Mumbai Ranked Ahead of Washington

Knight Frank, a leading global property consulting company has just released ‘The Wealth Report 2017’, of which the ‘City Wealth Index’ ranks Mumbai at 21st, based on the number of Ultra High Net Worth Individuals (UHNWI) residing in major cities covered by the report.

The report covers 125 cities in 89 countries and is based on responses to a detailed survey carried out with 900 of the world’s leading private bankers and wealth managers. A UNHWI is described as an individual with a net worth of over Rs 200 crore ($30 million).

The City Wealth Index is a city-wise ranking of major cities based on the number of UNHWIs living there. The fact that Mumbai is ranked 21st, ahead of apparently more popular cities like Washington DC, Toronto and Moscow does come as a bit of a surprise.

Another city to rank high is Delhi, at 35, ahead of cities like Seattle and Bangkok. In terms of ‘Future Wealth’ ranking, Mumbai is at 11th position among 40 leading cities with maximum potential for UNHWI growth in the coming decade. Mumbai has earned a ranking higher than Paris, Chicago, Sydney, Seoul and Dubai.

The total number of UNHWIs currently in India are 6,740, well ahead of countries like Russia, UAE, Singapore and Brazil. China recorded 14,310 followed by UK at 9,470. Expectedly, US tops the list with 68,990 UNHWIs.

The report also revealed some interesting facts about UNHWIs in India and their city-wise distribution. Mumbai tops the list with 1,340, Delhi – 680, Kolkata – 280 and Hyderabad – 260.

In terms of percentage growth over 2015, Pune led the pack growing at 18%, followed by Bengaluru and Hyderabad at 15%, with Mumbai right after at 12%.

Between 2006-2016, the number of UNHWIs in India grew by 290%, while the next decade between 2016-2026 is expected to see the number of UNHWIs grow by 150%.

So how does Mumbai beat infrastructure blues to house the largest number of UNHWIs in India?

Despite poor infrastructure, Mumbai continues to be home to the wealthiest in India. While Delhi has always been the power capital, Mumbai has continued to remain the financial hub, with leading wealth creating industries like real estate, gems and jewellery, stock broking, film making and trading being based there.

While this has been a traditional lead, it is interesting to witness cities like Pune, Hyderabad and Bengaluru fast catching up in wealth creation. The next decade will see Mumbai climb even higher in ranking, as per the report.

It is heartening to note that India continues to produce so many UNHWIs; however, it will be very welcome to see the divide between the UNHWIs and the rest getting narrower.