Indian ultra rich spending on luxury watches, art, handbags equally in 2023 | Mint
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Business News/ Money / Indian ultra rich spending on luxury watches, art, handbags equally in 2023
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Indian ultra rich spending on luxury watches, art, handbags equally in 2023

Within investments of passion, over half or 53% Indians prefer to spend on art, luxury handbags and watches alike.

Indian ultra rich spending on luxury watches, art, handbags equally in 2023. (File Photo)Premium
Indian ultra rich spending on luxury watches, art, handbags equally in 2023. (File Photo)

New Delhi: Art, watches, and luxury handbags remain the most sought-after investment of passion in 2023 for super rich Indians. Over half the ultra-high-net-worth individuals' (UHNWIs) will also make a purchase in categories like classic cars, wine and furniture are the second most sought passion led investments this year in 2023.

According to a report released by real estate consultancy, Knight Frank, under its ‘Attitudes Survey’, 4% of Indian UHNWIs wealth is expected to be pursued in assets which are passion driven rather than monetary gains.

This figure is quite close to how the world also spends on these types of assets. About 5% of the UHNWIs in the world spend on these assets, which is the same percentage in the Asia Pacific region as well.

Within investments of passion, over half or 53% Indians prefer to spend on art, luxury handbags and watches alike.

Jewellery accounts for 41% of all passion investments, classic cars, 29% and the rest fall in the furniture, rare whisky, coloured diamonds and coins categories.

The agency expects that UHNWIs envision their wealth to expand in 2023 and the ultra-wealthy are optimistic about wealth generation in India which could surpass global counterparts by a significant margin.

“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," Shishir Baijal, chairman and MD of the real estate firm said.

Even now, a sizable number of Indians in terms of the proportion of investable wealth allocated to various asset classes is driven by equities with about 34% Indians spending on that, far greater than the global average of 26%.

What is of note is that about 25% of the ultra rich Indians spend on commercial properties, unlike across the world where the number is 33%. In Asia Pacific, the number is even higher at 35%. Indians also spend a sizable amount on bonds, with about 16% investing in that category, similar to the global average of 17%.

Interestingly, few ultra rich Indians want to spend on crypto assets unlike the rest of the world, that denote 2% spends on the asset class.

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ABOUT THE AUTHOR
Varuni Khosla
Varuni Khosla is a journalist with close to 14 years of experience in writing business news stories for mainstream newspaper companies like Mint and The Economic Times. She reports and writes on luxury and lifestyle brands, hospitality and tourism news, the business of sports, the business of advertising and marketing and alcohol brands.
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Published: 09 Aug 2023, 07:07 PM IST
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