We often use the top 1% as a criterion for rich people's wealth. Stories about the lifestyle of the top 1% of Indians are popular.
So how much net wealth (Assets – Liabilities) do you need to be in the top 1% in India, and how does it compare with other countries?
Monaco is the land of the super-rich. It has the highest density of both millionaires and billionaires. No wonder you will need a lot of money to be in the top 1% in Monaco.
Monaco – $7.9 Mn
USA – $4.4 Mn
UK – $1.8 Mn
China – $850,000
Brazil – $280,000
Vietnam – $160,000
India – $60,000
If you own $60,000 (INR 45 lakhs) of net assets in India, you are in the top 1% of the country. Sounds a bit less, right? I was also surprised by this number.
Is there a strong relationship between net wealth and GDP/Capita? Not exactly since it varies a lot among countries.
Top 1% net wealth to GDP/Capita ratio
Monaco – 41
USA – 69
UK – 45
China – 81
Brazil – 41
Vietnam – 57
India – 32
So the top 1% wealth is 81 times GDP/Capita in China while it's just 41 and 32 times in Brazil and India respectively.
Even though the GDP/Capita of both Brazil and India decreased in 2020 due to a contraction in the economy, their ratio is much lower than that of China. It shows wealth inequality is higher in China.
How much prime property can the top 1% buy with their net wealth in each country?
Monaco (Monte Carlo) – 1,276 sq. ft.
USA (NYC) – 1,610
UK (London) – 601
China (Shanghai) – 457
Brazil (Sao Paulo) – 760
India (Bombay) – 68
It's crazy that an Indian who's in the top 1% in the country can buy just 68 sq. ft. of prime property in Bombay. Bombay real estate is unaffordable for even the rich.
One final analysis before we close. How much prime property can a top 1% Indian buy in other countries?
Monaco (Monte Carlo) – 10
USA (NYC) – 22
UK (London) – 20
China (Shanghai) – 32
Brazil (Sao Paulo) – 163
India (Bombay) – 68
It's time to move to Sao Paulo :)
Source: Knight Frank Wealth Report 2021, The World Bank