Assets of high net worth individuals (HNWI) across Asia are expected to increase 2.6 times to $14.5 trillion by 2020, according to the Julius Baer Wealth Report.
The report defines HNWI as people with a net investable wealth of $1 million or more, excluding the property that is their main residence. The Swiss private banking group expects HNWI assets in China and India to touch $8.25 trillion and $2.3 trillion, respectively, in the next four years.
On India, they believe the rise in average per capita spending, and government measures at boosting rural income are likely to push domestic consumption.
“With a Gross Domestic Product growth rate (annual) around 7.5 per cent and a strong future outlook, India’s growth story is making it an increasingly attractive market and this trend is expected to continue. In the Asia-Pacific, India is among the top five countries in terms of HNWIs, with a unique demographic profile. This necessitates a different approach to wealth management and advisory,” said Atul Singh, chief executive officer at Julius Baer Wealth Advisors India.
Shanghai, Singapore and Hong Kong emerged the most expensive cities in Asia, with Mumbai the least expensive, according to the wealth report. The survey analysed the 11 top cities. “We expect moderate growth of luxury and high-end goods and services in India, which remains a domestically driven market. Despite a growing number of HNWIs, research has shown that India’s affluent consumers tend to shy away from ostentatious display of wealth,” it said.