Cagau: The best luxury watches to invest in for aspiring collectors

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As of 2021, the global luxury watch market is valued at over USD 7bn and has grown over 10x during the past decade. On the other hand, the pre-owned luxury watch market is estimated to be worth over USD 5bn in annual sales and has seen a huge growth in recent years. It’s believed that this growth pattern has primarily uprooted from a change of perception, where many, especially collectors, are viewing luxury watches as an investment rather than a mere status symbol. 

Upon asking the best luxury watches to invest in for aspiring collectors, Jay Barker, the Founder and CEO of Cagau, a leading luxury watch customization firm in Dubai said, “Currently, Patek Philippe, Richard Mille, and Audemars Piguet, in addition to the most recognizable Rolex, are synonymous with luxury in the watch world and make for reliable long-term investment- both for your style and finances.” 

Jay reiterates that these four brands are ideal luxury watches to invest in for two main reasons: craftsmanship and rarity. Addressing craftsmanship, Barker said, “These luxury watches have been renowned for their precision engineering, and this is a fact that cannot be ruled out even in decades to come. On the other hand, all these brands entail a very high in-house development cost in design and craftsmanship. Even the materials used in the actual construction are rare and expensive, which justifies their high prices and asset value, making them solid investment choices for aspiring collectors.” 

He also added that, even in the booming industry of luxury watch customization, these exceptional luxury watch brands take a prominent name. This is primarily because these brands feature designs that offer numerous opportunities for collectors to experiment their personal style, while retaining or even increasing the watch value, especially with customizations like diamond-setting.

Referring to the rarity of these brands and how it affects investment value, Barker also mentioned that these luxury watches are controlled by families and are not mass-produced, thus making them extremely limited in supply. He believes this is the sole reason why the demand for these watches keeps rising, and prices remain stable or even continue to grow, especially in the pre-owned market, than the price they were initially bought.

He continued, “If you have observed, over the past few months, there has been a huge surge in the demand and price of the soon-to-be-retired luxury watch models such as the Patek Philippe Nautilus Ref. 5711, the Audemars Piguet Royal Oak Jumbo Ref. 15202ST, and the Rolex Explorer II 216570. There is even a spike in demand and value for these models in the secondary market because collectors want to get their hands on these unique pieces that will never be seen again.” 

According to  Barker, this demand and price pattern has been consistent for all the notable luxury watch brands such as  Richard Mille, Audemars Piguet and Patek Philippe, in addition to Rolex, over the past decade- especially for their limited editions. As such, even while historically analysing the performance of these four watch brands in the primary and pre-owned luxury watch market, it’s assured that they indicate a promising ROI for aspiring collectors.

“At Cagau, we encourage our customers to buy what they love and something that reflects their persona in a way that can be enjoyed as intended, and not what will be the ‘best investment.’ However, if collectors want to protect their investment, then it’s best to opt for these luxury watches; Rolex, Patek Philippe, Richard Mille, and Audemars Piguet and buy something as original as possible”.