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Knight Frank's Wealth Report 2023 reveals that Indian wealthy prefers art, watches and luxury handbags over other luxury investments. The study shows 53% of the total Indian ultra HNI population prefers to buy art, watches and luxury handbags for investment.
The report said, “53% of ultra wealthy in India are likely to purchase art amongst passion led investments along with watches and luxury handbags, followed by jewelry at 41%. Classic cars came in as the fifth most preferred investment of passion with 29% respondents showing preference to purchase one in 2023. These investment asset classes have been performing well over the global index which has led to many Ultra HNIs to continue their investments.”
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “With the domestic and global market offering significantly higher returns for such articles, Indian ultra-wealthy are actively seeking investment opportunities in passion led investments. The demand for rare articles has been rising across different generations in India and with rise in wealth in India, we can expect more investments in these asset categories.”
Globally, art (59%), watches (46%) and wine (39%) make up the top three categories of passion investments.
In terms of performance, art, cars and watches outperformed other such assets. Art emerged as the top-performing asset, with annual returns of 29%. Classic cars followed it closely by delivering returns of 25%. Similarly, watches secured the third spot with 18% annual return on the luxury index ranking.
