91% of Assets Owned By Indians Is Real Estate: Wealth Report
After suffering a severe blow that came in the form the global downturn in 2008, India’s wealth has grown by seven per cent on an average over 2000-18, a wealth report by Credit Suisse indicates.
The country is also home to a great number of rich population ─ India has a 0.8 per cent share in the top one per cent of global wealth holders which translates into over four lakh people. Over 3,400 rich Indians have wealth over $50 million while 1,500 others have wealth over $100 million.
However, about 77.4 per cent of India’s wealth is concentrated in the hands of 10 per cent of our population. On the other hand, 60 per cent of India’s poor own just 4.7 per cent of the wealth, reveals the report.
“While wealth has been rising in India, not everyone has shared in this growth. There is still considerable wealth poverty, reflected in the fact that 91% of the adult population has wealth below $10,000. At the other extreme, a small fraction of the population (0.6 per cent of adults) has a net worth over $100,000,” it says.
While the report estimates wealth per adult at $7,020 in mid-2018, it says that Indians typically put most of their money into real estate and other real assets which together make up 91 per cent of one’s assets.
One cannot be accused of misjudgment if one says real estate never goes out of fashion in India. Numbers prove that to be true.
Aspiration Index, a survey conducted by online marketplace Bankbazaar, recently revealed that about 77 per cent of Indian millennial aged between 25-35 years and earning above Rs 20,000 per month have property as their top priority. Among the 12 cities that were surveyed, Chennaiites came forth as the top aspirants when it comes to real estate. Among non-metros, Jaipur emerged as an aspirational city.
Unlike yesteryears, 91 per cent millennials today manage their money themselves without leaving it to any family member or a relationship manager, the report shows.