In 2024, there is an interesting trend in millionaire migration. India is expected to lose 4,300 millionaires who will move abroad. Other countries facing significant millionaire outflows include China with 15,000, the UK with 9,500, and South Korea with 1,200. This migration pattern raises questions about where these wealthy individuals are heading and why they are leaving their home countries.
Countries Gaining Millionaires
The United Arab Emirates (UAE) is the top destination, gaining 6,700 millionaires. The United States follows, attracting 3,800 millionaires, while Canada is set to gain 3,200. Australia and Singapore are also popular choices, with 3,500 and 2,500 millionaires moving to these countries, respectively. These numbers reflect a significant shift in where the wealthy choose to reside.
Despite the outflow, it is crucial to put India’s situation in context. The country has about 3.5 lakh millionaires, which has doubled in the last eight to ten years. Losing 4,300 millionaires is just a small fraction, roughly 1-1.5%, of the total number. Moreover, India creates around 30,000 new millionaires each year, far outnumbering those who leave. Thus, the narrative that India is losing its wealth does not hold much weight.
Reasons for Leaving
Some believe people leave India due to issues like pollution, infrastructure, and quality of life. However, this does not explain why other developed countries like China and the UK are also losing millionaires. It suggests that the reasons for migration are more complex and not solely tied to the conditions in India. People might move for various personal or professional reasons, and not necessarily because of dissatisfaction with their home country.
Continued Investment in India
Many millionaires who move abroad still keep significant investments in India. They often retain properties, make financial investments, and continue to contribute to the Indian economy. This means that the wealth is not entirely leaving the country. In fact, a large percentage of the millionaires who relocate continue to have strong financial ties to India.
Impact on Real Estate
The real estate sector in India benefits significantly from non-resident Indians (NRIs) and Indians living abroad. In the past year, 25-30% of new real estate sales in cities like Gurgaon and Hyderabad have been attributed to NRIs. This indicates that despite the migration, there is substantial investment flowing back into the country, supporting the economy and the real estate market.
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