Wealthy Indians still spending big – New data

A symphony of passions unfolds across the spectrum, encompassing rare whisky, vibrant colored diamonds, and numismatic treasures.

3 mins read

In the realm of opulent aspirations, the allure of art, exquisite timepieces, and luxury handbags continues to reign supreme as the ultimate forms of passion-driven investment among India’s elite in 2023. A fascinating revelation from the latest ‘Attitudes Survey’ by real estate consultancy Knight Frank unveils the compelling preferences of ultra-high-net-worth individuals (UHNWIs) who seek not just monetary gains, but also the fulfilment of their passions.

A captivating insight gleaned from the survey showcases that 4% of Indian UHNWIs’ wealth is directed towards assets fuelled by passion, echoing a global trend where 5% of the world’s UHNWIs invest in these realms. The yearning to blend monetary prosperity with personal ardor has sculpted a distinctive investment landscape, punctuated by a diverse array of treasured acquisitions.

Art, the epitome of creative expression, stands as the crowning jewel of passion investments, capturing the hearts of 53% of Indian UHNWIs. Luxurious handbags and exquisite timepieces are embraced with equal fervour, evoking a sense of refined elegance and enduring allure. Delving deeper into the realm of passion, a penchant for jewellery reigns supreme for 41% of enthusiasts, while classic cars, reminiscent of timeless craftsmanship, resonate with 29%. A symphony of passions unfolds across the spectrum, encompassing rare whisky, vibrant coloured diamonds, and numismatic treasures.

The report foresees a compelling future as UHNWIs cast their gaze into 2023, with optimism radiating from the prospect of accelerated wealth expansion. India’s ultra-affluent cohort is poised to outshine their global counterparts, underlining the nation’s vibrant potential as a crucible of prosperity.

Shishir Baijal, the visionary Chairman and MD of the esteemed real estate firm, articulates the transformative trend, stating, “Affluent individuals in India are prominently showcasing a strong inclination towards passion-driven investments. In 2023, assets such as art, watches, and luxury handbags remain the most sought-after passion-led investments among Indians, underscoring investors‘ willingness to explore avenues beyond traditional investment options.”

Amidst this tapestry of refined investments, equities emerge as a formidable cornerstone, constituting a notable 34% of Indian UHNWIs’ allocation of investable wealth. This figure surges ahead of the global average of 26%, a testament to the strategic acumen of India’s discerning elite.

A captivating nuance that sets India apart is the allure of commercial properties, a unique inclination shared by 25% of ultra-rich Indians. This landscape diverges from the global scenario, where the figure stands at 33%, and the Asia Pacific region, where it escalates to an impressive 35%. Bonds also garner a substantial share of attention, with 16% of Indian UHNWIs venturing into this realm, mirroring the global average of 17%.

Intriguingly, the enchantment of cryptocurrency, which has mesmerised the global investment landscape, finds fewer takers among India’s ultra-rich. While the world witnesses a 2% allocation towards this modern asset class, India’s luminaries exhibit a distinct preference.

As the realm of passion investments continues to evolve, these insights illuminate the opulent aspirations that shape India’s luxury landscape, forging an indelible fusion of personal passion and prosperous pursuits.