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Mumbai ranks 21st in the ‘City Wealth Index’ ahead of Toronto

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Mumbai ranks 21st in the ‘City Wealth Index’

01 March 2017

Knight Frank, the independent global property consultancy, today launches the 11th edition of The Wealth Report 2017. The report tracks the growing super-rich population in 125 cities across 89 countries. The Wealth Reports yearly issue provides a unique perspective on the issues that are influencing UHNWI investment and lifestyle decisions. This year’s survey results are based on responses from almost 900 of the world’s leading private bankers and wealth advisors.

Key Takeaways – India

  • In the last 10 years, we saw additions of around 500 new UHNWIs annually in India; 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, and 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 are likely to invest in residential property in the next 2 years – 40% within country and 25% overseas
  • The millennial UHNWIs in India focus on capital growth compared to the older generation who also laid emphasis on wealth preservation
  • According to the survey, Income returns do not feature in the top five priorities for UHNWIs in India. However they do feel that potential fall in asset values and political uncertainty as a major threat to wealth creation in the next five years
  • Overseas educations for their children also appears to top the UHNWIs agenda
  •  40% Indians are anticipated to buy residential property outside their country of residence. For Asia and Global it was 32% and 30% respectively
  • The UHNWIs in India prefer countries like Singapore, UK, UAE, USA and Hong Kong for owning a home. However, the Global Wealthy gives more preference to European countries
  • 27% of Indian UHNWIs have already invested in collectibles such as art, wine or classic cars
  • Motor yacht is the most sought after luxury asset followed by sailing yacht, race horse, private jet and sports team. The preference for these items as luxury investment and spending is substantially lower than the global average
  • India ranks 6th in terms of growth rate of UHNWIs for 2016. With the current pace, the country is expected to move up to the 3rd spot over the next decade. The numbers of UHNWIs in India have increased by 290% during the last decade
  • India houses 2% of the world’s millionaires (13.6 mn) and 5% of world’s billionaires (2,024)
  • The country has witnessed a 12% increase of UHNWIs between 2015 and 2016 and is expected to grow at 150% over the next decade. The latest data on UHNWI indicate that developed markets are still an important destination to invest for UHNWI of the developing nations. Cities such as Sydney and Melbourne top the list of growth markets for investments. India and China are large net exporters of wealthy migrants
  • Zooming in on the percentage growth forecast over the next decade, Pune (170%) tops the list, followed by Hyderabad and Bengaluru (both at 160%), Mumbai (150%), Delhi, Chennai and Kolkata (all at140%)
  • In India, Mumbai leads the race with 1340 UHNWIs followed by Delhi (680), Kolkata (280) and Hyderabad (260) UHNWIs
  • Indian cities that saw a rise in UHNWIs compared to 2015 include Pune (18%), Hyderabad and Bangalore (both at 15%) and Mumbai (12%)
  • Bengaluru amongst the top seven hotspots around the world that present exciting opportunities for private property investors in 2017 and beyond
  • In terms of most expensive prime residential i.e. the square metres of prime property US$1m will buy, Mumbai climbed up to rank 15 from 18 last year, ahead of Istanbul, Melbourne and Dubai

 *(Definition of UHNWIs for Wealth Report – Those with US$30m or more in net assets – according to data provided by New World Wealth for Knight Frank Wealth Report)

 Dr. Samantak Das, Chief Economist & National Director – Research, Knight Frank India said, “Over the last ten years we have seen annually 500 new UHNWIs being added in India and we expect this number to double to 1000 every year in the coming decade. Out of 40 global cities, Mumbai ranks 11 in terms of future wealth accumulation ahead of Chicago, Sydney, Paris, Seoul and Dubai. In terms of real estate sector investment, the wealthy Indians have expressed their top priority in the Office segment and Logistics also sees a three-fold rise. Even though the residential market in India is reeling under pressure, 40% of wealthy Indians are likely to invest in residential property in India in the next two years while 25% are keen for overseas avenues.”

 Nicholas Holt, Head of Research for Asia Pacific, Knight Frank Asia Pacific, says, “The Attitudes Survey shows us that more Indian UHNWIs are choosing to send their children overseas for secondary and tertiary education. This has property market implications – as parents are more likely to purchase property in overseas school or university locations, combining investment with the practicalities of housing their children. The top three overseas markets identified by Indian UHNWIs according to the survey are (in order): the UK, Singapore and the US – three of the markets we believe will be the target of Indian property investment going forward.”

Source: Knightfrank

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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