LAST year, despite major auction houses achieving record-breaking sales, luxury investments dipped into negative territory as froth came off markets. This is based on the Knight Frank Luxury Investment Index (KFLII), which was released last week as part of the real estate consultancy’s annual Wealth Report.

The index, which tracks the performance of 10 popular passion investments, shows that art was the best-performing luxury asset class, with prices rising 11 per cent in 2023.

It was also the only one of Knight Frank’s 10 index constituents to hit double-digit growth last year, with the KFLII down 1 per cent on average.