A recent survey conducted for Knight Frank’s The Wealth Report 2025 reveals that luxury cars are the most sought-after luxury asset among the next generation of high-net-worth individuals (HNWIs) in India.
According to the report, 46.5% of Next-Gen Indian HNWIs expressed a desire to own a luxury car. High-end real estate followed as the second most-desired asset, with 25.7% of respondents indicating a preference for luxury homes. Other preferred luxury investments mentioned in the report were art collections, private jets, and superyachts.
This data comes from Knight Frank’s comprehensive Next Generation Survey, which is the first global study of its kind. The survey focused on individuals aged 18 to 35 with an income exceeding USD 125,000, offering valuable insight into the evolving priorities and preferences of the new Generation Wealth.
Globally, 29.8% of surveyed Next Gen HNWIs cited a preference for high-end real estate. Luxury cars were the second most popular choice worldwide, with 27.8% expressing interest, followed by private jets at 15.1%.
Shishir Baijal, Chairman & Managing Director of Knight Frank India, commented on the survey’s findings.
“The next generation of wealthy individuals will play a pivotal role in wealth creation and economic growth,” said Baijal. “Consequently, their aspirations will be of paramount interest to the global luxury industry. As India’s ultra-high-net-worth population continues to expand, new opportunities will emerge for global luxury brands to establish a stronger presence in the Indian market. Sectors such as superyachts, in particular, remain largely untapped and hold significant potential for growth in India.”
The Knight Frank Luxury Investment Index (KFLII) tracks the performance of 10 popular investments of passion. The latest data reveals handbags as the best-performing luxury asset, with prices rising 2.8% in 2024. Despite the overall positive performance of financial markets in 2024, the KFLII experienced a decline of -3.3%, marking a second consecutive year of negative growth.
While five of the ten collectibles sectors tracked managed growth in 2024, the increases were modest, even for the top performers. Classic cars saw a growth of 1.2%. The report highlights the strength within the handbag market. As the Wealth Report 2024 noted, “the ultimate classic handbag, the Hermès Birkin in black Togo leather, is now more valuable than ever when sold on the secondary market.”
Liam Bailey, global head of research at Knight Frank, discussed the long-term performance of luxury collectibles.
“Luxury collectibles have delivered for investors over the long term,” said Bailey. “If you had invested US$1 million in 2005 and tracked KFLII, your investment would now be worth US$5.4 million. The same amount invested in the S&P 500 would have been worth US$5 million by the end of 2024. Unsurprisingly, the luxury sector weathered the global financial crisis better than financial investments, and with the ability to leverage these investments through financing, the boom for collectibles lasted for well over a decade from 2008. While it took equities several years to catch up, the past decade, and the past five years in particular, has seen a consistent pattern of stronger returns from the financial sector.”
The weakest performing sectors were fine art, fine wine, and rare whisky. Fine art experienced a significant downturn, decreasing by 18.3% as the market reversed dramatically from the double-digit growth seen in 2023. Fine wine, impacted by shifts in consumption patterns, declined by 9.1%. The fine wine market experienced a rise influenced by low interest rates during the Covid-19 pandemic, leading to speculative price growth, particularly for Champagne and Burgundy. Additionally, the absence of Chinese buyers also played a role in the market’s decline. Rare whisky had a second poor year with values down 9% in 2024, a market hampered by a rapid increase in stock returning to the secondary market after a decade of strong growth. Its value is now 19.3% lower than its peak in the summer of 2022.
