Art, watches, and luxury handbags will remain the most sought-after investment of passion by ultra-rich Indians in 2023, a new report published by Knight Frank showed. 53 per cent of ultra-high-net-worth Indians are likely to purchase these three items in the current year.
According to "The Wealth Report" released on Wednesday, these three items are followed by jewellery, classic cars, and wine, which are the second most sought passion-led investments for 2023. Passion investments are investments driven by passion and not by monetary gains.
"Affluent individuals in India are prominently showcasing a strong inclination towards passion-driven investments. In 2023, assets such as art, watches, and luxury handbags remain the most sought-after passion-led investments among Indians, underscoring investors' willingness to explore avenues beyond traditional investment options," said Shishir Baijal, chairman and managing director at Knight Frank India.
According to the report, 41 per cent of UHNWIs in India are expected to purchase jewellery as a passion investment in 2023. 29 per cent of these individuals will invest in classic cars and wine each.
Overall, in India, 4 per cent of UHNWIs are expected to allocate their money towards passion investments. Globally, this figure is marginally higher at 5 per cent.
With 59 per cent UHNWIs expected to buy it, art will remain the most sought-after passion investment globally, too, the report added. It will be followed by watches at 46 per cent and wine at 39 per cent.
It also showed that the works of 59 Indian artists were sold at auctions in Asia in 2022. China topped this list with works of 198 artists being sold in the year, followed by 110 Americans. India ranked fifth, following Japan (65) and Korea (60).
The report also published the Knight Frank Luxury Investment Index (KFLII), showing interest in various assets.
On a 12-month basis, art ranked the highest in the index. It was followed by watches and jewellery. On a 10-year basis, however, rare whisky is the most sought-after luxury good. It is followed by wine and watches.
"UHNWIs envisioning their wealth to expand in 2023, are positioning India as a realm of opportunities. The optimism among the ultra-wealthy regarding wealth generation in India surpasses that of their global counterparts by a significant margin, establishing a robust groundwork for making investment and consumption choices," Baijal added.