THE WEALTH REPORT 2015

1

THE WEALTH REPORT 2015

INDIA DR. SAMANTAK DAS

Chief Economist & Director - Research

Wealthy Indians - today and tomorrow

The Wealth Report

Growth in billionaire count much faster in India

The Wealth Report

70% 100% 41%

India

% forecast growth in commercial

investment volumes during 2015

Asia Global

Out-performance in growth of UHNWI in India is even larger

The Wealth Report

48% 104% 34%

India

% forecast growth in commercial

investment volumes during 2015

Asia Global

During 2004-14, growth rate for UHNWIs and billionaires were 166% and 162% respectively

The Wealth Report

Note

• UHNWI: Net assets of USD 30 mn.

• Billionaire: Net assets of USD 1 bn.

65 1,576

2013

68 1,652

2014

136

3,371

2024

India’s UHNWI ranking to improve from 20th in 2014 to 19th in 2024

The billionaire ranking would improve from 7th to 4th Insert legend

UHNWI

Billionaire

UHNWI

Billionaire

UHNWI

Billionaire

The Wealth Report

India: Top 6 cities contribute 58% of UHNWIs which will increase to 68% by 2024

CHENNAI BENGALURU

MUMBAI

AHMEDABAD

HYDERABAD

DELHI

20 46

130%

157 373

138%

39 92

136%

49 111

127%

619 1,490

141%

75 164

119%

693 1,095

58%

OTHERS

UHNWI distribution – Ho Chi Minh will grow fastest

The Wealth Report

148% JAKARTA

171% Ho Chi Minh

157% Ordos

141% MUMBAI

The Wealth Report

High concentration of wealth in India: UHNWIs per 100,000

2.4 0.1

India Global

Lowest concentration in Monaco - With 574 UHNWIs per 100,000 ranks 1st among 97 countries

The Wealth Report

20th 68th

84th

13 0.6

0.1

What do wealthy Indians think?

The Wealth Report

The Wealth Report

82% 74%

Asia Global

In 2014, net worth of 87% of

Indian UHNWIs increased

80% 82%

Asia Global

In 2015, 89% of Indian UHNWIs

expect their wealth will increase

Top 3 concerns of Indian UNHWIs

The Wealth Report

Family / business succession issues

Potential increase in wealth taxes

Cyber crime & online privacy

The Wealth Report

28% 33% 23%

India Asia Global

% of net worth by main residence and any

2nd home that is not purely an investment

3.3 3.2 2.9

India Asia Global

Average ownership of homes

22% 24% 26%

India Asia Global

Contemplating a purchase

of another home in 2015

The Wealth Report

12% 7% 12%

India Asia Global

% of UHNWIs considering permanently

changing their domicile or country of

residence

Top 3 reasons

Quality of life/health

Business

Tax

The Wealth Report

38% 47% 32%

India Asia Global

% allocation of investment into real

estate asset class

29% 26%

2014 2015

% UHNWIs who increased / wish

to increase allocation to property

% UHNWIs who wish to increase allocation towards

87%

Residential

65%

Office

60%

Agricultural

50%

Warehousing / Industrial

26%

Retail / Shops

The Wealth Report

Most likely geography to invest in property Property ownership structuring

8% 92% INDIA

OWN COUNTRY ABROAD

GLOBAL

ASIA 37% 63%

42% 58%

3% 97%

DIRECT OWNERSHIP VIA A FUND

3% 91%

12% 79%

JOINT VENTURE

6%

9%

0% INDIA

GLOBAL

ASIA

The Wealth Report

Change in investment in other asset classes – Allocation to equity investments and own business to increase remarkably

EQUITIES

OWN BUSINESS

CASH

FIXED INCOME BONDS

GOLD / PRECIOUS METALS

95%

70%

-39%

0%

-55%

45%

39%

-9%

-17%

-17%

52%

46%

6%

12%

-48%

IND

IA

GL

OB

AL

AS

IA

The Wealth Report

Investments of passion: Watches, Art, Jewellery top; Personal

pleasure and status are top motives

38%

CLASSIC CARS

66%

ART

56%

WINE

22%

FURNITURE STAMPS

19%

COINS

14%

68%

WATCHES

65%

JEWELLERY

CHINESE CERAMICS

11%

Prime Residential Property Prices

The Wealth Report

Prime Residential Property – Monaco costliest; Dubai cheaper than Mumbai

The Wealth Report

`174,362 `339,723

`283,215

`151,419

`293,944 HONG KONG

SINGAPORE

MONACO

LONDON

NEW YORK

`121,608 SHANGHAI

PARIS `116,851

`99,210 MIAMI

`97,087 BEIJING

DELHI

BENGALURU MUMBAI

DUBAI

`33,400

`61,300 `18,600

`40,455

Price in ` per sq. ft.

Prime Residential Price Change in 2014

The Wealth Report

Limited price growth in Mumbai due to high unsold inventory

Globally, Bengaluru is among the limited markets that had double digit growth

18.8%

10.1% 9.8%

5.1% 2.9%

1.8% 1.1% 0.3% 0.0%

-0.5% -2.0%

-3.5%

-12.4% -15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

New

York

Ben

galu

ru

Mia

mi

Lon

don

Mu

mb

ai

Delh

i

Hong

Kon

g

Duba

i

Sha

ngh

ai

Beiji

ng

Mo

naco

Pari

s

Sin

ga

po

re

Cities preferred by Global UHNWIs

The Wealth Report

Top 10 Global Cities – No Indian city among top 10

The Wealth Report

2 NEW YORK 5

SHANGHAI

6 MIAMI

8 DUBAI

9 BEIJING

4 SINGAPORE

1 LONDON

10 ZURICH

7 PARIS

3 HONG KONG

2015

Top 10 Global Cities – Mumbai slips out

The Wealth Report

1 NEW YORK 5

SHANGHAI

7 MIAMI

8 DUBAI

6 BEIJING

4 SINGAPORE

2 LONDON 10

ZURICH

9 PARIS

3 HONG KONG

2025

Key Takeaways

By 2024, only USA, China and Russia will have more billionaires than India

Top 6 cities in India contribute 58% of UHNWIs in the country. This dominance shall further accelerate to 68% by 2024

The country has high concentration of wealth in the hands of few – ranks 84th out of 97 countries

24% Indian UHNWIs are contemplating a purchase of another home in 2015

The Wealth Report

THE WEALTH REPORT 2015

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