The World’s New Wealth Capitals: A Closer Look at the Latest Trends in Luxury

For the third consecutive year, Singapore has been crowned the most expensive city in the world for high-net-worth individuals (HNWIs), as outlined in the latest Global Wealth and Lifestyle Report published by the Julius Baer Group, a renowned Swiss wealth management firm. Is it the sunshine, the governance, or something else entirely that’s drawing the wealthy to this small island nation?

Following closely behind are London and Hong Kong, now ranking second and third respectively. Yet, a subtle transformation is taking place, suggesting that the landscape of luxury living may soon shift dramatically. Have these cities, once the unquestioned bastions of wealth, become too predictable?

The recently released 2025 edition of the report provides an intriguing examination of what it means to “live well.” This concept encapsulates the ability to regularly enjoy 20 different services and amenities that HNWIs typically indulge in. Think about it—what would you include in your list of essentials for a luxurious life?

Among the luxuries considered in this study are private schooling, upscale real estate, exquisite dining experiences, and business-class travel. Data was meticulously collected from 25 major cities between November 2024 and March 2025. The ranking process involved a weighted-average total cost of these 20 luxury items, all converted to US dollars. The meticulous nature of this analysis ensures that what we see isn’t just a snapshot, but an intricate portrait of global wealth.

In addition to the pricing index, the Julius Baer Group also undertook a Lifestyle Survey, engaging with 360 HNWIs across 15 countries. What they discovered could surprise you: while the rankings of the top cities for wealth remain stable, there is a distinct and growing momentum in various regions. Could Asia and the Middle East soon become the new epicenters of global luxury?

The Top 10 Most Expensive Cities for the Wealthy in 2025

1. Singapore
2. London
3. Hong Kong
4. Monaco
5. Zurich
6. Shanghai
7. Dubai
8. New York
9. Paris
10. Milan

The Quiet Rise of New Luxury Capitals

Interestingly, several emerging cities have vaulted up the rankings at a surprisingly rapid pace, particularly in Asia and the Middle East. For instance, Dubai has surged five places to claim the seventh spot, putting pressure on established European strongholds like Monaco and Zurich. What might be driving this meteoric rise?

Both Bangkok and Tokyo experienced an elevation of six spots, landing at 11th and 17th respectively. This shift can be attributed to rising costs in sectors like fashion, luxury watches, and real estate. Just imagine: every new luxury mall or trendy restaurant adds a layer to the cultural tapestry of these cities.

Rishabh Saksena, cohead of Julius Baer’s global asset class specialists, explains, “Bangkok’s growing upper-middle class has had a direct impact on the expansion of the local luxury market.” He goes on to articulate a broader trend: “Increased wealth has mechanically driven demand for luxury goods and services, allowing the development of luxury malls, fine dining, and experiences such as spas.” So what does that mean for everyday citizens? Are these changes enriching the lives of all or primarily benefiting the affluent?

Tokyo’s rise echoes a similar narrative, with Saksena noting, “This region has long been a hub of cultural richness and influence.” With an increasing number of wealthy individuals seeking experiences rather than material possessions, Tokyo is especially well-positioned to capitalize on this shift. If you had to choose between owning a luxury car or enjoying fine dining experiences, which would you prefer?

However, not all cities are witnessing upward trends; the case of Shanghai is telling. Once the envy of the globe, it has dropped from 4th to 6th place in this year’s rankings. Perhaps it’s a poignant reminder that wealth is a fickle companion. Sao Paulo and Mexico City also found themselves slipping in the standings, further hinting at an evolving global landscape. Are we witnessing the twilight of certain luxury capitals?

The report underscores that Dubai is rapidly encroaching on the traditional strongholds of London, Monaco, and Zurich. As the Emirate amplifies its appeal with tax advantages and a luxurious lifestyle, it’s not difficult to understand the allure for HNWIs. The question arises: what will it take for other cities to successfully compete in this evolving landscape?

What’s Driving the Change?

It’s interesting to note that the global average cost of “living well” actually saw a 2% decline between 2024 and 2025. This might come as a surprise, especially in a segment typically shielded from broader economic fluctuations. Yet within this overarching decline exists a tale of stark contrasts.

• Business-class airfare surged by 18.2% globally, fueled by a shortage of aircraft and soaring demand for premium travel.
• Contrarily, the price of luxury goods like handbags and jewelry has declined, reflecting a noteworthy shift in consumer priorities.
• Meanwhile, private school fees in cities such as London skyrocketed by over 25% due to new tax regulations.

Essentially, HNWIs are steering toward valuing experiences over possessions. Are you more inclined to invest in a luxurious vacation or add another expensive item to your wardrobe? This change is notably pronounced in Asia-Pacific and the Middle East, where a focus on wellness and curated experiences increasingly shapes consumer choices.

Mark Matthews, Head of Research Asia at Julius Baer, articulates this burgeoning trend: “The main shift we’ve seen recently is the growing move toward aspirational consumption among HNWIs, who increasingly value experiences over physical goods.” He further notes that locales steeped in a rich cultural history of luxury (like Switzerland) are slower to adapt. How does history shape modern consumer preferences?

The findings from the Lifestyle Survey bolster this assertion. In Europe, where only 36% of HNWIs reported increased spending on hotels, those living in Asia-Pacific and the Middle East exhibited a different story. In Asia, for example, over 65% reported spending more on hotels and watches. Does this reflect a new set of values in these regions, or is it merely a temporary trend?

A Eurasian Future?

Finally, we arrive at some troubling geopolitical implications. The report suggests we might witness a broader reshaping of how and where the wealthy choose to reside. As affluent Americans eye Europe for its perceived stability, many of them might consider permanently relocating. What might this mean for the cities they leave behind?

Even amidst the challenges posed by Brexit and ongoing political uncertainty, London continues to attract global wealth through its unmatched educational opportunities and cultural offerings. Is it possible that London’s allure will endure despite its complexities?

While Dubai is eyeing a future where it plans to double its economy by 2033, it inevitably draws comparisons with Europe’s lofty realms of luxury. The chessboard of wealth distribution is shifting. Are we prepared to witness new kings and queens emerge on this gilded board?

Ultimately, these transformations reflect changing priorities, highlighting the importance of adapting to both economic and social landscapes. What remains certain is that wealth, like life itself, is filled with surprises.

Edited By Ali Musa
Axadle Times International – Monitoring.