Mumbai: India is expected to account for 5% of the total ultra high net worth individuals (UHNWIs) in the world by 2025, a study said.
According to 'Knight Frank Wealth Report 2016', the country's share in the total number of billionaires is also expected to rise to 6% by 2025.
In the last 10 years, the billionaire count in India jumped nearly fourfold to 78, while the global growth was just 68% at 1,919.
Similarly, UHNWI count over the period rose by 340% to 6,020 people, compared to the global growth of 61% at 1,87,468.
In 2005, India's share of world's UHNWI population stood at 1%.
"Looking at the past numbers, we believe by 2025, India will account for 6% of global billionaire population and 5% of UHNWI population," Knight Frank India Chief Economist and National Director - Research, Samantak Das, said.
According to the report, India ranks third in the projected absolute increase in UHNWI population over the next 10 years after China, with the US topping the list.
"Even though the rate of growth in the number of Indian UHNWIs over the next 10 years in India will slow down, it will still be much higher than the global average," Das said.
Out of 97 cities globally, Mumbai and Delhi, currently ranked 21 and 33, are slated to move up to 14 and 29 positions respectively by 2025, the report said.
Currently, with 1,094 UHNWIs, Mumbai leads in India, followed by Delhi with 545. The next decade is expected to see Mumbai's UHNWIs increase to 2,243 while Delhi's count will stand at 1,128.
"Going forward, Mumbai will continue to maintain its number one position, but the rate of growth in UHNWI population will be marginally higher in New Delhi than in Mumbai," Das said.
The report pointed out that fine arts and antiques have replaced watches while jewelery continues to be the most preferred collectible investment, followed by cars and bikes.
"In the last 10 years, 31% Indian UHNWIs increased their asset allocations to residential real estate (primary or secondary home), and the number is likely to drop to 22% by 2025," Das said.
He, however, said financial instruments remain the preferred investment asset class among wealthy Indians.
"Within real estate sector, the commercial asset class is preferred over the residential segment. Wealthy Indians will maintain this status quo with regard to their investment preferences in future," he added.