High net-worth individuals increasingly attracted to luxury art


Lucy Ingham
Lucy Ingham
Head of Content
Lucy is Head of Content overseeing all content and taking deep dives into the trends and data driving changes in payments. Previously, Lucy worked as a technology journalist and editor,… Read more
  • The Knight Frank Luxury Investment Index 2023 has shown that art is one of the fastest-growing luxury investment industries.
  • Residential real estate and luxury jewellery and watches are also some of the fastest-growing luxury sectors for high net-worth individuals (HNWIs).
  • Interest in precious stones, cars and furniture has also increased, influencing the overall index's growth.

A new study has revealed that high-end art is one of the fastest-growing luxury investment sectors among HNWIs, showing a 12-month growth of 30%, according to Art Market Research's (AMR) All Art Index.

AMR Director Sebastien Duthy observed that the spring auction season’s results are the first measure of market trust and indicate that HNWIs are still attracted to high-end artwork despite increasing global interest rates.

The Knight Frank 'Luxury Investment Index for H1 2023’ analyses the varying social perceptions affecting luxury investment markets.

The Investment Index has also shown that art has grown considerably faster in the year-over-year period from July 2022 than it has in the past decade.

Knight Frank’s report also shows that watches and jewellery lead the way, accounting for 10% of the index’s total value. Coins follow in fourth place with a price increase of 8%.

Art, watches and luxury handbags are predicted to be the most desired purchases for ultra-high net-worth individuals (UHNWIs) for the remainder of 2023, with 53% expected to invest in collectable pieces.

Investment in coloured diamonds has increased by 4% in the index to take eighth place in the rankings for H1 2023. The remaining top 10 are occupied by handbags, furniture and rare whisky.

HNWIs wishing to invest in overseas luxury items should use a safe money transfer method when making payments.

The index also indicated that female artists have seen a price surge in the art market. Additionally, a younger generation of wealthy car enthusiasts have shown a greater interest in electric supercar conversions instead of petrol power.

Based on the Knight Frank Attitudes Survey, it is predicted that 4% of UHNWIs, particularly those living in India, will put their wealth into investments based more on personal interests than financial returns in 2023.

The survey suggested that luxury property developers are beginning to consider collectable art and luxury items when designing new high-end homes for HNWIs.

International HNWIs seeking to invest in the luxury market should secure an efficient money transfer method to make international payments between countries.

Wealthy individuals looking to purchase luxury art, cars or watches abroad can use our money transfer comparison tool to find the best exchange rates.

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