What's happened
Singapore remains the most expensive city for high-net-worth individuals, with Asia and the Middle East seeing rising luxury costs and shifting rankings. Cities like Dubai, Bangkok, and Tokyo are climbing, while Shanghai drops. The global cost of living well declined slightly, driven by changing spending priorities.
What's behind the headline?
The shifting landscape of luxury hubs signals a broader change in global wealth distribution and consumption. Cities in Asia and the Middle East are climbing the ranks due to rising wealth, cultural appeal, and strategic advantages like tax benefits and infrastructure. Dubai's ascent to 7th place exemplifies this trend, driven by its luxury infrastructure and property market. Meanwhile, traditional centers like Shanghai are losing ground, indicating a potential realignment of global luxury markets.
The decline in the overall cost of 'living well' by 2% suggests a shift in high-net-worth individuals' priorities, from material goods to experiences and longevity. This aligns with the broader trend of aspirational consumption, where wellness, curated travel, and health services take precedence. The regional differences highlight how economic momentum and cultural factors influence luxury spending.
This evolution will likely accelerate, with emerging cities in Asia and the Middle East becoming more prominent in the global luxury landscape. Investors and service providers should monitor these shifts, as they will shape future luxury markets and real estate investments.
What the papers say
The Business Insider UK article provides a comprehensive overview of the 2025 luxury cost rankings, highlighting regional shifts and emerging markets like Dubai, Bangkok, and Tokyo. It emphasizes the influence of regional economic growth and cultural appeal on luxury spending.
The NY Post article focuses on the real estate aspect, noting that New York remains a top destination for ultra-wealthy buyers, but its dominance is waning as Miami and other cities gain popularity for second homes. It underscores the importance of location-specific luxury markets.
Both sources complement each other by illustrating how wealth is dispersing across new and traditional luxury hubs, driven by economic, cultural, and strategic factors. The Bloomberg and South China Morning Post articles reinforce the rankings, with Bloomberg noting Shanghai's decline and the SCMP emphasizing Singapore's stability and attractiveness due to its political and economic environment. Together, these reports paint a nuanced picture of a shifting global luxury landscape.
How we got here
The 2025 Julius Baer Global Wealth and Lifestyle Report tracks the cost of 'living well' across 25 cities, based on luxury goods and services. It reflects shifting preferences among high-net-worth individuals, who increasingly prioritize experiences and wellness over material possessions. Regional economic growth and tax advantages influence city rankings.
Go deeper
Common question
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Where Are the Ultra-Wealthy Buying Second Homes Now?
The global luxury real estate market is shifting as the ultra-wealthy seek new investment hotspots. While New York remains a top destination, cities like Miami are rising fast, and Monaco continues to attract high-net-worth individuals. Curious about where the rich are investing in property today? Keep reading to discover the latest trends in luxury real estate and what they mean for global wealth distribution.
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Why Is Singapore Still the Most Expensive City for the Wealthy?
Singapore continues to top the list as the most expensive city for high-net-worth individuals, thanks to its stable political climate, strong economy, and attractive tax policies. But what makes it so costly compared to other global hubs? As luxury costs shift across regions, many are wondering if Singapore's dominance will last or if other cities are catching up. Below, we explore the reasons behind Singapore's high luxury living costs and what this means for the global wealthy.
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