The increasing number of ultra high net worth individuals (UHNWI) and generational wealth transfer are driving growing demand for ‘trophy assets’, according to a report from Taylor Wessing.

Its report, Trophy Assets Guide 2024, aims to support UHNWI advisers in advising their clients effectively amid a projected 28.1 per cent increase in UHNWIs over the next five years.

The guide noted that there had been a “significant shift” in trophy asset interests since the previous iteration of the report nearly 10 years ago, driven by the transfer of wealth from older to younger generations.

It highlighted that younger investors were increasingly drawn to emerging asset classes, such as luxury handbags, sports clubs, and rare watches.

Furthermore, despite the recent economic volatility, the art market was found to have remained robust, with a notable rise in value and recognition of works by female artists.

Classic cars had seen an 82 per cent increase in value over the past decade, with the report discussing how recent high-profile auctions had set new records that emphasised the “significant financial potential” of these assets.

“This trend presents an attractive option for our clients seeking alternative investments with strong appreciation potential,” the report stated.

It also identified a boom in luxury hospitality, with this growth driven by increased global wealth, highlighting the expanding opportunities in luxury accommodations and travel, and making it a “key area of interest” for UHNW investors looking for premium experiences.

While there was a 46 per cent drop in real estate investment volumes last year, Taylor Wessing argued that London remained a top destination for cross-border investments.

Its guide forecast a positive shift in the market, catalysed by falling interest rates and inflation, and positioning London as a favourable environment for strategic real estate investments.

Commenting on the report, Taylor Wessing International Private Wealth group co-head, Ronald Graham, said: “The Taylor Wessing Trophy Assets Guide 2024 is a useful tool for advisers working with UHNW clients.

“It both celebrates the design and passion of trophy assets and provides in-depth insights into the complexities and opportunities helping intermediaries offer informed, strategic advice while managing legal, regulatory, and tax considerations.”

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