Affluent Indian Youth Choose Luxury Cars As Most-Coveted Asset: Knight Frank

Affluent Indian youth are showing a change in trends when it comes to spending their money, they prefer luxury cars more than real estate, as per a recent report by Knight Frank’s Next Gen Survey. The survey was conducted for High-Net-Worth Individuals (HWNIs) falling between the age group of 19 and 35, earning over $125,000 (Rs 1.04 crore) annually. Luxury car was found to be the most coveted asset for around 46.5 per cent of the respondents. Followed by high-end real estate properties for 25.7 per cent of the respondents and private jets favoured by around 9.9 per cent of the respondents.

Shishir Baijal, Chairman & Managing Director, Knight Frank in an official release opined that he sees India’s next generation playing a pivotal role in wealth creation and economic growth. Consequently, their aspirations will be of monumental interest to the global luxury industry. As India’s ultra-high-net-worth citizens continue to grow, new opportunities will arise for global luxury brands to establish a stronger presence in the Indian market. “Sectors such as superyachts, in particular, remain largely untapped and hold important potential for growth in India, Baijal added.

What Current Trends Show?

The car-centric interest showed a rising interest in status symbols and mobility. Despite the coveted assets being cars, the report showed the duality of Indian HNIs. While sleek automobiles dominated aspirational spending, 89 per cent of these affluent youths still preferred owning properties, with 65 per cent planning on upgrading their homes by next year. 

The cohort’s preferences were not just about indulgence. There was a seismic shift seen in India’s economic storyline, where increasing disposable incomes and urbanisation are driving demand for both luxury goods as well as premium housing space. 

Additionally, India is expected to witness a rise of 9.4 per cent in HNWIs with assets worth exceeding Rs 83 crore ($10 million), as per Knight Frank’s The Wealth Report 2025. The estimated HNWI population in 2024 was 85,698 and is expected to grow to 93,753 by 2028. Indicating that riches are going to get richer in India.

Meanwhile, in 2024, the number of Indian HNWIs grew by 6 per cent year-on-year (YoY) to 85,698 from 80,686 in 2023. India is home to 3.7 per cent of the world’s wealthy individuals and ranks 4th globally, following the US with 905,413 HNWIs, China with 471,634 HNWIs, and Japan with 122,119 HNWIs.