Kotak Private Banking has launched India’s first luxury price index, the Kotak Private Luxury Index (KPLI), revealing a 22% surge in luxury prices since 2022. Built with EY, the index tracks UHNI spending across 12 premium categories, showing strong growth in wellness retreats, branded residences and curated experiences amid India’s expanding wealth economy.
TheInterviewTimes.com | November 27, 2025: India’s luxury market has entered a new phase of maturity with the launch of the country’s first luxury price index, designed to capture how ultra-high-net-worth individuals (UHNIs) are spending and preserving value. Kotak Private Banking’s newly unveiled Kotak Private Luxury Index (KPLI) reflects a rapid expansion of premium consumption across real estate, wellness experiences and high-end fashion—signalling luxury’s rise as both a lifestyle statement and an emerging alternative asset class in India.
Kotak Unveils India’s First Luxury Price Index
Kotak Private Banking, with analytical support from Ernst & Young LLP (EY), has introduced the KPLI, a first-of-its-kind benchmark that tracks price movements across 12 luxury categories. With 2022 as its base year, the index aims to provide a structured, data-backed view of premium spending in a rapidly growing wealth ecosystem.
The Luxury Price Index is built on three key parameters:
- Value retention of luxury assets
- Actual spending behaviour of UHNIs
- Relative category size within India’s premium economy
This approach enables KPLI to capture shifts in both “show wealth”—like cars, bags and jewellery—and “slow wealth” tied to wellness and experiences.
22% Jump in Luxury Prices Since 2022
The KPLI has climbed to 122 in 2025, indicating a 22% cumulative increase in luxury prices over three years, or 6.7% annual growth. Several luxury segments, particularly branded residences and designer handbags, have even outperformed major equity benchmarks.
Analysts note that 2022 marked the first post-pandemic reset in luxury spending. Since then, India has transitioned from recovery to structural expansion, driven by intense competition among global luxury brands and rising UHNI purchasing power.
Wellness, Experiences and Real Estate Lead the Surge
The Luxury Price Index identifies wellness as the fastest-growing category, with luxury retreats and health-centric resorts recording an annual price rise of 14.3%. India’s wealthiest households are increasingly shifting from conspicuous consumption to longevity-focused, mindful luxury.
Exclusive, story-driven experiences—from polar expeditions to Michelin-starred tours—have grown 11.6% annually, reflecting a clear pivot toward experiential wealth.
Branded and tech-enabled luxury residences have surged 10.8% annually, cementing their status as the top identity-defining asset for India’s UHNIs.
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Fashion Holds Steady as Watches and Wines Cool
Premium handbags remain one of the strongest performing categories, appreciating 10.2% annually amid demand for collectible heritage pieces.
By contrast, luxury watches and fine wines have seen price corrections, showing that even at the premium end, overheated segments experience cyclical cooling.
The Luxury Price Index covers 12 categories:
prime real estate, designer handbags, luxury watches, curated experiences, wellness, automobiles, fine art, fine jewellery, designer footwear, elite education, fine wines and rare whisky, and luxury travel.
India’s $85 Billion Luxury Runway by 2030
The introduction of KPLI comes at a time when India’s luxury market is projected to triple to $85 billion by 2030. The country’s UHNI population—those with net worth above $30 million—is expected to grow 50% by 2028, creating one of the world’s fastest-growing premium consumer bases.
Kotak and EY believe the luxury price index will serve as both an economic signal and a cultural lens, tracking how India’s wealthiest families allocate capital, express identity and build legacy in a new era of consumption.
Key Takeaways
- Kotak Private Banking has launched India’s first luxury price index, the KPLI.
- Luxury prices have risen 22% since 2022, with strong growth in residences, wellness and experiences.
- Wellness retreats are the fastest-growing category at 14.3% annual price appreciation.
- Handbags continue to perform, while luxury watches and wines face corrections.
- India’s luxury market is set to hit $85 billion by 2030, backed by a rapidly expanding UHNI base.