Investment & Guides
Are Luxury Watches a Good Investment in 2026?
The short answer
Sometimes. As an asset class, luxury watches returned about 125% over the last decade per Knight Frank, and the market recovered in 2025 — the Bloomberg Subdial Index rose 8% and the broad WatchCharts market about 5%. But gains are highly concentrated: a handful of Rolex, Patek and AP references appreciate while most watches lose 20–50% of value at purchase. Buy the icons, in full-set condition, and treat a watch as a store of value rather than a get-rich scheme.
"Are watches a good investment?" is the wrong question. The right one is "which watches, and at what price?" — because the averages hide enormous variation. Here is what the data actually says in 2026.
How have watches performed as an asset?
Over the long run, well. Knight Frank's Luxury Investment Index has watches up strongly over the past decade — the asset class returned roughly 125% over ten years in its 2025 reading, second only to fine wine among luxury collectibles. After two down years, the index stabilised in 2025, closing essentially flat (down just 0.4%) (Knight Frank, 2026).
Did the watch market recover in 2025?
Yes. The Bloomberg Subdial Watch Index — the 50 most-traded watches by value — gained 8% in 2025, its best stretch since early 2022, and the broader WatchCharts market rose about 5.1% on the year (Bloomberg; Knight Frank). The froth of 2021–22 is gone, but the floor has held and the icons are climbing again.
Why are gains so concentrated?
Because scarcity and brand power are not evenly distributed. Four privately-owned makers — Rolex, Patek Philippe, Audemars Piguet and Richard Mille — capture roughly 76% of the industry's profit pool (Morgan Stanley). And the very top of the market does the heavy lifting: watches priced above $64,500 were just 1.4% of volume but 37% of export value and an extraordinary 89% of total market growth in 2025 (Morgan Stanley).
“The KFLII closed 2025 down just 0.4%, marking a year of stabilisation after two years of losses.”
— Knight Frank, Wealth Report 2026
But most watches still depreciate
This is the part the hype skips. Most luxury watches lose 20–50% of their value the moment they leave the boutique. Strong value retention is the exception — concentrated in hard-to-get steel sports models and blue-chip complications — not the rule. If you buy a watch expecting it to appreciate, buy an icon; if you buy anything else, buy it because you love it.
How to buy for value (without overpaying)
- Stick to the icons: Rolex steel sports, Patek Nautilus/Aquanaut, AP Royal Oak.
- Insist on full-set: box, papers and warranty add roughly 10–30% to resale.
- Mind condition: unworn and unpolished pieces command the strongest prices.
- Don't chase tops: buy on fundamentals, not 2021-style speculation.
See which value-retentive icons are in stock now.
Browse investment-grade watchesFrequently asked questions
- Are luxury watches a good investment in 2026?
- Selectively. Top Rolex, Patek and AP references hold or grow value, and the market rose ~5–8% in 2025, but most watches depreciate 20–50%.
- Did watch prices recover in 2025?
- Yes — the Bloomberg Subdial Index rose 8% and the broad WatchCharts market about 5.1% over the year.
- Which watches hold value best?
- Hard-to-get steel sports Rolex (Submariner, Daytona, GMT-Master II) and Patek/AP icons like the Nautilus, Aquanaut and Royal Oak.
- Do box and papers matter for value?
- Yes — a full set typically adds about 10–30% to resale value versus watch-only.
Sources
Julian Vossen
Horology & Crypto-Payments Editor, SatoWatch
Julian Vossen has covered the secondary watch market and crypto payments since 2017. He writes SatoWatch's buying and authentication guides, drawing on market data from WatchCharts, Chrono24, Knight Frank and Morgan Stanley.