High-net-worth individuals prioritise well-being over material possessions

Millionaires prioritise well-being over material possessions Keystone-SDA

The priorities of wealthy individuals have shifted against the backdrop of ongoing geopolitical tensions and trade disputes. While spending on luxury goods is declining, demand for travel and experiences is unabated.

The cost of living a luxurious lifestyle has fallen on average in the 25 cities analysed for the first time in years, according to Swiss private bank Julius Baer’s Global Wealth and Lifestyle Report published on Monday.

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The basket of twelve consumer goods and eight luxury services compiled by the Zurich-based bank has become 2% cheaper in US dollar terms since 2024. Services have only become 0.2%, while the prices of goods have fallen significantly by 3.4%. The main reason for this was the decline in prices of tech products (-22.6%), where prices for the MacBook were lowered following the introduction of Apple’s new chip.

However, the decline in prices of handbags, jewellery, champagne and women’s shoes also points to lower luxury consumption, according to the study.

More spending on flights and health

Although spending on luxury goods fell last year, this does not mean that wealthy individuals are buying less overall. Business class flights, on the other hand, became significantly more expensive with an increase of more than 18%. This was driven by changes in pricing models, limited flight capacities and the continuing demand for high-quality travel options.

There is also a trend towards health and longevity. Over 80% of the study participants stated that they are actively taking measures to extend their lifespan. These range from a more health-conscious lifestyle to interventions such as gene therapy and cryogenic treatments.

Zurich is the fifth most expensive city

Meanwhile, living in luxury does not cost the same everywhere: according to the study, the world’s most expensive city for millionaires is still Singapore. London rose to second place, pushing Hong Kong into third place. However, Monaco and Zurich also moved up to fourth and fifth place respectively and Dubai continues its upward trend. High-net-worth individuals (HNWIs) continue to live most luxuriously in the South African metropolis of Johannesburg.

Adapted from German by DeepL/ac

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