Summary of this article
Luxury prices surged as wellness spending grows sharply.
Experiences beat objects as wealthy chase unique memories.
Branded residences rise fast as long-term wealth assets.
Kotak Private Banking has published the Kotak Private Luxury Index, an index of price changes across 12 types of luxury goods and services. This index tracks how ultra-high-net-worth individuals are spending, living, and investing in 2025. It also reflects a wider shift in what luxury means as the market moves toward an expected $85 billion by 2030.
Luxury Prices Rise Since 2022
The index reached 122 in 2025. This represents a 22 per cent increase in the price of luxury since 2022. Many luxury categories have grown more strongly than major stock indices, which suggests that spending at the top end remains strong.
Wellness Becomes A Core Priority
Wellness retreats and healing-focused travel have seen the sharpest rise. Destinations such as Amanbagh and Ananda In The Himalayas pushed wellness prices up by 14.3 per cent a year. Long life, rest and mental well-being are becoming key signs of wealth.
Experiences in High Demand
Exclusive experiences surged 11.6 per cent annually. High spenders are opting for activities such as Antarctic trips, Michelin-star meals, and customised travel plans. The trend now suggests that people want memories and unique moments rather than new objects.
Branded Homes Gain Value
Branded and tech-enabled residences grew 10.8 per cent a year. These homes are seen as long-term assets that denote both financial strength and personal style. Prime property continues to be a major store of wealth.
Fashion Holds Steady with Some Shifts
Spending on designer handbags rose 10.2 per cent a year, driven by limited supply and strong demand, while prices of luxury watches and fine wines fell slightly. It highlights that even the most popular luxury items go through cycles.
Education Seen As A Legacy Investment
Fees among the world's top universities rose 8.4 per cent a year. For families, it's now both a luxury category and a long-term investment in the next generation.
How The Index Works
The index tracks annual changes in prices across 12 categories of luxury goods. Each category is weighted according to how much ultra-wealthy people spend on it, how well it retains value and the category's size. The base year is 2022; that year was chosen as the first stable year after the pandemic.
The categories include: prime real estate, luxury cars, fine jewellery, designer handbags and shoes, luxury watches, fine art, exclusive experiences, wellness, elite education, fine wines and rare whisky, and luxury travel.
