Art Market Stumbles as Luxury Investments See Mixed Trends

The Knight Frank Wealth Report 2025 highlighted a sharp decline in art prices by 18.3% among popular luxury investments. While luxury assets like handbags and jewellery saw slight gains, art, wine, and rare whisky suffered significant setbacks. Despite these fluctuations, long-term investment in luxury collectibles remains profitable.

The Knight Frank Wealth Report 2025 showcased a tumultuous year for luxury investments, with art prices plummeting by 18.3%, suffering the steepest decline among top sentimental purchases. Wine and rare whisky prices followed suit with a 9% drop each.

Knight Frank's Luxury Investment Index revealed that only five out of ten collectible categories achieved growth in 2024, led by handbags, which saw a modest 2.8% increase. Conversely, fine art faced its worst downturn, reversing previous robust trends from 2023.

Despite some luxury categories struggling, experts highlight the long-term value of such investments. Liam Bailey from Knight Frank noted that a $1 million investment in 2005 would have grown to $5.4 million by 2024, outpacing the S&P 500.

(With inputs from agencies.)