India is witnessing a transformative era of wealth creation, with the number of high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) growing at an unprecedented pace. According to a report by Anarock, a real estate consultancy, India’s HNIs population is expected to double by 2027, reaching 1.65 million from the current 850,000. This trend is indicative of India’s rising economic power and the burgeoning wealth of its elite, especially among the younger generation.

HNIs and UHNIs: Key Growth Drivers

In 2024, a significant shift has been observed in the demographic profile of India’s HNIs and UHNIs. Over 15% of HNIs are under 30 years old, a figure that has been driven largely by the booming tech start-ups and initial public offerings (IPOs). Additionally, 20% of HNIs are under the age of 40, with this number expected to increase to 25% by 2030. This emerging trend underscores the growing influence of the start-up ecosystem and the fintech sector, which have played a key role in propelling younger individuals into significant wealth in a short time.

India is ranked sixth globally in terms of its UHNI population and third in Asia, with a remarkable 6% annual growth rate in the number of UHNIs. The UHNI population is projected to increase by 50% by 2028, far outpacing the global growth average of 30%. This growth in ultra-wealthy individuals is primarily being driven by the start-up boom, tech innovations, and an increasing number of IPOs that are creating new wealth.

The Luxury Real Estate Boom

The growth in India’s affluent population is also having a significant impact on the luxury real estate market. In 2024, 28% of total real estate sales were attributed to luxury homes, a notable increase from just 16% before the pandemic. Major cities like Mumbai, Delhi, and Bengaluru continue to be prime locations for luxury properties, while regions like Goa, Alibaug, and Jaipur are increasingly popular for second homes. The desire for luxury living and exclusive residences is fueling the demand for high-end properties across the country.

The rise in the number of UHNIs is also reflected in their growing interest in international properties. Approximately 14% of UHNIs own properties abroad, with popular destinations including Dubai, London, and Singapore. This trend highlights the global nature of wealth accumulation in India and the increasing focus on international diversification.

Sources of Wealth and Investment Patterns

A closer look at the sources of wealth for the newly minted HNIs reveals that a substantial portion—30%—owe their wealth to the tech and start-up sectors. The remainder is attributed to sectors such as manufacturing (21%) and real estate (15%). The technology and start-up sectors continue to be the primary wealth generators, particularly in fintech, AI, and blockchain, where significant growth opportunities are being identified.

India’s wealthy population is also diversifying their investment portfolios. A significant portion, 32%, is being allocated to real estate, which remains a popular asset class for wealth creation and preservation. Additionally, 20% of HNIs are investing in private equity and start-ups, focusing on emerging technologies like AI, blockchain, and cleantech. This trend points to a growing interest in high-growth sectors and future-focused investments.

International Investments and Family Offices

A notable portion of UHNIs are also turning to international markets to broaden their investment horizons. 25% of UHNIs are investing abroad, primarily in North America and Europe, indicating a more global outlook in their wealth strategies. Moreover, 40% of UHNIs have established family offices, which are dedicated entities for managing wealth and engaging in philanthropic activities. These offices are becoming increasingly important as wealth management tools and are seen as a way for affluent families to preserve and grow their wealth over generations.

Conclusion

India’s rising number of HNIs and UHNIs, with 20% of HNIs under 40, reflects the profound economic and wealth shifts happening in the country, driven by the growing start-up ecosystem, tech innovations, and a surge in IPOs. As this trend continues, India is not only becoming a hub for wealth creation but also for luxury investments, with real estate emerging as a major sector. With family offices and global investments becoming key features of wealth management, India’s affluent population is diversifying and expanding their financial portfolios both domestically and internationally.