The Rise of Next-Gen Indian HNWIs | Luxury Cars Over Real Estate

In an era where luxury investments define the aspirations of the wealthy, the next generation of Indian high-net-worth individuals (HNWIs) is redefining opulence. According to Knight Frank’s The Wealth Report 2025, 46.5% of Indian Next-Gen HNWIs prioritize luxury cars over any other asset, making it their most sought-after investment.

The Changing Landscape of Luxury Investments

The report’s global findings indicate that while 29.8% of Next-Gen HNWIs worldwide prefer high-end real estate, 27.8% opt for luxury cars, followed by 15.1% who aspire to own private jets. However, in India, the preference leans strongly towards high-end automobiles, with real estate trailing behind at 25.7%.

Understanding the Mindset of Wealthy Young Investors

Knight Frank’s Next Generation Survey, a groundbreaking global study covering individuals aged 18 to 35 with an annual income exceeding USD 125,000, sheds light on the evolving preferences of modern wealth holders. As this affluent demographic expands, global luxury brands are poised to leverage emerging opportunities within India’s burgeoning luxury sector.

India’s Untapped Luxury Potential

Shishir Baijal, Chairman & Managing Director, Knight Frank India, highlights the significance of this shift, emphasizing that the aspirations of young wealthy individuals will shape the future of luxury markets. While sectors like real estate and automobiles continue to thrive, untapped markets such as superyachts present significant potential for growth.

Knight Frank Luxury Investment Index (KFLII) Insights

The Knight Frank Luxury Investment Index (KFLII) tracks ten popular passion investments. In 2024, handbags emerged as the best-performing asset class, witnessing a 2.8% price increase. However, despite a flourishing financial market, KFLII reported a -3.3% decline, marking its second consecutive year of negative growth.

The Shifting Market for Luxury Collectibles

Among collectibles, classic cars saw modest growth of 1.2%, whereas fine art, wine, and whisky underperformed significantly. Art values plummeted by 18.3%, marking a reversal from the double-digit growth seen in 2023. Fine wine declined by 9.1%, driven by shifting consumption patterns and the absence of Chinese buyers in the market.

Rare Whisky’s Struggles

The rare whisky market, once a booming sector, has suffered its second consecutive year of decline, with values dropping 9% in 2024. The sector has now seen a 19.3% decline from its peak in summer 2022 due to increased secondary market supply.

Final Thoughts: A New Era of Wealth Preferences

The Knight Frank Wealth Report 2025 paints a compelling picture of shifting luxury investment trends. As the Indian ultra-wealthy population expands, luxury brands must adapt to these evolving aspirations, positioning themselves strategically to cater to the dynamic preferences of Next-Gen HNWIs.