The Rise of Indian HNIs and UHNIs in 2024

The Rise of Indian HNIs and UHNIs in 2024

 

 

Dr. Prashant Thakur, Regional Director & Head – Research, ANAROCK Group

 

India is witnessing a transformative era of wealth creation. From bustling metros to emerging Tier-II cities, the nation's affluent population is expanding at a pace that is capturing global attention. A dynamic mix of young entrepreneurs, tech pioneers, and seasoned industrialists drives this change.

 

The rise of high-net-worth individuals (HNIs, or people with investable assets of at least $1 million) and ultra-high-net-worth individuals (UHNIs, or those with assets worth above $30 million) in 2024 paints a fascinating picture of opportunity, influence, and ambition.

 

Wealth Growth and Global Standing

 

India's wealthy denizens are not just growing in number but also global significance.

 

• Global ranking: India ranks 6th globally in UHNI population and 3rd in Asia, trailing only China and Japan.
• Population surge: The country's UHNI count reached 13,600 in 2024, marking a 6% annual growth. This population is projected to soar by 50% by 2028, far outpacing the global growth average of 30%.
• HNIs on the rise: India is home to over 850,000 HNIs, and this is projected to double to 1.65 million by 2027. Interestingly, 20% of these millionaires are under 40, signalling the growing influence of young wealth creators.

Where the Wealth Comes From

 

The engines of wealth creation in India are diverse, spanning traditional industries and emerging sectors:

 

• Tech and start-ups: Nearly 30% of new HNIs owe their fortunes to technology, fintech, and start-ups.
• Manufacturing: The 'Make-in-India' push has fuelled industrial wealth, contributing 21% to the UHNI economy.
• Real estate: Contributing 15%, luxury and commercial real estate have been key drivers, with urbanization and premium developments leading the charge.
• Equity: The Indian stock markets caused wealth from equities to grow by 18% year-on-year, further enriching India's affluent.

Real Estate and Second Homes

 

Real estate continues to be a cornerstone of wealth allocation for Indian HNIs and UHNIs:

 

• Luxury homes dominate: The share of luxury homes in total sales surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in Mumbai, Delhi, and Bengaluru are top picks, with Goa, Alibaug, and Jaipur emerging as favoured second-home destinations.
• International investments: Approximately 14% of UHNIs own properties abroad, with Dubai, London, and Singapore as the primary hotspots. The average international property investment exceeded INR 12 crore ($1.44 million) in 2024.
• Green buildings: With a growing focus on sustainability, ESG-compliant real estate has captured the interest of affluent buyers.

 

Spending Patterns: Luxury and Beyond

 

India's affluent are shaping trends in luxury consumption:

 

• Luxury cars: More than 37% of Indian HNIs purchased a high-end vehicle in 2024, driving record sales for brands like Lamborghini, Porsche, and Rolls Royce.
• Travel and experiences: UHNIs spend an average of INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and curated experiences.
• Jewellery and art: India is the 5th largest market for luxury watches and bespoke jewellery, with a surge in demand for pieces from Cartier, Patek Philippe, and Indian heritage brands.

Investment Preferences: Diversifying for the Future

 

The investment landscape for India's wealthy reflects a strategic shift:

 

Portfolio Composition:

 

• 32% of wealth is allocated to real estate.
• 20% flows into private equity and start-ups, focusing on AI, blockchain, and cleantech.
• 8% of UHNIs have invested in cryptocurrencies, despite regulatory uncertainty.

 

Also, nearly 25% of Indian UHNIs are diversifying abroad, prioritizing assets in North America and Europe. Over 40% of UHNIs have established family offices to manage wealth, succession planning, and philanthropy.

 

Emerging Trends: What's Shaping the Future?

 

Millennial Wealth Creators - Over 15% of India's HNIs are under 30, driven by start-up unicorns, IPOs, and tech-driven ventures. This number is expected to rise to 25% by 2030, as younger entrepreneurs redefine wealth creation.

 

Alternate Citizenship and Global Mobility - About 10% of UHNIs secured alternate citizenships in 2024, favouring Portugal, Malta, and the UAE for their global mobility and tax benefits.

 

Health and Wellness Investments - Wellness-focused real estate, customized healthcare, and anti-ageing solutions have emerged as significant spending categories. High-net-worth families are also increasingly investing in preventive healthcare and luxury wellness retreats.

 

India's Global Influence and Future Outlook

 

India's wealthy are now prominent players on the global stage:

 

• Comparison with China: While India's UHNI population grew by 6% in 2024, China's grew by just 2%, signalling India's rising economic prominence.
• Philanthropy on the rise: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, prioritizing education, healthcare, and sustainability.
• Reshaping the luxury market: As India's luxury goods market grew by 12% in 2024, global brands are tailoring their offerings for Indian tastes, from bespoke couture to experiential services.

The Rich Subtext

 

India's high-net-worth and ultra-high-net-worth individuals are not just symbols of wealth but also catalysts for economic transformation. From driving the luxury market to fuelling philanthropic ventures and innovative investments, they embody the aspirations of a nation on the rise.

 

With younger wealth creators, a booming tech sector, and increasing global influence, India's journey toward wealth dominance is just beginning.

 

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