Bengaluru has 238 ultra high net worth individuals: Report

Bengaluru: The global prime residential pricing has registered an increase of 1.9% year-on-year (YoY), according to Knight Frank's Prime International Residential Index (PIRI 100). Luxury housing markets performed better than expected in 2020, with 66 of the 100 markets featured in PIRI recording an annual price growth.

Globally, Bengaluru ranked 79 in terms of luxury residential prices which registered a decline of 2% YoY in 2020. Delhi (ranked 72) and Mumbai (ranked 77) registered a decline of 0.1% YoY and 1.5% YoY respectively in prime residential prices. Now, in Bengaluru one can purchase 351 square metres of prime residential real estate, compared to 336 square meters in 2019.

According to the report, there are currently 521,653 ultrahigh net worth individuals (UHNWIs) globally of which India comprises 6,884 such individuals. UHNWIs, those with US$30 million or more, in India is expected to grow by 63% to 11,198 by 2025. From the perspective of Indian cities being home to the wealthy, Mumbai, Delhi and Bengaluru have a high concentration of such UHNWIs with 920, 375 and 238 such individuals respectively. According to the respondents of The Wealth Report Attitudes Survey, part of upcoming The Wealth Report 2021, 91% of Indian UHNWIs expect to see an increase in their wealth in 2021.

Kate Everett-Allen, head of international residential research at Knight Frank, said: "Expectations of second homes are increasing. With greater flexibility around remote working, owners are lengthening their stays with many now viewing them as 'co-primary' homes. From fast broadband to cinema rooms, gyms and A-grade technology, a second home now has a long wish list to fulfil."

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, "2020 has been a year that saw COVID-19 influenced slowdown not only in the real estate industry but overall, in the economy. The policy decisions by the Maharashtra and Karnataka governments to reduce the stamp duty have acted as a counterbalance to the disruption caused by the pandemic. The luxury residential sales saw an exponential surge in Mumbai in Q4 2020 and the demand outlook for 2021 remains resilient. The current market price offers a premium value to make a luxury residential asset purchase in Indian cities for both domestic and global wealthy individuals."