Winning Bizness Desk
Mumbai.The global luxury investment market is showing signs of stability, even as investor preferences undergo a clear shift towards rarity and historical value. According to Knight Frank in its *The Wealth Report 2026*, the Luxury Investment Index dipped marginally by 0.4% in 2025, signalling a pause after broader declines seen over the past two years.
Shift towards historically significant assets
Investors are now focusing on assets with strong cultural relevance and proven legacy rather than broad-based luxury categories. This recalibration reflects a more selective approach, where scarcity and heritage are emerging as key drivers of value.
Art and watches lead selective growth
Some segments have bucked the overall trend, driven by strong collector demand:
- Impressionist art investments surged by 13.6%
- Luxury watches grew by 5%, led by brands like Patek Philippe and Rolex
- Modern art prices rose 7%
- Post-war art gained 5.2%
In contrast, the classic cars segment declined by 3.7%, indicating weakening demand in certain traditional categories.
Auction boom lifts high-end art market
A key trigger behind the surge in art values has been high-profile auctions. A standout sale was Portrait of Elizabeth Lederer by Gustav Klimt, which fetched around ₹2,225 crore, becoming the most expensive Impressionist artwork sold at auction.
- Record-breaking auctions boosting confidence
- Increased supply from private collectors
- Global demand for museum-grade pieces
Younger investors embrace fractional ownership
A structural shift is also visible in how investments are being made. Investors under 40 are increasingly opting for fractional ownership platforms, allowing them to buy small digital stakes in high-value assets.
- Shared ownership of art, watches, and cars
- Lower entry barriers for premium assets
- Technology-driven investment platforms
This trend reflects a move away from traditional property-focused investments towards culturally significant collectibles.
India’s ultra-rich population expands steadily
India continues to climb the global wealth ladder. The report ranks the country sixth worldwide in terms of ultra-high-net-worth individuals (UHNWIs), defined as those holding assets of $30 million or more.
- Current UHNWI population: 19,877
- Projected growth: 27% to 25,217 by 2031
- Mumbai accounts for 35.4% of this segment
Billionaire growth outlook remains strong
The number of billionaires in India is also expected to rise sharply over the next five years, reinforcing the country’s position as a key global wealth hub.
- Billionaire population may grow by 51%
- Wealth concentration likely to remain urban-centric
- Luxury investment demand expected to deepen further
The broader trend suggests a maturing market, where informed investors are prioritising legacy, rarity and cultural significance over speculative buying.
