After two years of sustained losses, the Knight Frank Luxury Investment Index, which tracks high-end collectibles like art, cars and fine wine, closed 2025 down 0.4%. This suggests that the market has begun to regain traction.
Although values remained under pressure, the annual decline slowed during the year, from -5.3% in the first quarter to -0.4% in the fourth. This resilience came against a backdrop of macro volatility, as tariffs disrupted cross-border trade and often curtailed U.S. buying power for assets located overseas.
The luxury market has had quite a ride over the past half decade. Between 2020 and early 2022, luxury assets recorded their strongest gains since 2013; quarterly growth peaked at 19.1%.
Then, the surge unwound as higher interest rates reset liquidity conditions and pricing expectations; in 2023 and 2024, most asset classes experienced broad-based declines. Still, the longer-term picture remains positive, as the index has risen by 38.6% over the past decade.
Knight Frank found uneven performance during 2025, with some assets delivering solid gains and others recording declines.
Buyers are still active, it said, but are exhibiting increased discipline; they favor rarity, provenance and relative value over momentum-driven purchasing. This shows up across asset classes, from outperformance of trophy artworks to resilience of more accessible, well-priced segments.
The key question in 2026, Knight Frank said, is whether this period of stabilization will translate into recovery, or a more selective market will persist.
See the accompanying gallery for the 12-month, five-year and 10-year performance of luxury assets. In the three wine categories, "Liv-ex 100" is an industry benchmark that refers to the London International Vintners Exchange's index, which represents the price movement of 100 fine wines for which a strong secondary market exists; it is calculated monthly.
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