Knight Frank has published the 20th anniversary edition of The Wealth Report. The Knight Frank Luxury Investment Index (KFLII), included in the report, recorded a slight decline of 0.4% in 2025, which may indicate that the market is stabilising after two years of correction across many categories of collectible luxury assets.
The best-performing assets were those distinguished by rarity, cultural significance and documented provenance. This suggests that collectors and investors are increasingly guided by the quality and uniqueness of objects, rather than solely by their potential for value appreciation.
Key findings
The KFLII fell by just 0.4% in 2025, marking a clear improvement after three years of declines.
The value of Impressionist works rose by 13.6%. In the art market, collectors’ attention was also drawn to record-breaking transactions, including the sale of Gustav Klimt’s Portrait of Elisabeth Lederer for USD 236.4 million — the highest price ever achieved for a modern work of art sold at auction.
The value of collectible watches increased by 5.1%, driven by demand for Patek Philippe’s Aquanaut and Nautilus models, as well as the continued popularity of Rolex.
Classic car prices fell by 3.7%, although the most sought-after models, such as the Ferrari F50, continued to achieve very high prices at major auctions in Europe and the United States.
The collectible whisky market declined by 10.9%, while champagne and Burgundy wines continued to correct after the exceptionally strong gains seen during the pandemic period.
Among investment-grade wines, Super Tuscans showed the greatest resilience, being the only category to maintain a positive rate of return.
Coloured diamonds retained stable values, while blue diamond prices increased in the final quarter of the year.
In the second-hand luxury goods market, authenticity, provenance and condition are becoming increasingly important. A symbolic example was the sale of Jane Birkin’s personal Hermès Birkin handbag for a record USD 10.1 million.
Fractional ownership platforms are gaining popularity, particularly among investors under the age of 40. These platforms give younger investors access to rare watches, works of art and classic cars.
Liam Bailey, Global Head of Research at Knight Frank, comments:
“After a period of record growth followed by a rapid correction, the luxury investment market is now entering a more mature and rational phase. Collectors are placing increasing importance on uniqueness, provenance and the cultural significance of assets, while younger generations are changing the way luxury goods are invested in and owned through digital solutions and co-ownership models.”
Knight Frank Luxury Investment Index results — Q4 2025
| Asset | Annual change (%) | 10-year change (%) |
|---|---|---|
| KFLII | -0.4 | 38.6 |
| Impressionist art | 13.6 | 0.0 |
| Modern art | 7.1 | -9.3 |
| Post-war art | 5.2 | -0.2 |
| Watches | 5.1 | n/a |
| Art — Top 100 artists | 3.6 | -8.1 |
| European Old Masters | 1.7 | 2.2 |
| Hermès Birkin handbags | -0.2 | n/a |
| Coloured diamonds | -1.0 | 3.1 |
| Italian wines — Liv-ex Italy 100 | -1.7 | 60.8 |
| Wine — Liv-ex 100 | -2.5 | 34.1 |
| Classic cars | -3.7 | 31.3 |
| Burgundy — Liv-ex Burgundy 100 | -4.8 | 105.8 |
| Contemporary art | -6.0 | -0.3 |
| Collectible prints and editions | -6.6 | n/a |
| Collectible whisky | -10.9 | 111.9 |
Source: Knight Frank, Artnet, WatchCharts, LUXUS, Fancy Colour Research, Liv-ex, MyArtBroker
Data as at the end of Q4 2025. The KFLII is a weighted average of the performance of individual asset classes.
Disclaimer:
The information contained in this publication is for informational purposes only. It does not constitute financial advice or any other type of advice, is general in nature and is not addressed to any specific recipient. Before using the information for any purpose, independent advice should be sought.
Source: CEO.com.pl
