Investing

The luxury watch outperforming property in South Africa

Kirsten Minnaar • 27 September 2025

Luxury watches are emerging as a stronger, lower-barrier investment than South African property, since they deliver higher returns, easier liquidity, and fewer costs while the housing market struggles to keep pace with inflation.

While many South Africans still treat real estate as their investment holy grail, a growing number are adding luxury watches, a timeless, tangible asset to their portfolio.

Those with luxury watch investments are likely to see impressive value growth within a few short years. Notably, Rolex has seen their resale values as a share of the original purchase price climb from 87.5% in 2021 to 104.9% in 2024.

“This means they’re not just holding their value but appreciating beyond their original retail price,” said Luxity co-founder Michael Zahariev.

“Meanwhile, your property portfolio is probably losing value faster than you can say ‘bond repayment’.”

Academics are backing this up. A recent Swiss study found that luxury watches carry less risk than most traditional investments and deliver higher returns.

South Africa’s property market is struggling. Between 2019 and 2024, house prices barely crept up by 4.8%. Factoring in inflation, property values actually shrank by 0.59% each year in real terms.

In contrast, luxury goods are performing well. Trading activity in South Africa has exploded 184% since 2019, with mid-range watches alone surging 28% in the past year, according to the Clur Shopping index report.

Zahariev explained that watches offer advantages that property simply cannot. Collectors can begin building a serious watch collection from around R100,000.

Meanwhile, getting into real estate means hundreds of thousands upfront, bank approval battles, and transaction fees before even getting the keys.

Data from Property 24 shows that in 2025, the price of the average home sold was R1.18 million, although the real cost of buying a property in this price range will be much higher.

A watch can also sell within days through trusted dealers. In comparison, a house can take three to six months. Selling a home also involves many administrative burdens, including property showings and paperwork.

Watches also need servicing around once a decade. However, with property, there is constant maintenance, rates, and insurance to be paid. Things like leaking roofs and garden service.

Another upside of luxury watches is that they are portable, and an entire watch collection can fit in a safe. Property, on the other hand, ties the owner to one location and the whims of that market.

Starting a watch collection

Although luxury watches can be an excellent addition to an Zahariev warned that not every shiny watch is a golden ticket.

“Success in this space isn’t about luck; it’s about knowledge. You have to understand the brands, the specific models, and what the market is looking for.”

For aspiring watch investors, Zahariev advised focusing on the “blue-chip” brands known for holding and increasing their value, such as Rolex, Patek Philippe, and Audemars Piguet.

Even within these brands, certain models, like a Rolex “Hulk” Submariner or a Patek Philippe Nautilus, are the true standouts.

Zahariev also urged investors to think in years, not months. In order to see significant appreciation, collectors should hold their watches for at least three to five years.

He added that authenticity is everything. Since the market is flooded with fakes, collectors should always buy from a reputable dealer who can provide authentication and papers. The watch’s provenance is a key part of its value.

With inflation at 3.5% and interest rates beginning to normalise, both asset classes are competing for investor attention.

“We’re not suggesting people abandon property investment,” Zahariev added. “But for portfolio diversification, luxury watches offer attractive returns with significantly lower barriers to entry.”