Chennai has around 160 ultra-high-net-worth individuals (UHNWIs) and the ultra-wealthy population in the city is expected to increase by 65.6% to 264 by the year 2026, according to Knight Frank’s The Wealth Report 2022. From 97 in 2016 to 160 in 2021, Chennai has been the fourth fastest growing city in terms of UHNWIs.
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As per Knight Frank, a UHNWI is someone with a net worth of US$30 million or more, including their primary residence while high-net-worth individuals are someone with a net worth of US$1 million or more, including their primary residence.
According to the Attitude Survey that is part of the Wealth Report 2022, 29% of the wealth of Indian UHNWIs is allocated towards purchase of principal and second homes. Further, 22% of UHNWIs investable wealth was allocated towards direct purchase of commercial property (including rental property, offices etc), while 8% of the investable wealth was allocated towards indirect purchase of commercial property (includes REITs, funds). Additionally, the survey cited that 8% of the property portfolio is held overseas. The report further highlighted that on an average, an Indian UHNWI owns 2.3 homes and 32% of the Indian UHNWIs have rented out their second homes during 2021.
Art was the most preferred investment by Indian UHNWIs, followed by jewellery and classic cars. Luxury handbags and wines slipped from their earlier first positions to 5th and 7th respectively in 2021. According to Knight Frank’s luxury investment index (global), art provided a return of 13% in a twelve-month period and 75% over 10 years.