Luxury investment market stabilises as collectors pivot to rarity and provenance – Knight Frank Luxury Index 2026
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.
Image credit: Knight Frank Wealth Report 2026
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 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.”
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.
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