2016 the year of slowdown for investments in classic cars

01 March 2017

Dubai, UAE – Following a decade of substantial growth, classic cars no longer top Knight Frank’s Luxury Investment Index (KFLII). While a 9% annual growth level is still respectable, it becomes clear that the market has dropped down substantially when set against a total growth of 151% over the past five years.

However, several other asset classes produced some record-breakers in 2016. The sparkliest was the sale of the Oppenheimer Blue, a vivid blue 14.62-carat diamond sold by Christie’s Geneva for the equivalent of almost US$51m, making it the most expensive jewel to ever sell at auction.”

Other examples include:  

·         A Ferrari 1957 335 Sport became the most expensive car to go under the hammer ever, in euro terms at least, when it was sold by Artcurial in Paris for €32m. 

 

·         A rare stainless steel 1941 Patek Philippe ref. 1518 perpetual calendar chronograph with moon phases broke the record for the most expensive wristwatch sold at auction when it went under the hammer with Phillips Geneva for US$11m

 

·         Bonhams London sold a 14.13-carat ring for £1.4m in December against a high estimate of £800,000

 

·         A 1962 Ferrari 250 GTO sold privately is thought to have exceeded the highest sum ever paid at auction last year (US$38m for another 250 GTO sold by Bonhams) for a classic car and was possibly the biggest deal ever struck 

The Knight Frank Luxury Investment Index (to Q4 2016)*

Luxury asset

Price Growth

12-month

10-year

Beverages

24%

267%

Cars

 9%

 457%

Coins

 6%

 195%

Watches

4%

 66%

Jewellery

 3%

 147%

Stamps

 1%

 133%

Coloured Diamonds

 0.4%

 111%

Furniture

 -5%

 -31%

Chinese ceramics

 -14%

 6%

Art

-14%

 139%

KFLII

 2%

 171%

 

Sources: Artmarketresearch.com (Art, Watches, Furniture, Jewellery, Chinese Ceramics); Stanley Gibbons (Stamps, coins); HAGI (Classic cars); Fancy Color Research Foundation (Coloured diamonds)

**KFLII is weighted based on the contribution of each component to a nominal portfolio of luxury assets

http://www.knightfrank.com/wealthreport

ENDS

For further information please contact press@knightfrank.com

Nicola Milton, Head of ME Marketing, +971 4 426 7000, Nicola.milton@me.knightfrank.com

 

Dana Salbak, Head of ME Research, +971 4 4267 681, Dana.Salbak@me.knightfrank.com

Notes to Editors

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 413 offices, in 60 countries, across six continents. More than 14,000 professionals commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.

Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, Bahrain and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. www.knightfrank.ae