60 Second Property Digest – Inflation-busting luxury investments in 2022

What were the top performing asset classes in 2022 from the Knight Frank Luxury Investment Index?

The Knight Frank Luxury Investment Index is a key part of The Wealth Report and tracks the performance of 10 investments of passion collected by high-net-worth individuals around the world.

Last year, many of their collections proved to be a valuable hedge against inflation. Art led the way with growth of almost 30%, followed by classic cars and watches.

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After a period of explosive growth, bottles of very rare whisky rose by just 3% in 2022 as speculators stepped back from the market. But with a 10-year return of almost 400% collectors shouldn’t be too disappointed.

Record auction spending

The amounts collectors spend on their passions is staggering and records tumbled last year. For example, a one-of-a-pair 1955 Mercedes 300SL sold for over 140 million US dollars, making it by far and away the most expensive car ever.

Image courtesy of Sotheby's

Future investments 

I’m often asked what luxury investment will be the next big thing. Younger investors are increasingly driving the market with new asset classes like sneakers or even Pokémon cards fetching millions of dollars.

Ultimately you should buy what you love and will give you pleasure. If it increases in value that’s a bonus.

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