Singapore tops global luxury spending index for third year, London climbs to second
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Singapore has once again claimed the top spot as the most expensive city in the world for luxury spending, according to Swiss wealth manager Julius Baer’s 2025 Global Wealth and Lifestyle Report.
This marks the city-state’s third consecutive year at the top, reflecting its continued appeal for the affluent due to its political stability and secure environment.
London overtook Hong Kong to rank second, propelled by a sharp rise in private school fees - up by 26.6% - and a nearly 30% increase in business class flight costs.
Monaco, Zurich, and Shanghai followed, with Shanghai slipping from its previous higher rank.
This year’s index also marks a notable shift: for the first time since Julius Baer launched the survey in 2020, the overall cost of luxury goods dipped by 2%.
“Quite exceptional,” the bank noted, given that luxury prices traditionally outpace general inflation. “In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment 'before' the current situation,” said Christian Gattiker, head of research at Julius Baer. He added that next year’s report “will likely provide a fascinating 'after' perspective.”
Hong Kong, while losing ground, saw a boost in interest from wealthy individuals through a new investment-for-residency scheme. Meanwhile, hotel suite prices in Singapore surged 10.3%, while those in Hong Kong fell by more than a quarter.
Despite London’s rise in the rankings, the city has faced turbulence due to recent legislative changes, notably the removal of the non-domiciled residency status. These developments have driven interest toward other global hubs such as Dubai, Milan, and Zurich.
Dubai, in particular, jumped five spots to secure seventh place, emerging as a serious contender among traditional wealth capitals. Julius Baer noted, “The momentum of millionaires relocating to Dubai, which began during the pandemic, is predicted to continue.”
New York came in at number eight, remaining the only city from the Americas to feature in the top 10. In contrast, Sao Paulo and Mexico City experienced the steepest declines, falling to 16th and 21st place respectively.
The report also highlighted a cooling off in the luxury sector, citing higher interest rates, slowing global economic growth, and mounting trade tensions.
Technology prices contributed significantly to the overall price drop, while business class airfare defied the trend, increasing by 18.2%.
Julius Baer's Lifestyle Index evaluates 25 global cities based on luxury spending categories such as real estate, automobiles, fine dining, private schooling, and premium travel. The data was compiled from February to March 2025, surveying individuals with household investable assets of $1 million or more.
