The surprising passions paying off for investors
The Knight Frank Luxury Investment Index reveals investments of passion are paying strong dividends, in some areas at least
4 min
Art was the investment of passion that gained the most in value in 2023, according to Knight Frank’s Luxury Investment Index (KFLII). This is the second consecutive year that art has risen the most among the 10 popular investments tracked by the index, up 11 percent in 2023 and 29 percent in 2022. Art was followed by 8 percent growth in jewellery, 5 percent growth in watches, 4 percent growth in coins and 2 percent growth in coloured diamonds last year.
The weakest performers were rare whisky bottles, which lost nine percent of their value, classic cars down six percent and designer handbags down four percent. Luxury collectables are typically held by ultra-high-net-worth individuals (UHNWIs) who have a net worth of US$30 million or more. Knight Frank research shows 20 percent of UHNWI investment asset portfolios are allocated to collectables.
In 2023, the KFLII fell for only the second time, with prices down 1 percent on average.
“Despite record-breaking individual sales in 2023, a surge in financial market returns contributed to a shift in allocations impacting on luxury asset value,” the report said. “… our assessment reveals a need for an ever more discerning approach from investors, with significant volatility by sub-market.”
Sebastian Duthy of AMR said the 2023 art auction year began with notable sales including a record price for a Bronzino piece. But confidence waned as the year went on.
“It was telling that in May, Sotheby’s inserted one of its top Old Master lots – a Rubens’ portrait – into a 20th Century Modern evening sale. But by then, it was clear that the confidence among sellers, set by the previous year’s record-busting figures, was ebbing away. In the same month, modern and contemporary works from the collection of the late financier Gerald Fineberg sold well below pre-auction estimates.”
The value of ultra contemporary or ‘red-chip’ art contracted the most in 2023.
“Works by a growing group of artists born after 1980 have been heavily promoted by mega galleries and auction houses in recent years. With freshly painted works in excess of £100,000 almost doubling in 2022, it was little surprise that this sector was one of the biggest casualties last year. There is a risk there are now simply too many fresh paint artists with none really standing out.”
In the jewellery market, Mr Duthy noted that demand was strongest for coloured gemstones of exceptional quality, iconic signed period jewels, single-owner collections, and items with historic provenance in 2023. In the watches market, Mr Duthy said collectors chased the most iconic and rare timepieces.
“A Rolex John Player Special broke the model record when it sold for £2 million at Sotheby’s in May, double the price for a similar example sold at Phillips in 2021,” he said.
Although whisky was the worst-performing collectable in 2023, it has delivered the highest return on investment among the 10 items tracked by the index over the past decade, up 280 percent. Andy Simpson of Simpson Reserved, said 2023 was a challenging year but the best of the best bottles gained 20 percent in value. “In my opinion some bottles that lost significant value in 2023 will return through the next two years as they are simply so scarce and, right now at least, so undervalued,” Mr Simpson said.
Classic car expert Dietrich Hatlapa said the 6 percent fall in collectable vehicle values in 2023 followed a 22 percent surge in 2022. “The strong performance of other investment classes such as equities may have dampened collectors’ appetites – it’s a very small market so it only takes a minor change in portfolio allocations to have an effect, and there has also probably been a degree of profit taking. However, we have seen some marques like BMW (up 9 percent in value) and Lamborghini (up 18 percent), which appeal to a younger breed of collector, buck the trend in 2023.”
Mr Duthy said a dip in the share price of the top luxury handbag brands last Autumn appeared to spook investors. “Last autumn it was possible to pick up an Hermès white Niloticus Himalaya Birkin in good condition for under £50,000. The recent slide reflects a general correction at the upper end that’s been underway for some time rather than changing attitudes to the harvesting of exotic skins.”
According to Knight Frank’s Attitudes Survey, the top five investments of passion among Australian UHNWIs are classic cars, art and wine. Fine wine values gained just 1 percent in 2023 as the market continued its correction, said Nick Martin of Wine Owners. “It’s been a hell of a long run, so I’m not that surprised. Some wines from very small producers that had enjoyed the most exuberant growth have seen the biggest drops. It had got a bit silly, £50 bottles had shot up to £200 or £300.”
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Soneva’s groundbreaking Coral Restoration Program in the Maldives has been endorsed by the United Nations and listed on UNESCO’s Ocean Decade platform, recognising it as a global model for reef regeneration and sustainable marine science.
2 min
In a landmark moment for marine conservation, the Soneva Foundation’s Coral Restoration Program has received official endorsement from the United Nations and been listed on the UNESCO Ocean Decade website — an international recognition of its pioneering work in large-scale reef restoration.
Based in the Maldives and operating from Soneva Fushi’s AquaTerra science centre, the program is now the region’s largest coral restoration facility. Combining advanced marine biology with local collaboration, it has redefined how the tourism sector can contribute meaningfully to ocean health.
What sets the program apart is its blend of innovation and scale. The facility includes a Coral Spawning and Rearing Lab—Maldives’ first of its kind—replicating natural reef conditions to stimulate coral reproduction. Thirty micro-fragmentation tanks further accelerate coral growth, enabling up to 150,000 coral fragments to be produced and replanted on damaged reefs each year.
Since launching in 2022, Soneva’s coral team has relocated more than 31,000 coral colonies and fragments from threatened areas, establishing a thriving coral hub in the Indian Ocean.
he initiative is managed by Soneva Conservation, a Maldivian NGO set up by the Soneva Foundation, and forms part of the group’s broader sustainability strategy.
“This milestone is a testament to the scientific rigour and community-driven ethos at the heart of our work,” Dr Johanna Leonhardt, Soneva’s Coral Project Manager, said. “It validates the potential of hospitality to lead ocean regeneration at scale.”
Beyond science, the program engages governments, NGOs, research institutions and the wider tourism industry—demonstrating how cross-sector partnerships can drive real environmental impact.
The UN recognition now positions the project as a beacon for similar initiatives globally, reinforcing the Maldives’ role as both a luxury destination and a marine conservation leader.
The Soneva Foundation’s wider environmental efforts include carbon mitigation projects, reforestation, and waste-to-wealth innovation. As part of the Pallion group, Soneva continues to redefine what it means to be a responsible luxury brand.
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