on-year, further enriching India’s affluent.
Second Homes
Real estate continues to be a cornerstone of wealth allocation for Indian HNIs and UHNIs:
Luxury homes dominate: The share of luxury homes in total sales surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in Mumbai, Delhi, and Bengaluru are top picks, with Goa, Alibaug, and Jaipur emerging as favoured second-home destinations.
International investments: Approximately 14% of UHNIs own properties abroad, with Dubai, London, and Singapore as the primary hotspots. The average international property investment exceeded ₹12 crore ($1.44 million) in 2024.
Green buildings: With a growing focus on sustainability, ESG-compliant real estate has captured the interest of affluent buyers.
Spending patterns
India’s affluent are shaping trends in luxury consumption:
Luxury cars: More than 37% of Indian HNIs purchased a high-end vehicle in 2024, driving record sales for brands like Lamborghini, Porsche, and Rolls Royce.
Travel and experiences: UHNIs spend an average of ₹6 crore ($720,000) annually on bespoke vacations, luxury cruises, and curated experiences.
Jewellery and art: India is the fifth largest market for luxury watches and bespoke jewellery, with a surge in demand for pieces from Cartier, Patek Philippe, and Indian heritage brands.
Investment preferences
The investment landscape for India’s wealthy reflects a strategic shift:
Portfolio composition:
32% of wealth is allocated to real estate.
20% flows into private equity and start-ups, focusing on AI, blockchain, and cleantech.
8% of UHNIs have invested in cryptocurrencies, despite regulatory uncertainty.
Also, nearly 25% of Indian UHNIs are diversifying abroad, prioritising assets in North America and Europe. Over 40% of UHNIs have established family offices to manage wealth, succession planning, and philanthropy.
Image for representation purpose only. | Photo Credit: Getty Images/iStockphoto
Emerging trends
Millennial wealth creators: Over 15% of India’s HNIs are under 30, driven by start-up unicorns, IPOs, and tech-driven ventures. This number is expected to rise to 25% by 2030, as younger entrepreneurs redefine wealth creation.
Alternate citizenship and global mobility: About 10% of UHNIs secured alternate citizenships in 2024, favouring Portugal, Malta, and the UAE for their global mobility and tax benefits.
Health and wellness investments: Wellness-focused real estate, customised healthcare, and anti-ageing solutions have emerged as significant spending categories. High-net-worth families are also increasingly investing in preventive healthcare and luxury wellness retreats.
India’s global influence
India’s wealthy are now prominent players on the global stage:
Comparison with China: While India’s UHNI population grew by 6% in 2024, China’s grew by just 2%, signalling India’s rising economic prominence.
Philanthropy on the rise: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, prioritizing education, healthcare, and sustainability.
Reshaping the luxury market: As India’s luxury goods market grew by 12% in 2024, global brands are tailoring their offerings for Indian tastes, from bespoke couture to experiential services.
The writer is Regional Director and Head – Research, ANAROCK Group.
Published - December 27, 2024 05:05 pm IST
