The Julius Baer Global Wealth and Lifestyle Report 2026 offers a fascinating glimpse into the complex world of high-net-worth individuals (HNWIs) and their evolving priorities. This year's report, published amidst a tumultuous global landscape, highlights the impact of geopolitical volatility, currency fluctuations, and inflation on the cost of living for the wealthy. It's a must-read for anyone interested in the intersection of finance, lifestyle, and global trends.
One of the most striking findings is the significant rise in the cost of maintaining a premium standard of living, up 10.2% on average in US dollar terms. However, this figure is a mere snapshot of a more complex story. The report reveals that much of this increase is driven by currency movements rather than local price inflation. Cities linked to appreciating currencies, such as the Swiss franc and the euro, have climbed the rankings, while those tied to the US dollar have lost ground. This dynamic highlights the importance of currency in shaping the purchasing power of HNWIs.
The report's ranking of cities is based on the Julius Baer Lifestyle Index, which analyzes the cost of a basket of 20 goods and services in 25 global cities. Singapore remains the most expensive city for HNWIs for the fourth consecutive year, despite relatively muted local price changes. The city's strong currency and high costs of residential property and cars contribute to its position. Zurich rises to the second most expensive city, driven by the appreciation of the Swiss franc. Monaco enters the top three for the first time, supported by the euro's strength and high residential property prices.
The Asia Pacific region continues to be a powerhouse of global affluence, with five cities in the top ten. Sydney is this year's highest climber, rising six places to eighth, driven by the strong Australian dollar and the elevated cost of importing premium goods. Europe remains one of the most expensive regions, with price increases averaging 14.1% in US dollar terms, largely due to the strength of the euro and Swiss franc. London, by contrast, fell to fifth place as the British pound followed a similar trajectory to the US dollar.
The Middle East region's narrative is more about context than findings. Dubai slips to 14th place, explained by other cities becoming more expensive rather than Dubai becoming more affordable. The dirham's peg to the US dollar has had a significant impact on the city's positioning. The Americas region is also notable, with no city in the global top ten for the first time in three years. New York remains the highest-ranked city, followed by São Paulo, which rose to 12th place. Santiago de Chile and Mexico City also climbed, supported by strong local price growth and currency movements.
Beyond currency, the report highlights the impact of raw material costs, particularly the price of gold, which has more than doubled since 2024. This has fed through into luxury goods categories such as jewellery and watches, with prices rising by 16.4% and 15.5%, respectively. Luxury goods prices have risen across the board, with an average increase of 12.3%, reflecting higher input costs, skilled labour, and strategic pricing by global luxury brands. Many luxury houses are based in Europe and anchor their pricing in stronger currencies, further influencing global retail prices.
The report's Lifestyle Survey provides further insights into the lives and consumption trends of HNWIs. Geopolitical uncertainty has become a near-universal concern, influencing spending, planning, and investment. The survey reveals a pronounced two-speed luxury economy, with spending in APAC and the Middle East significantly outpacing Europe, North America, and Latin America. Experiential spending continues to dominate, led by luxury hospitality and premium dining. Health-related expenditure has also surged, confirming the 'health is wealth' trend.
HNWIs are adapting their consumption behaviour in response to tariffs, currency movements, and global uncertainty. At least one in three respondents have changed the geographic origin of their luxury purchases, and more than half would consider international travel to bypass tariffs. Investment behaviour has also shifted, with the vast majority modifying portfolios to address rising macroeconomic and political risks. APAC investors lead in adaptive behaviour, with 73% increasing diversification, including precious metals and geographic spread.
In conclusion, the Julius Baer Global Wealth and Lifestyle Report 2026 offers a comprehensive and insightful look at the world of HNWIs. It highlights the impact of currency, geopolitical volatility, and economic trends on the cost of living and lifestyle choices. As the report underscores, wealth today extends beyond financial assets, encompassing lifestyle, security, health, mobility, and intergenerational harmony. It's a thought-provoking read that provides valuable insights for investors, financial advisors, and anyone interested in the complex relationship between wealth and lifestyle.
