Last year, real estate was affected by the Corona epidemic. However, due to Corona, there has been a change in the behavior of people. According to a report, around 20 percent of the country’s ultra-high-net worth individuals (UHNWIs) are planning to buy a new house in 2021 this year. Last year the number of such people was only 10 percent. Apart from this, India is the preferred destination for investment for ultra-rich Indians and only after this are American, UK, Singapore and UAE. Globally speaking, about 26 percent of ultra-rich are planning to buy a house in 2021 this year. According to Knight Frank’s The Wealth Report 2021, this demand in major countries globally may increase the price of homes by up to 7 percent. In addition, according to a survey by Knight Frank, 41 percent of ultra-rich Indians can buy a new house in resorts / coastal areas. UHNWI means people who have assets of at least 30 million dollars.
Ultra rich can buy a home for three reasons
According to The Attitude Survey conducted by Knight Frank, there has been an increase in the number of UHNWIs in India who want to buy a new house in 2021. Those surveyed listed three major reasons why they could buy a house in 2021 this year – upgrading their main residence, buying a new holiday home and permanently relocating to another country or elsewhere in India. . UHNWI in India has expressed the possibility of buying a new house in the resorts / coastal area.
These facilities are necessary
According to the survey, it is very important for Indian UHNWI to have facilities like transport links, internet connectivity while choosing a new home. The survey found that most of the Indian UHNWIs have emerged as the top two real estate sectors for office and logistics in India. Globally, their prominence is a residential private rented sector and logistics. Indian UHNWIs allocate 17% of their assets to property investment while globally this figure is 21%.
This year will be better for real estate in 2021
According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, the year 2021 in the Indian market looks promising for real estate. Due to government reforms, the residential market started showing a recovery in the last two quarters of 2020. Investment in the environment, social and governance (ESG) focused property may increase this year in 2021. According to the survey, around 46 percent of Indians are interested in investing in UHNWI ESG-centric properties, while the figure is 43 percent globally. According to Liam Bailey, Global Head of Research at Knight Frank, around 26% of global UHNWIs are looking to buy a new home in 2021. Apart from this, the demand for rural and coastal property has increased because UHNWI is giving priority to living in open space. The epidemic has led to increased demand for places that offer more wellness such as mountains, lakes and coastal hot spots.