India ranks second on the list of countries with large outflows of high net worth individuals (HNWI) in 2017, with 7,000 Indian HNWI migrating to other countries, according to a new report released this month. Most ultra-rich Indians moved to the United States, United Arab Emirates (UAE), Canada, Australia or New Zealand, the report said.
The 2018 Global Wealth Migration Review, published by the AfrAsia Bank, showed that 10,000 Chinese HNWI migrated in 2017, while the corresponding figure from Turkey was 6,000, giving it the third spot. Chinese HNWIs moved to the United States, Canada and Australia, while Turkish HNWIs moved to Europe and the UAE.
Australia is the top destination for migration for millionaires, with an inflow of 10,000 super-rich individuals in 2017, with most of them migrating from China and India, among other nations. Australia beat its main rival, the United States, for the third year running.
The report pointed out that approximately 95,000 millionaires migrated in 2017, compared to 82,000 in 2016 and 64,000 in 2015. The United States was the second preferred destination for HNWI, with 9,000 of them migrating to the country in 2017. Canada and United Arab Emirates shared the third spot, with 5 000 millionaires coming to these countries.
The popular places in Australia that these rich individuals preferred included Sydney, Melbourne, Gold Coast, Sunshine Coast, Perth and Brisbane, the report pointed out. “Australia’s location makes it a better base for doing business in emerging Asian countries such as China, Japan, South Korea, Hong Kong, Singapore and Vietnam. Australia was recently rated as the safest country for woman worldwide during our annual woman safety ratings. It is also a particularly safe country to raise children,” the report said, explaining the reasons for the preference of Australia over the United States.
Many of the traditional arguments against immigration, including that immigrants place pressure on public healthcare and social services, and that they push down wages due to oversupply of cheap labor, do not apply to wealthy people. This is because HNWIs don’t take low-paying jobs and are very unlikely to claim benefits.
The United States was the second most popular destination for migrating HNWIs in 2017, with most of them preferring to move to New York City, Los Angeles, Seattle and the San Francisco Bay area.
According to the report, global wealth rose by 12 per cent in 2017 — from $192 trillion at the end of 2016 to $215 trillion at the end of 2017. India was the world’s best performing wealth market in 2016-2017, with 25 per cent growth in that period. China and Malta followed India with 22 per cent wealth growth during 2016-2017.
India is expected to be among the fastest growing wealth markets owing to the large number of entrepreneurs and good educational system. There is a strong growth forecast in the local financial services, IT, business process outsourcing, real estate, healthcare and media sectors, the report added.