Luxury watches – a timeless investment in South Africa

The demand for high-end goods in South Africa remains undiminished.

This is according to the seventh annual State of the Luxury Market in Africa by Luxity.

Luxity co-founder Michael Zahariev said that economic pressures like weak GDP growth and steep inflation levels lead to a decline in luxury spending.

“In other regions, such as China, demand has softened to mid-single-digit growth. As a result, brands including Balenciaga and Versace are offering unprecedented discounts to win back consumers and counter sluggish sales,” said Zahariev.

The trend is also seen globally, with luxury goods sales anticipated to slow to between 2% and 4% this year compared to stronger growth in prior years.

“In contrast, however, the report finds that there has been a sustained, resilient demand for luxury goods among African consumers,” said Zahariev.  

The report shows that South Africa leads the continent’s luxury market, which boasts the highest number of luxury stores.

High-end shopping experiences continue to thrive, with big malls like Sandton City seeing an increased luxury segment turnover. Liberty Two Degrees (L2D) said that luxury segment turnover increased from 12.5% in 2025 to 19% this year.

Zahariev added that the pre-owned luxury segment has also maintained its growth trajectory, with strong stores in-store and online.

“Local demand has remained strong as we continue to see a rise in market adoption for the luxury pre-owned sector. Overall, we are estimating a 30% increase in growth for the year – far exceeding growth in the new products segment.” 

South Africa is home to the most high-net-worth individuals in Africa and is set to see a strengthening market sentiment, which could boost the luxury market.

Another factor aiding the African luxury market is accessibility, with the report showing a strong performance of mid-range watches, which have seen a 28% increase in sales.

“This interest in accessible luxury is also sparking growth in the pre-owned market, with consumers looking for high-end options at more affordable price points,” said Zahariev. 

“Signs of brand fatigue are emerging, with shifting consumer loyalty suggesting a more dynamic market, as people become more open to investing in a broader selection of brands.”

“This shift is evident, with Hermès rising to number one on the report’s top five brands list, a position previously dominated by Louis Vuitton and Chanel.” 

He added that resale value is an important gauge of a brand’s appeal.

“Pre-owned goods that command prices nearing those of new items demonstrate higher investment potential and stronger consumer interest,” said Zahariev.

“A pre-owned Rolex, for instance, resells at 104.9% of its retail price, suggesting that consumers on the continent are increasingly willing to pay more for luxury items.”

Moreover, local brands are starting to establish themselves against their global counterparts.

Browns, which resells at 66% of its retail price – is slightly below underperforming market leader, Cartier which has a resale value of 74%. 

Cartier is notably part of the Richemont group, which was created by South Africa’s richest man Johann Rupert.

Opportunity for investors 

“While global luxury sales are predicted to remain modest in 2025, Africa’s luxury market tells a different story. New brands will be entering the continent, and retail investments in luxury will continue expanding,” said Zahariev.

“The pre-owned market is also expected to grow rapidly, aided by anticipated price adjustments from designers and stronger local currencies like the Rand, which will enable more Africans to participate.”

“All told, this will see the continent’s luxury market share rise, positioning it as an increasingly attractive opportunity for luxury investors.”

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