_Luxury investment market stabilises as collectors pivot to rarity and provenance: Knight Frank’s The

Australia – Knight Frank, the leading independent global property consultancy, today launched its landmark 20th edition of The Wealth Report which reveals The Knight Frank Luxury Investment Index (KFLII) recorded a marginal ‑0.4% decline in 2025, signalling stabilisation after two years of broad correction across several collectible categories.

Strength returned to segments focused on rarity, cultural significance and exceptional provenance, reflecting a more disciplined and selective global collector base.

Key Findings:

• KFLII down just ‑0.4% in 2025, a sharp improvement after three years of decline
• Impressionist art saw the highest growth over 2025 – it surged +13.6%, driven by major single‑owner sales and standout results including Gustav Klimt’s Portrait of Elisabeth Lederer, which achieved US$236.4 million - the highest‑ever price for a modern artwork sold at auction
• Watches rose +5.1%, led by strong demand for Patek Philippe’s Aquanaut and Nautilus models and continued resilience from Rolex
• Classic car values fell ‑3.7%, though ‘halo’ models - such as the Ferrari F50 - remained in fierce demand, with major US and European auctions achieving notable results
• Whisky declined ‑10.9%, while Champagne and Burgundy continued their post‑boom corrections following exceptional pandemic‑era growth
• Super‑Tuscans remained the most resilient wine category, showing slight annual gains despite market softness elsewhere
• Fancy colour diamonds held their ground, with blue diamonds appreciating in Q4
• Luxury resale trends shifted toward patina and provenance, with collectors increasingly seeking well‑loved, storied pieces - exemplified by the record-breaking US$10.1 million sale of Jane Birkin’s personal Hermès Birkin bag
• Fractional ownership platforms surged, driven overwhelmingly by investors under 40 seeking access to rare assets across watches, art, cars and more
   

Liam Bailey, global head of research at Knight Frank, commented: “After a cycle defined by extraordinary highs followed by rapid readjustment, the luxury investment market is now entering a more rational and more discerning phase.

“Collectors are increasingly prioritising rarity, provenance and cultural resonance - and younger generations are reshaping ownership models through digital and fractional platforms.”

Full results of Knight Frank’s Luxury Investment Index Q4 2025:

Sources: Knight Frank, Artnet, WatchCharts, LUXUS, Fancy Coloured Research, Liv-Ex, MyArtBroker
Notes: All data to Q4 2025. KFLII is a weighted average of individual asset performance.                   

 -Ends-

For further information, please contact:

Vanessa De Groot – Marketing & Communications, Knight Frank

Vanessa.degroot@au.knightfrank.com +61 410 460211

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 600+ offices across more than 50 territories and more than 20,000 people. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com.