Art, jewelry, cars, stocks, real estate: where are the ultra-rich investing?

Art emerged as the top investment avenue for ultra-high net worth individuals (UHNWIs) in 2021, followed by jewelry and vintage cars, as individuals moved towards passionate investing, findings from the latest Knight Frank Wealth Report suggest. 2022. UHNWIs are people with a net worth of $30 million and above.

Among asset classes, the investment preference for luxury handbags and wines rose from first to fifth and seventh respectively in 2021. According to the Knight Frank Luxury Investment Index (global ), the art provided a return of 13% over a period of 12 months, and 75% over 10 years. CLICK HERE FOR A DETAILED CHART

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“11% of the investable wealth of Indian UHNWIs is allocated to passion-based investments, compared to a global average of 16%. About 29% of Indian UHNWIs spent more on passion-based investments in 2021. The joy of owning exceeded the investment returns,” the report said.

“Stock markets and digital adoption have been key factors in the growth of UHNWIs in India. The growth of young self-made UHNWIs has been amazing in India.

With healthy growth in UHNWI, India is expected to be one of the fastest growing countries among its global peers,” said Shishir Baijal, President and Managing Director of Knight Frank India. ALSO READ: Are you looking to invest in a luxury property? PIN is the key, experts say

According to the Knight Frank report, 29% of the wealth of Indian UHNWIs is allocated to the purchase of primary and secondary homes. In addition, 22% of UHNWI’s investable wealth was allocated to the direct purchase of commercial property (including rental properties, offices, etc.), while 8% of investable wealth in 2021 was allocated to the purchase of commercial property, including real estate investment trusts (REITs). According to the report, 8% of the real estate portfolio was held abroad.

Mumbai – The Maximum City

Meanwhile, the population of these ultra-rich jet-setters continued to grow around the world and in India. India was home to 13,637 of these ultra-rich (2.23%) in 2021 – up 11% year-on-year (YoY) – out of a global total of 610,569 in 2021. Of these Indians ultra-rich, almost 12% reside in Mumbai, according to the report.

“Mumbai’s UHNWI population is expected to grow by 29.6% to 2,069 by 2026. Over the last 5 years, the ultra-rich population of Mumbai has increased by 42.6% from 1,119 in 2016 to 1,596 in 2021,” reports Knight Frank. noted.

Globally, Monaco continued its reign as the world’s most expensive city in 2021, where $1 million could get you 14.6 square meters of space, followed by Hong Kong (21.3 square meters ) and London (30.6 square meters). Compared to Mumbai, one could buy 108.1 square meters (1,164.02 square feet) of prime residential real estate in 2021, a 2% increase from 106 square meters (1,140.9 square feet) in 2020.


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