MULTI-ASSETED Anne Ashworth

Luxury TRENDS 2023

ANNE ASHWORTH EYES UP FORECASTS IN PROPERTY, INTERIORS AND ALTERNATIVE INVESTMENTS FOR THE COMING YEAR

Could central London neighbourhoods be less susceptible than other locations to economic chills? Will the shades and shapes of nature triumph as sustainability infl uences thinking in every sphere? Will gold again be a store of value? Are watches set to retain their status as both a smart accessory and investment? Find out what the top forecasters think lies ahead this year for London real estate, retail and the rest:

PROPERTY

There’s a consensus that house prices will slide as the recession bites. But although this outlook may be dispiriting, some will sense opportunity. A tough market can be the moment to trade up to a larger London house, as sellers may become more amenable to o ers. Meanwhile even if economic and geopolitical challenges slow the pace of transactions, London’s attraction as a place to live is unlikely to diminish, with most commentators reckoning that recovery could arrive next year. Aneisha Beveridge, Hamptons residential research director, forecasts that 2024 will be the start of a new housing cycle, with London leading other regions out of the doldrums. The expectation is that the bank base rate will rise to 4.5 per cent as the Bank of England acts to counter surging infl ation. Many homeowners face sharply higher mortgage LONDON’S APPEAL repayments. As a result, Knight Frank predicts that the average London house price could drop by AS A PLACE TO six per cent by Christmas 2023, with more modest LIVE IS UNLIKELY falls of three per cent and four per cent respectively in prime central London (PCL) and the prime TO DIMINISH, suburbs. It predicts that PCL real estate could start WITH MOST COMMENTATORS to be perceived as good value, given that it will be well below its level at the peak of the market in 2014. Savills forecasts a sharper decline of 12.5 per RECKONING cent for mainstream London. But PCL may slip by THAT RECOVERY just two per cent, while the prime suburbs su er a seven per cent reverse. COULD ARRIVE NEXT YEAR INVESTMENTS Expect to start hearing the phrase “the way to make money in property – or the other markets – is to buy before you see the light at the end of the tunnel”. This suggests that investors may start to snap up investment trusts whose share prices are at a discount, that is below the net value of their assets. An investment trust, for the uninitiated, is a fund that holds the shares in other companies, property or infrastructure projects. The scandal surrounding the collapse of FTX, the American cryptocurrency platform, seems to have, for the time being, dispelled the notion that bitcoin and other cryptos are a long-term store of value. The dollar seems likely to remain the safe-haven currency, but there could be a reassessment of gold as an infl ation hedge, with some international central banks building up their reserves. Sharps Pixley has been dealing in bullion in London since 1778 (sharpspixley.com).

RARE WHISKY

Nick Greene, managing partner, Elite Wine & Whisky, elitewineandwhisky.com:

“This year [2022] has been a bumper one for Elite Wine & Whisky. We’ve seen a 70 per cent increase in turnover compared to 2021, and a 150 per cent increase in the volume of new clients. We’re noticing a new tribe of whisky cask collectors emerging, with more millennials and a 25 per cent increase in women investing with us. There’s also unprecedented demand for Scotch whisky internationally, particularly India, China and SE Asia. Amidst global market uncertainty, we’re pleased to see this new cohort of clients willing to explore alternative investments in whisky to diversify their portfolios. Distilleries to look out for in 2023 are Ledaig, Tullibardine and Bunnahabhain.”

ALTERNATIVE INVESTMENTS

The allure of the upscale timepiece seems set to persist, although the pace of increase may slacken a little, following growth of 16 per cent in 2022, as measured by the Knight Frank Luxury Index.

People are collecting watches for their elegance and craftsmanship, but around a quarter of purchases are for investment or resale. Deloitte forecasts that the global market in pre-owned Swiss watches will be worth about £22bn by 2030 such is the clamour for discontinued models.

The quest for returns from other alternative investments also appears likely to persist, albeit at a less frantic rate. The strong performers in the Knight Frank index were rare whisky, driven by the demand for ‘peated’ (smoky) brands, and art, the ultimate alternative and passion investment. Some glorious exhibitions in London’s galleries this year will provide inspiration for those contemplating the acquisition of paintings of any era, including Marina Abramović, Goya and Dante Gabriel Rossetti.

ON THE RISE Clockwise from top left:

The tonal palette of House of Walpole's No.1 Palace Street refl ects the natural interiors trend; auto assets can be gained at The London Classic Car Show in February; expect to see many more winter gardens, like those seen in the Koa apartments, popping up; whisky remains a solid investment in 2023; sustainable Pluck kitchens will continue to appeal to the eco-conscious elite; super-luxe timepiece retailer Watches of Switzerland is expanding its focus to Mayfair

And motor enthusiasts can cast an eye over covetable marques at the Classic Car Show (24-26 February 2023, theclassiccarshowuk.com). Early supercars in mint condition and with low mileage will attract investors.

INTERIORS

The future for decor in 2023 is silver, or so maintains one decor guru. A few may embrace bling. But the key aesthetic of 2023 is set be “grounded simplicity”, as Andrew Tanner, Habitat’s head of design, calls it. This elegant look aims to produce calm and reassurance through the colours and shapes of nature. Sabina Miller, head buyer at Heals, predicts the rise of “natural materials, organic shapes – and natural hues such as almond, amber, auburn and stone”. While Oliver Deadman, head of design at Clive Christian Furniture says that the growing interest in natural materials has seen clients ordering stand-out items like co ee tables carved from one lump of marble. Amid this new passion for organic shapes, Deadman expects kitchen islands to take on a new sculptural feel, blending form and function in an innovative way. Such is the burgeoning enthusiasm for bringing the outdoors in, that apartments with winter gardens (glassed-in balconies) will be a selling point for new apartment developments, such as the Koa apartments in Battersea Power Station (through Savills and JLL). One of the smartest prime central show fl ats – the House of Walpole apartment at Northacre’s Palace Gardens development – is a “love letter” to the nearby gardens of Buckingham Palace. Its designer Sharon Lillywhite of Oliver Burns talks of creating THE LINK a sanctuary for the senses, “with neutral base BETWEEN RETAIL notes, muted tones of grey and blue that refl ect the ever-changing surface of the palace lake and AND DESTINATION sky, alongside earthy tones and soft shades of DINING SEEMS SET TO GROW green and blush.” The emphasis on the natural is set to heighten the demand for sustainability and energy saving STRONGER THIS in every part of the home. Pluck kitchens are YEAR, TARGETING sustainable, long-lasting and avoid the use of hardwoods (pluck.co.uk). The chic will ‘do a Macron’ THE AFFLUENT wearing polo necks and limiting heating to 19°C, GEN Z CROWD like the French president. There will be heightened focus on items that ‘heat the human rather than the room’, but do so with elan. Sirimiri, the British brand that specialises in planetfriendly products, o ers a recycled cashmere blanket, for example.

SHOPPING

The allure of bags, baubles and watches seems undimmed: luxury goods groups have so far proved themselves to be almost immune to economic gloom. But these businesses will still be seeking to evolve, to ensure that they’re delivering the best ‘phygital’ (physical and online) shopping experiences.

The top brands will also be aiming to align with the ecoconsciousness of customers. Audi, BMW and Rolls-Royce will be delivering electric car models. The EV (electric vehicle) will be an EA (essential accessory).

The luxury fashion names to watch next year include Burberry, where chief executive Jonathan Akeroyd will be endeavouring to restore the essential “Britishness” of the brand.

Watches of Switzerland will be launching a new and vast emporium showcasing Rolex on Old Bond Street, following the opening of its fi ve stores at Battersea Power Station.

Restaurants are seen as a crucial part of the Battersea Power Station o ering and the link between retail and destination dining seems set to grow stronger this year, targeting the a uent Gen Z crowd. Late last year the acclaimed Asian-Scandinavian Studio Frantzén made its debut at Harrods. In 2023, other department stores seem set to deliver the same irresistible mix. L

CLASSIC CARS

Martin Clarke, content director, The London Classic Car Show, theclassiccarshowuk.com

“Against a turbulent fi nancial backdrop, the overall classic car market remained buoyant in 2022 according to the Hagerty UK Market Price Guide, in part due to strong performances at the high end, but also because of the emergence of an ‘everyman classics’ market. Many of these market-makers and a range of emergent classics will be present at the London Classic Car Show in 2023, along with generations collections, including celebrations of the Porsche 911’s 60th anniversary and 70 years of Corvette.

The high-end market is in rude health, with the Hagerty Gold Index reporting a 17 per cent rise across the year and ‘star’ performers such as Mercedes 300 SL ‘Gullwing’ Coupe seeing a 35 per cent bump, together with modern classic supercars, like the Ferrari’s 288GTO, F40 and F50 models, setting the pace and all experiencing strong double-digit increases. The emerging ‘everyman classic’ market, including theMGB GT and its Japanese reincarnation, the Mazda MX5, has held up as well, and keeps ‘appreciating classic’ ownership very much within reach of the wider audience.