High-net-worth individuals saw the cost of maintaining a premium lifestyle climb 10.2% in U.S. dollar terms over the past year, but the primary driver was currency appreciation rather than local price increases, according to Julius Baer's newly released Global Wealth and Lifestyle Report 2026. The report, which tracks a basket of 20 luxury goods and services across 25 cities, found that cities tied to strengthening currencies—particularly the Swiss franc and the euro—rose in the rankings, while those more aligned with the U.S. dollar slipped.
For the first time in three years, no city from the Americas made the global top ten. New York remained the region's highest-ranked city, followed by São Paulo, which climbed to 12th. Santiago de Chile and Mexico City also advanced, buoyed by local price growth and favorable currency shifts. North America showed robust wealth accumulation and steady investment activity, while Latin American HNWIs adopted a more cautious stance, prioritizing preservation of purchasing power.
Singapore Holds Top Spot; Zurich and Monaco Surge
Singapore retained its position as the world's costliest city for wealthy individuals for a fourth consecutive year, a ranking Julius Baer attributed to steep residential property and car prices, along with the strength of the Singapore dollar. Local price rises remained relatively contained, but the currency's strength meant overall costs still tracked the global average once converted into U.S. dollars. Zurich jumped three places to second, driven by the Swiss franc's appreciation against the dollar rather than by steep local price rises. Monaco broke into the top three for the first time, lifted by euro strength and the highest residential property costs in the index, pushing Hong Kong down to fourth. London slipped to fifth, having come close to topping the rankings in 2025, as sterling tracked the dollar's trajectory and limited its relative increase against mainland European cities.
Asia Pacific Dominates; Europe Sees Steepest Regional Increase
Asia Pacific retained its status as a hub of global wealth, placing five cities among the top ten: Singapore, Hong Kong, Shanghai, Sydney, and Bangkok. Sydney posted the sharpest climb of any city this year, rising six spots to eighth, driven by a strong Australian dollar and elevated import costs for luxury goods. Even so, regional prices rose by 7.4% in dollar terms, below the global figure. Europe posted the steepest regional increase, with prices up 14.1% in dollar terms on the back of euro and Swiss franc strength. Zurich, Monaco, Paris, Milan, and Frankfurt all rose in the rankings, while Barcelona held steady.
The Middle East findings carry a caveat: data collection wrapped up before the outbreak of conflict involving Iran, so the report's snapshot does not reflect the current situation in the region. Dubai fell to 14th place, a shift the bank linked more to other cities becoming pricier than to any softening in Dubai itself, given the dirham's peg to the U.S. dollar.
Raw Material Costs and Luxury Pricing Strategies Add Pressure
Beyond currency, raw material costs also pushed prices higher. Gold has more than doubled in price since 2024, feeding through into jewelry, which rose 16.4%, and watches, up 15.5%. Luxury goods overall climbed 12.3% on average, a trend Julius Baer linked to higher input costs, skilled labor expenses, and pricing strategies from major European luxury houses that anchor prices to the euro or Swiss franc. Christian Gattiker, head of research at Julius Baer, said: "Currency, once again, is at the forefront – but it is the interaction between currencies, assets, and behavior that defines the real story."
Two-Speed Luxury Economy Emerges
A companion Lifestyle Survey of 360 HNWIs found geopolitical uncertainty weighing heavily on sentiment, with 82% to 95% of respondents across regions reporting concern. That backdrop is reshaping spending and investment decisions. Regional spending patterns have split into what Julius Baer called a two-speed luxury economy, with APAC and the Middle East significantly outspending Europe, North America, and Latin America. Europe recorded the sharpest spending pullback. Experiential purchases, particularly luxury hospitality and fine dining, remained strong everywhere, while health-related spending was one of only two categories to rise across every region, alongside leisure travel. At least a third of respondents said they had already shifted the geographic origin of some luxury purchases, and more than half said they would consider traveling internationally to buy luxury goods and sidestep tariffs, with roughly a quarter already doing so.
Investment Shifts Reflect Caution and Diversification
On the investment side, most respondents across all regions said they had adjusted portfolios in response to macroeconomic and political risk, tilting toward precious metals, geographic diversification, and higher cash holdings. APAC investors led in adaptive behavior, with 73% increasing diversification. Middle East portfolios showed a strong tilt toward alternatives and collectibles, while Europe stayed more conservative, favoring funds and wealth preservation. North America reported the most consistent financial attitudes and the strongest asset growth of any region, while Latin America sat in the middle, balancing income generation with growing interest in future trends. For advisors, these findings underscore the importance of discussing currency exposure and geopolitical risk with HNW clients, particularly as global wealth surged 10.8% in 2025, the fastest gain since 2017, according to a UBS report. Additionally, the shift toward experiences aligns with a Bain report showing wealthy clients shifting spending from goods to experiences as the global luxury market stabilizes.
