INDIA INSIGHTS Dr. Samantak Das

Chief Economist & National Director – Research

• India has 2% of the world’s millionaires (13.6 mn), and

5% of the world’s billionaires (2,024)

• UHNWIs increased by 12% between 2015-16 and is

forecasted to grow by 150% during 2016-26

• The number of UHNWIs in India increased by 290% during the last decade

• India ranks 6th in UHNWI growth rate for 2016, to move up

to 3rd rank for the next decade

INDIA STATISTICS

Millionaires ($1m+) 264,300

Multi-millionaires ($10m+) 16,580

UHNWI ($30M+) 6,740

$100M+ 851

$1bn+ 95

CITY-WISE WEALTHY INDIANS 2016

Mumbai leads in number of UHNWIs, Pune ahead in growth

UHNWI ($30M+) Change 2015-2016 Change 2016-2026

Pune 140 18% 170%

Hyderabad 260 15% 160%

Bangalore 220 15% 160%

Mumbai 1,340 12% 150%

Kolkata 280 10% 140%

Chennai 190 10% 140%

Delhi 680 10% 140%

Gurgaon 110 10% 140%

ATTITUDE SURVEY OF WEALTHY INDIANS

TOP 5 FACTORS MOST IMPORTANT FOR -

MANAGEMENT OF WEALTH AND INVESTMENT DECISIONS

INDIA Capital growth

Wealth preservation

Passing wealth to the

next generations

Portfolio liquidity

Portfolio diversification

GLOBAL &

ASIA

Wealth preservation

Capital growth

Passing wealth to the next

generations

Income return

Portfolio diversification /

liquidity

TOP 5 FACTORS MOST IMPORTANT FOR MILLENNIALS FOR -

MANAGEMENT OF WEALTH AND INVESTMENT DECISIONS

INDIA Capital growth

Portfolio diversification

Looking for innovative

new ways to invest

Portfolio liquidity

Ability to move wealth

quickly around the

world

GLOBAL &

ASIA

Capital growth

Looking for innovative new

ways to invest

Portfolio diversification

Income return

Wealth preservation

POTENTIAL FALL IN ASSET VALUES, THE TOP THREAT

Succession / inheritance issues no more a top threat

India Asia Global

Potential fall in asset values 34% 30% 31%

Political uncertainty 24% 25% 35%

Rising taxes 21% 28% 25%

Tighter controls on movement

of capital 16% 27% 22%

Rising interest rates 16% 13% 12%

Last year, the top concerns for Indians were

1. Succession / inheritance issues 2. Global economy 3. Tax for the wealthy

4. Legislation directly affecting the wealthy 5. Stock market volatility

OVERSEAS EDUCATION OF CHILDREN, THE TOP CONTEMPORARY ASPECT

Succession / inheritance issues also important

India Asia Global

Choosing to send children overseas

for education 47% 38% 28%

Having a succession plan in place 21% 9% 13%

Worried about passing their wealth

to the next generation 18% 16% 22%

Taking a more personal role in

philanthropic endeavours 11% 6% 10%

BIGGEST CONCERNS REGARDING PASSING WEALTH TO THE

NEXT GENERATION

India Asia Global

Inheritance taxes 50% 58% 58%

Dividing wealth equitably

between their children 50% 56% 52%

Next generation will squander or

mismanage their inheritance 40% 63% 62%

Feel the next generation

should earn its own money 30% 32% 46%

Philanthropy issues 10% 9% 7%

PROPORTION OF WEALTH ALLOCATED

Personal business, the highest priority followed by real estate

India Asia Global

Personal business 29% 24% 23%

Real estate investments

(excluding primary residence and second homes) 23% 29% 24%

Investments

(equities, bond, cash, precious metals, etc.) 22% 24% 25%

Primary residences and second homes 14% 14% 16%

Collectables

(art, cars, wine, etc.) 8% 5% 6%

Other 4% 5% 6%

IMPORTANT FACTORS DETERMINING THE DECISION TO BUY

RESIDENTIAL PROPERTY TO LIVE

India Asia Global

Personal security 9.0 8.1 8.2

Opportunity for capital appreciation 8.5 7.8 7.4

Healthcare 8.5 7.4 7.1

Lifestyle 8.4 7.6 8.2

Education for children 8.1 8.0 7.5

Business reasons 8.0 6.9 6.8

Safe haven for capital 7.8 7.7 7.7

Access to transport links 7.7 7.1 6.9

Score out of 10

AVERAGE NUMBER OF RESIDENTIAL

PROPERTIES OWNED BY WEALTHY

INDIANS

3

Global 3

Asia 3

Last year, the average residential

property ownership across the globe

was 4

% OF WEALTHY LIKELY TO BUY ANOTHER

HOME OVER THE NEXT TWO YEARS

40

Global 30

Asia 32

Last year, just 16% Indians contemplated to buy

another residential property indicating the

sentiment revival in the current year

within their

country of residence

outside their

country of residence

25

Global 32

Asia 29

COUNTRIES WHERE THE WEALTHY ARE MOST LIKELY TO OWN A HOME

ASIA INDIA

Singapore

United Kingdom

UAE

USA

Hong Kong

GLOBAL

United Kingdom

USA

France

Spain

Switzerland

Singapore

United Kingdom

Hong Kong

USA

China

PROPERTY SECTORS ATTRACTING INTEREST

From 13% last year to 34% now, logistics has climbed up the list

India Asia Global

Offices 55% 48% 44%

Residential 48% 58% 60%

Logistics 34% 21% 17%

Healthcare 24% 23% 24%

Retail 17% 23% 29%

Leisure 17% 14% 16%

Industrial 10% 16% 18%

Renewable energy 7% 9% 18%

Agricultural 0% 0% 0%

COUNTRIES WHERE THE WEALTHY ARE MOST LIKELY TO OWN

COMMERCIAL PROPERTY

ASIA INDIA

Singapore

United Kingdom

USA

Canada

UAE

GLOBAL

United Kingdom

USA

Spain

Germany

Australia

Singapore

United Kingdom

China

USA

Hong Kong

LUXURY INVESTMENTS

PROPORTION OF WEALTHY ALREADY HAVING A COLLECTION OF

LUXURY INVESTMENTS

ASIA INDIA GLOBAL

27% 38% 37%

LUXURY INVESTMENTS BECOMING MORE POPULAR

ASIA INDIA GLOBAL

Yes

44% Yes

47% Yes

44%

FACTORS WHILE BUILDING LUXURY COLLECTIONS

For India, the top three factors remain the same as last year India Asia Global

Status 8 7 7

Potential for an increase

in capital values 8 7 7

Personal enjoyment 8 8 8

Diversifying their investment portfolios 7 6 6

Becoming part of a community of like-

minded collectors/owners 7 6 6

Intellectual curiosity / developing own

knowledge / becoming an expert 7 6 6

Safe haven for capital 7 6 6

Score out of 10

LIKELY TO OWN THE FOLLOWING

In Asia, including India, the preference for these items as luxury investment and spending is

substantially lower than the global average

India Asia Global

Motor yacht 3.9 3.8 5.4

Sailing yacht 3.5 3.7 4.7

Private jet 3.1 3.4 4.4

Race horse 3.4 3.3 4.0

Sport team 2.9 2.8 3.3

Score out of 10

KEY TAKEAWAYS

In the last 10 years, we saw additions of around 500 new UHNIs annually;

over the next decade, it will be approximately 1,000 every year

Out of 40 global cities, Mumbai ranks 11 in the ‘future wealth’ category ahead

of Chicago, Sydney, Paris, Seoul, Dubai

Mumbai at 21 in the city wealth index ahead of Toronto, Washington DC,

Moscow; Delhi at 35 ahead of Bangkok, Seattle, Jakarta

Office is the top property sector for investment; Logistics sees a three-fold rise

in terms of interest of wealthy Indians

Substantial proportion of wealthy Indians is likely to invest in residential

property in the next 2 years – 40% within country and 25% overseas