Mumbai Home To Most Number Of Billionaires In India: Knight Frank

India would rank third in terms of the absolute increase in ultra high net worth individuals' (UHNWI) population over the next 10 years, says international property consultancy, Knight Frank.

The property consultancy firm in its Wealth Report 2016 said India would account for 5 per cent of the total UHNWI population and 6 per cent of the billionaire population across the world by 2025.

"Currently, with 1,094 UHNWIs (Ultra High Net Worth Individuals), Mumbai leads in India followed by Delhi with 545. The next decade will see Mumbai increase to 2243 and Delhi to 1128 UHNWIs," the Knight Frank Wealth Report 2016 said.

After Mumbai, Delhi is residence to the largest number of UHNWIs with 545 individuals. The report further predicts that the coming decade will see Mumbai numbers swell to 2,243 and Delhi to 1,128, more than double current figures.

In the past 10 years, the billionaire count in India jumped by 333 per cent to 78 people, against a global rate of 68 per cent to 1,919 people.

"Among Indian cities, Mumbai leads the pack followed by New Delhi. Going forward, Mumbai will continue to maintain its number one position but the rate of growth in UHNWI population will be marginally higher in New Delhi than in Mumbai," said Samantak Das, chief economist at Knight Frank.

"Even though the rate of growth in the number of Indian UHNWIs (wealthy Indians) over the next ten years in India will slow down, it will still be much higher than the global average. Globally, India’s share of HNWI population, which was one percent in 2005, will continue to grow and is expected to increase to five per cent in 2025," he added.

The average number of residential properties owned by wealthy Indians stands at 4, the highest in the world, against a global average of 3.7.

Indian UHNWIs are also expected to double their count over the next 10 years, while global number will rise 41 per cent.

"While the slowdown in China continues, the growth trajectory of Asia's other giant, India, continues to be a positive story for the region. The strength and diversity of the Indian economy will continue to provide entrepreneurial and wealth growth opportunities, with the country set to see a doubling of its UHNWI population over the next 10 years," said Nicholas Holt, Head of Research for Asia Pacific, Knight Frank.

"This growth in wealth, not only at the UHNWI level, but also across other wealth brackets will be a key driver in the demand for prime residential property in the key Indian cities going forward."

During the last 10 years, around 31 per cent of Indian UHNWIs have increased their allocation to residential real estate, while 47 per cent have allocated more investment to commercial property market. Around 16 per cent of Indian UNHNIs are keen to invest in residential properties in the next one year.

On the assets front, the Indian wealthy are more likely to invest in property than their global counterparts. The average number of residential properties owned by wealthy Indians stands at 4, highest in the world while the global average is 3.7, the report claims. In the last 10 years 31 per cent Indians UHNWIs increased their asset allocations to residential real estate (primary or secondary homes), however, this number is likely to drop to 22 per cent by 2025. Homes are likely to be replaced by offices for commercial investments.

Collectible investments preferred by Indians include fine arts and antiques which have replaced watches while jewelry continues to be the most preferred collectible investments followed by cars and bikes.