India's ultra-rich to invest 22-25% of their wealth in residential properties for end-use: Knight Frank
The Knight Frank's Next Gen Survey found that 89% of wealthy Indians aged 18-35, with incomes exceeding ₹1 crore, prefer owning property over renting.
Indian high-net-worth individuals (HNWIs), those with assets exceeding $10 million, are expected to allocate 22-25% of their wealth to prime residential real estate, with 80-90% of their holdings concentrated within the country, said Vivek Rathi, National Director of Research at Knight Frank India, during the launch of the Knight Frank Wealth Report 2025, as he spoke to HT.com
The Wealth Report noted that the number of HNIs in India rose by 6% in 2024 to 85,698 from 80,686 in the preceding year and that the number of billionaires has moved up to 191. It noted that the number of HNWIs is expected to rise to 93,753 by 2028, reflecting India's expanding wealth landscape.
Rathi highlighted that a significant portion of these investments by HNIs is directed toward cities such as Mumbai, Delhi-NCR, Hyderabad, and Chennai, among others. He explained, "While most HNWIs invest in prime real estate for personal use, some also allocate funds for capital preservation. In certain cases, we observe investments aimed at generating rental income."Also Read: Number of Indian billionaires touches 191 in 2024, Indian HNWIs rise 6% to 85,698: Knight Frank
Capital preservation is an investment strategy that protects the original amount of money invested, rather than seeking high returns.
For overseas investments, “we see the majority of HNWIs investing in countries like the UAE or the UK,” Shishir Baijal, chairman and managing director of Knight Frank India, added.
89% of Indians aged 18-35 with incomes over ₹1 crore prefer owning property
Knight Frank's Next Gen Survey – India, which studied individuals aged 18 to 35 with an income exceeding ₹1 crore, revealed that 89% of wealthy Next Gen Indians prefer owning property over renting. Additionally, 65% plan to upgrade their current homes within the next year.
Next Gen (Next Generation) typically refers to younger generations emerging as future leaders, consumers, or workforce.
The survey also found that about 47% of Indian Nex Gens prefer to invest in luxury cars, and about 28% prefer real estate investments in high-end properties.
Real estate accounts for 21% of their priority investments, while 23% are inclined to invest in stocks.Also Read: Here's why high-net-worth individuals may be selling their properties in Mumbai’s real estate market
India’s billionaires move up to 191
The Knight Frank Wealth 2025 report released on March 5 said that India is now home to 191 billionaires, with 26 new entrants joining the ranks in the past year alone—significantly higher than just seven in 2019. The country’s billionaire population recorded a 12% annual growth in 2024, reflecting its expanding wealth landscape.
According to the report, India accounts for 3.7% of the world’s wealthy individuals, ranking fourth globally. The U.S. leads with 905,413 high-net-worth individuals (HNWIs), followed by China (471,634) and Japan (122,119).
Indian billionaires collectively hold an estimated $950 billion in wealth, positioning the country third globally, behind the U.S. ($5.7 trillion) and Mainland China ($1.34 trillion).
