The Changing Landscape of Global Luxury: 2025’s Most Expensive Cities for Wealth

As the world continues to shift in response to economic and geopolitical changes, certain cities have emerged as the ultimate playgrounds for the affluent. According to the latest Global Wealth and Lifestyle Report from the Julius Baer Group, Singapore maintains its crown as the most expensive city for high-net-worth individuals (HNWIs). This report examines trends influencing global wealth patterns, highlighting how upstart locales, particularly in Asia and the Middle East, are rapidly ascending the ranks.

Singapore: The Steadfast Leader

For the third consecutive year, Singapore claims the top spot in the global rankings. Its potent mix of political stability, favorable taxation, and luxurious amenities has made it an irresistible destination for the wealthy. The city-state not only offers a wide range of upscale services and goods but is also synonymous with high-quality living, appealing to those who prioritize a sophisticated lifestyle.

London: A Familiar Contender

Rising to second place, London has reclaimed its position as one of the world’s most desirable cities for HNWIs. Despite the challenges posed by Brexit, London continues to offer unparalleled access to culture, education, and financial services. Its luxury property market remains robust, supported by a high demand for premium housing, fine dining, and exclusive leisure experiences.

Hong Kong: The Tale of a Decline

In a shifting landscape, Hong Kong slips to third place after being a formidable leader in the past. The city’s unique position as a gateway to Asia is still relevant, but the impacts of political unrest and stringent pandemic measures have taken their toll. While it continues to offer a diverse luxury market, its allure has diminished compared to its competitors.

The Emergence of New Powerhouses

Dubai: The Rising Star

Dubai has made significant strides, climbing five spots to secure seventh place in the rankings. Known for its extravagant lifestyle and luxury infrastructure, Dubai is rapidly becoming a competitor to traditional European strongholds. The city’s ambitious plans to double its economy by 2033, combined with appealing tax advantages, make it an attractive residence for the wealthy. The local real estate market is booming, demonstrating strong demand from HNWIs seeking both homes and investment opportunities.

Bangkok and Tokyo: Unexpected Climbs

Notably rising six positions in the rankings, Bangkok now stands at 11th place. Its burgeoning upper-middle class and increasing luxury market have fueled this surge. According to Rishabh Saksena, cohead of Julius Baer’s Global Asset Class Specialists, Bangkok’s growing affluence has significantly impacted demand for luxury goods, high-end dining experiences, and upscale real estate.

On the other hand, Tokyo lands in 17th place, reflecting a broader trend among HNWIs who increasingly value experiences over material goods. As a city steeped in culture and luxury, Tokyo offers unique experiences in fashion, fine dining, and leisure, appealing greatly to the modern affluent individual.

Luxury Hubs Redefined

As the rankings evolve, several cities—including Monaco, Zurich, and Shanghai—remain firmly on the list but have seen shifts in their positions. Notably, Shanghai, which previously topped the index in 2022, has fallen from 4th to 6th place, suggesting a potential easing of its dominance.

Global Experience vs. Material Wealth

Interestingly, the overall cost of "living well" decreased by 2% in US dollar terms between 2024 and 2025, marking a rare event in a sector typically resistant to economic downturns. Factors contributing to this decline include fluctuating prices of luxury goods like handbags and jewelry along with rising costs for services such as private education in cities such as London.

Experiences Take Precedence

A vital trend observed in the report is the shift toward aspirational consumption. HNWIs now prioritize experiences—from curated travel to fine dining—over mere ownership of luxury items. This change is especially notable in Asia-Pacific and the Middle East, where consumers are increasingly investing in well-being and unique experiences that enhance their lifestyle.

Geopolitical Shifts and Its Impact on Wealth

The report underscores a broader geopolitical rebalancing as high-net-worth individuals reevaluate where they want to reside with increasing political stability becoming a key consideration. As concerns about political disruptions in regions like the United States grow, many affluent individuals express a desire for the stability offered by Europe and Asia.

Overall, the evolving landscape for luxury living and spending signifies more than just rising costs; it is about a deeper connection individuals seek with their surroundings—a richer, more engaging lifestyle that aligns with their values and aspirations. The cities that resonate with these ideals may soon redefine the meaning of luxury in a rapidly transforming world.