Art and wine overtake classic cars as top luxury investments, according to Knight Frank Luxury Investment Index

Classic cars have shown negative growth over a 12-month period for the first time since the creation of the Knight Frank Luxury Investment Index (KFLII). The latest issue of KFLII  reveals that classic cars slid by 1% to the end of Q1 2018. Art now tops the index with an annual growth of 21%.

The sharp decline in the classic car market from the double-digit growth of recent years is largely because speculative investors have left the market, says HAGI’s Dietrich Hatlapa. “The most active buyers are the really knowledgeable collectors and enthusiasts who know what they are doing and exactly what they want.”

Art, meanwhile, continues to top KFLII with annual growth of 21%, having almost been at the bottom of the rankings this time last year.

Salvator Mundi, a work by the Old Master Leonardo da Vinci, sold for a staggering $450m last year, but paintings by less well-known artists have also been generating multi-million dollar results, says Sebastian Duthy, of Art Market Research.

The Knight Frank Fine Wine Icons Index, compiled by Wine Owners, recorded overall growth of 9% over twelve months to Q1 2018, but the various sectors of the market are running at different speeds, says Nick Martin of Wine Owners. “The very top of the Burgundy market is on fire, with growth of between 20% and 70%, but Bordeaux is more of a mixed bag.”

Knight Frank Luxury Investment Index (to Q1 2018)