The luxury asset market – what does the future hold?

As with every sector, the luxury assets market has been greatly impacted by the Covid-19 pandemic, just not in the way you might think. We take a look at what that market looks like now, and where it looks like it's headed in the future.
family office asset management

What you need to know

  • The Covid-19 pandemic has left no corner of the economy untouched – its effect has been felt in every sector across the globe, including that of the luxury assets market.
  • Even those within the UHNWI and family office community have been affected by the pandemic and this is evident in the way they’re consuming luxury assets and goods.
  • After such a seismic global event, where does this leave family office asset management? What is the future of luxury assets? It’s clear that values have shifted and with that, different interests in and expectations of assets and investments.
Investments Updated on October 21, 2022

One common thread that seems to apply across so many disciplines is that unforeseen shocks and so-called “black swan” events act as accelerants for change. They act to bring about shifts in behavior in a matter of months that would have otherwise taken years or even decades to take hold. Against the backdrop of a global pandemic and the many unprecedented governmental policy measures that flowed from it, we are living through such a period of upheaval. This will trigger the death knell for many age-old businesses and trends and usher in a multitude of new opportunities and working practices.

The most obvious example of this over the past twelve months has been the move to home or “flexible” working which looks to become the norm in many industries for many years to come (although at the time of writing, a number of prominent investment banks are leading the charge in calling their staff back to their offices).

Luxury asset management is changing as we know it

There is, however, another change going on in the luxury asset sector, that we have seen firsthand across the last 12 months. By way of additional context, consider the following:

About the Authors

Adam Ramlugon

Adam Ramlugon

Asset ownership

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