According to Knight Frank, the Indian ultra-rich spend 17% of their investable money on luxury goods, with watches being the most popular item, followed by artwork and jewelry. 'The Wealth Report 2024,' published by real estate consultancy Knight Frank in a virtual press conference, drew attention to the fact that 17% of the investable wealth of Indian UHNWI goes into investments related to passion or luxury. People whose net worth is $30 million or more are considered ultra-high net worth persons.
The consultant shared that the survey found that among Indian UHNWIs, the primary motivation for investing in luxury items is the sheer delight of ownership. Luxury timepieces, artwork, and jewels are the most sought-after investment categories among India's ultra-high net worth individuals. Next on the list are vintage automobiles, then high-end purses, rare whisky, antique furniture, colored gems, coins, and wine. But when it comes to the world's wealthiest people, classic vehicles and high-end watches are clear favorites.
"The affluent class in India has long demonstrated a fondness for collectibles spanning various categories," stated Shishir Baijal, Chairman and Managing Director of Knight Frank India, in a report. The ultra-wealthy of India are seizing investing chances in fields that truly ignite their interests, thanks to the substantially higher returns offered by both local and international markets for such things. He went on to say that people of all ages in India are showing a growing interest in rare artifacts."... as the country's wealth grows, we can expect additional investments in these asset classes," Baijal expressed his hope.
In 2023, art prices rose 11%, making it the best-performing luxury asset class, according to the yearly Knight Frank Luxury Investment Index (KFLII), which follows the success of 10 prominent investments of passion. The survey stated that rare whisky continues to command its premium value, registering returns of 280% over a longer period of 10 years, despite a depreciation of 9% in the last 12 months.
In 2023, the KFLII fell 1% for the second year in a row, even though the biggest auction houses saw record-breaking sales in the luxury investment market.This occurred because a number of index components either fell into the red or exhibited negligible increases.
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