The recent Hollywood blockbuster Crazy Rich Asians – a romantic comedy where the female lead discovers her partner comes from an extremely wealthy family in Singapore, couldn’t have come at a more appropriate time. While the film has struck a chord with audiences worldwide, earning over $164 million globally, in real life as well a lot more Asians will be joining the mega-rich club.
In a recent half-year update to 2018 edition of The Wealth Report, international property consultants Knight Frank has pointed out that in the next five years, the number of demi-billionaires (those with $500 million or more in net assets) in Asia will surpass those in North America for the first time ever.
The report uses information from wealth data specialists Wealth-X which predicts that by 2022, the population of demi-billionaires in Asia will be 2,940, a 113% increase from 1,380 in 2012.
Meanwhile, North America’s demi-billionaire population is expected to touch 2,830 by 2022, up 78% from 1,590 in 2012.
Interestingly, the population of demi-billionaires in North America from 2017 to 2018 so far has grown 35%, whereas in Asia the growth is 56%.
After recently overtaking France to become the sixth largest economy, and clocking a GDP growth of 8.2% in the first quarter of FY19, it is no surprise that India is set to contribute significantly to the increase in the number of demi-billionaires in Asia.
The report says by 2022, India will have more persons with assets of $500 million and above, than France and U.K. In 2017, India had 200 demi-billionaires; the number is expected to reach 340 in 2022 according to the report. France’s population of demi-billionaires is expected to touch 310 by 2022 from 230 in 2017, while in the U.K. the number is seen touching 260 by 2022, from 220 last year.
Knight Frank cites strong global economic growth, as well as rising asset prices as key drivers behind the growth in the world’s demi-billionaire population.
The report also mentions that Mumbai displayed only a 0.6% change in the Prime International Residential Index which gauges prices in prime residential markets for 20 of the world’s biggest cities. When compared to Singapore which showed a 11.5% change and Madrid with a 10.3% change in prices, it becomes clear that prices in Mumbai have been largely stable.
Shishir Baijal, chairman & MD, Knight Frank India said the price stability in Mumbai creates a good entry opportunity for buyers. “At the same time, the number of demi-billionaires has been steadily increasing in India and is poised to grow by 70% by 2022, clearly underscoring the potential for demand and price growth going forward,” he added.