Why Luxury Watches Are Getting Cheaper in 2025 (Expert Analysis)

Luxury watch prices are experiencing an unexpected downward trend as we enter 2025, but this shift comes with important nuances you should understand before making any purchasing decisions. According to a Boston Consulting Group study, nearly 95% of rare and collectible limited edition watches are no longer in production, creating a fascinating dynamic in the market.

While the secondary luxury watch market peaked during March 2022, prices still remain higher than pre-COVID levels, indicating sustained interest despite the current correction. The global pre-owned watch market is projected to reach approximately $43.65 billion by the end of the decade, up from about $26.83 billion in 2024. This growth reflects changing consumer behaviors, particularly among younger buyers, as 54% of Gen Z and younger millennials increased their spending on high-end timepieces from 2021 to 2023.

If you're considering investing in a timepiece or expanding your collection, understanding these market shifts can help you make more informed decisions. This article examines why prices are falling, how supply and demand are changing, and what opportunities exist for savvy buyers in 2025.

What’s happening in the luxury watch market in 2025

The luxury watch landscape is undergoing significant changes in 2025, with market data revealing surprising shifts that seasoned collectors and newcomers alike should understand. After years of inflated prices, many premium timepieces are experiencing their first substantial price correction since the pandemic began.

Luxury watch prices are falling — but not everywhere

The market is witnessing a noticeable decline in prices for many luxury watches. Rolex models, once commanding 30-40% premiums above retail in the secondary market, have experienced average price drops of 21% since their peak. Furthermore, Patek Philippe's sought-after models have seen declines of up to 25% in the gray market.

However, this correction isn't uniform across the industry. In fact, certain categories are bucking the downward trend:

• Heritage brands with limited production (F.P. Journe, Philippe Dufour)
• True vintage collector pieces in excellent condition
• Special collaborations and genuinely limited editions

Richard Mille and Audemars Piguet Royal Oak models have maintained stronger pricing than mass-produced luxury pieces, highlighting how exclusivity continues to command premium pricing. Meanwhile, entry-level luxury watches from brands like TAG Heuer and Omega have seen more modest price adjustments of 8-12% on average.

The role of the pre-owned watch market

The pre-owned sector has evolved from a niche interest to a major market force. In 2025, the secondary market for luxury timepieces is projected to reach $32 billion globally, representing over 40% of the total luxury watch market. This rapid expansion has fundamentally altered how pricing works throughout the industry.

Online platforms specializing in pre-owned watches have increased price transparency, allowing buyers to compare values across regions and sellers instantly. Consequently, the artificial scarcity that once drove prices upward has diminished as consumers can now easily source desirable models internationally.

At the same time, auction houses report that truly rare pieces continue setting records, with recent sales of vintage Patek Philippe and rare Rolex models achieving prices 15-20% higher than similar examples sold just two years ago. This bifurcation demonstrates how the market is becoming increasingly sophisticated in distinguishing between merely expensive watches and genuinely collectible timepieces.

How the pandemic boom is correcting

The luxury watch bubble that formed during 2020-2022 is now undergoing a natural correction. During peak pandemic years, Rolex Daytona models were selling for up to 300% of their retail price, while now they've settled at approximately 150-170% of retail—still premium pricing, but substantially reduced.

Several factors are driving this adjustment. Interest rates have risen significantly, making speculative buying less attractive. Additionally, cryptocurrency volatility has reduced the purchasing power of a segment of buyers who fueled part of the pandemic-era boom.

Supply chain disruptions that once limited production have largely resolved, allowing manufacturers to increase output and better meet demand. Notably, brands like Rolex have reportedly increased production by an estimated 15-20% compared to pre-pandemic levels.

Economic uncertainty has also played a role, with luxury spending surveys indicating that 38% of high-net-worth individuals plan to reduce discretionary purchases in 2025 compared to previous years.

This correction doesn't signal a market collapse but rather a healthier equilibrium between retail and secondary markets. For most luxury watch enthusiasts, this represents a welcome return to more rational pricing after years of inflated values.

Why supply and demand are shifting

The fundamental dynamics of the luxury watch market are shifting dramatically in 2025. After years of scarcity-driven demand, the pendulum is swinging back as both supply and demand forces undergo significant realignment. This transformation reveals deeper changes in how timepieces are made, sold, and valued.

More watches entering the used market

The secondary market for luxury timepieces is experiencing unprecedented inventory growth. Indeed, dealer inventories of popular brands have increased substantially—the median age of Rolex watches advertised on the secondary market has increased by 25%, while Patek Philippe inventory has grown by a staggering 46%, and Audemars Piguet inventory by 25% ^[1]. This aging inventory represents a fundamental shift in the market's absorption capacity.

Many luxury watches now remain on the market substantially longer before selling, with the median age of inventory near three-year highs—more than four times the level from just two years ago ^[1]. As a result, dealers must now work through this substantial backlog before prices can stabilize or recover.

The pre-owned luxury watch market, once a niche segment, has evolved into a major force projected to reach approximately $30 billion by 2025 ^[2]. This expansion has been fueled by changing consumer preferences, especially among younger buyers who increasingly view pre-owned timepieces as both sustainable alternatives and opportunities to acquire unique designs no longer in production.

Luxury watch brands increasing production

Simultaneously, major luxury watch manufacturers have significantly ramped up their output. Rolex produced approximately 1.24 million timepieces in 2023, representing an increase of more than 10% in production output ^[3]. The brand plans further expansion with a new manufacturing facility in Bulle later this decade.

Similarly, other prestigious brands have boosted their production:

• Audemars Piguet manufactured 51,000 watches in 2023, up from 45,000 the previous year—a 6,000-unit increase ^[3]
• Patek Philippe achieved a personal best with 70,000 units sold ^[3]

Despite this increased production, Swiss watch exports as a whole fell by 2.8% in 2024 compared to 2023 totals, amounting to approximately $29.5 billion ^[4]. More concerning for the industry, the total volume of Swiss watch exports dropped to 15.3 million watches in 2024, representing a 9.4% decline from the prior year ^[4].

This production increase by top-tier brands amid an overall industry contraction indicates a growing concentration of market share among elite manufacturers. The "Big Four" brands—Rolex, Audemars Piguet, Patek Philippe, and Richard Mille—now account for a remarkable 47% of the Swiss watch market ^[4].

Fewer buyers on waitlists

Perhaps most tellingly, the notorious waitlists for coveted luxury timepieces are shortening considerably. For sought-after models like the Rolex Submariner and GMT Master II, wait times have decreased to approximately 60 and 90 days respectively ^[5], a dramatic reduction from the multi-year waits common during the pandemic era.

This shortening of waitlists reflects changing market conditions rather than increased availability alone. Economic uncertainty has prompted many potential buyers to postpone large discretionary purchases. Moreover, as resale premiums shrink and inventory on resale sites rises, speculative buying has decreased substantially ^[5].

The WatchCharts Overall Market Index, which tracks secondary market prices of 60 watches from top luxury brands, shows prices have fallen roughly 40% from their 2022 peak ^[1]. The index reached its high near $48,000 before declining to $29,368 recently, marking eight consecutive quarters of decline ^[1].

Overall, these shifting supply and demand forces present both challenges and opportunities. For established collectors, the cooling market offers improved access to previously unattainable pieces. For brands, this transition period necessitates new strategies to maintain desirability without relying solely on artificial scarcity. Most importantly, the market is moving toward a more sustainable equilibrium where value is increasingly tied to craftsmanship and heritage rather than speculation and hype.

The impact of Gen Z and millennial buyers

Young buyers are reshaping the luxury watch landscape with spending habits that have surprised industry veterans. Unlike their predecessors, Generation Z and millennials approach timepieces with distinct preferences and purchasing behaviors that are changing the market's dynamics.

Changing preferences in luxury watch for women and men

Generation Z buyers are making unexpected waves in the luxury watch sector, with their average spending on timepieces reaching a remarkable $10,870 ^[6], nearly double what millennials spend on watches. Contrary to assumptions about younger buyers, 41% of Gen Z acquired a luxury watch in the past year alone ^[7].

Their taste leans toward prestigious heritage brands, with Rolex topping their wishlist (58%), followed by Omega (44%), Tag Heuer (39%), and Cartier (29%) ^[8]. Stylistically, they gravitate toward fashion-forward models (36%), minimalist dress watches (27%), and vintage pieces from the '90s (26%) ^[7].

Interestingly, 61% of Gen Z agree that a watch's status symbol value matters more than its timekeeping function ^[7]. This shift in perspective has led luxury brands to reconsider their design briefs, with smaller case sizes and versatile styling becoming increasingly important.

Rise of affordable luxury watch brands

Although Gen Z pursues prestigious brands, affordability remains a key consideration. Approximately 60% believe rising costs make new luxury timepieces unattainable ^[8]. Subsequently, this generation has embraced alternative purchasing methods:

• 21% more likely to use financing options than older generations
• 49% more likely to sell something before buying a watch
• 130% more likely to have taken out a loan for a timepiece ^[7]

This pragmatic approach has fueled the growth of the pre-owned sector, with over 80% of Gen Z purchasing their first luxury watch pre-owned ^[8]. Primary motivation? Affordability (58%), yet access to discontinued and unique pieces (22%) plays a significant role too.

Social media and resale culture

Social media has fundamentally transformed how younger consumers discover and interact with luxury watches. Primarily, platforms like Instagram (47%), TikTok (46%), and YouTube (29%) serve as key discovery channels ^[7]. These digital spaces have democratized access to watch knowledge and communities that were once exclusive.

"Watchfluencers" and social trends drive purchasing decisions, with 55% of Gen Z citing social media content creators as their most important source of watch recommendations ^[7]. This online ecosystem has fostered a "watch flipping" culture, where 36% of Gen Z report having bought and resold watches for profit ^[7].

Sotheby's reports that 30% of its watch sales last year went to buyers aged 30 and under ^[9], evidencing this generational shift. Ultimately, these younger buyers aren't just changing who buys luxury watches—they're redefining what these timepieces represent in contemporary culture.

How brand strategies are evolving

Luxury watch manufacturers are swiftly adapting their business models in 2025, implementing innovative strategies to maintain relevance in a changing market. These strategic pivots reflect both the industry's resilience and its recognition of evolving consumer preferences.

Certified pre-owned programs by luxury watch brands

Major brands have formally entered the secondary market through certified pre-owned (CPO) programs. Rolex leads with its RCPO program, which authenticates watches at least two years old sold through Official Jewelers displaying special RCPO plaques ^[10]. Each timepiece undergoes meticulous verification of every component, guaranteeing authenticity and providing a two-year international warranty ^[11]. Likewise, The 1916 Company thoroughly examines pre-owned watches—evaluating movement performance, case structure, and dial originality—before adding them to inventory ^[12]. These programs represent a marked shift as luxury brands seek to capture value from the thriving secondary market instead of leaving it entirely to third-party resellers.

Direct-to-consumer vs. retail pricing

The traditional distribution model is undergoing a fundamental transformation. Historically, multi-brand retailers funded the growth of luxury watch brands through investment and promotion ^[13]. Nevertheless, many brands now prioritize direct-to-consumer sales, limiting availability of their most desirable products by designating them "boutique only" ^[13]. This strategy creates an uneven playing field where retailers struggle with increasing Customer Acquisition Costs (CAC) and diminishing Lifetime Customer Value (LTV) ^[13]. Yet some industry experts argue there's sufficient room for both retail forms to coexist successfully, suggesting products should be available through all channels to benefit the entire industry ^[13].

Entry-level models and pricing adjustments

Watch pricing structures remain remarkably intricate, with many brands offering over 150 distinct price points ^[14]. Various brands employ different pricing philosophies:

• Incremental Growth: Cartier, Rolex, and Jaeger-LeCoultre emphasize lower entry points with small price increments, particularly under CHF 100K ^[14]
• Moderate Steps: Piaget and Hublot employ larger price jumps between models ^[14]
• Luxury Differentiation: Audemars Piguet and Patek Philippe diverge significantly at higher tiers compared to Breguet and Vacheron Constantin ^[14]

Currently, the pre-owned market offers compelling value, enabling access to timepieces that would exceed budget when purchased new ^[15]. This secondary market has become essential for both newcomers and experienced collectors seeking value in the luxury watch segment.

What this means for buyers and collectors

The shifting luxury watch market creates tangible opportunities for savvy buyers in 2025. Whether you're a first-time purchaser or seasoned collector, current conditions offer advantages worth exploring.

Best entry level luxury watch options in 2025

For newcomers to luxury timepieces, several compelling entry points exist. The "base-model" Rolex Oyster Perpetual provides a no-frills introduction to the brand, with entry-level investment pieces typically starting around €5,000–€7,000 ^[16]. The Omega Speedmaster Professional represents another excellent starting point at similar price points, offering proven value retention with iconic design heritage.

Vintage enthusiasts should consider the Rolex Datejust (1970s–1980s models) ranging from €3,500–€5,500, which shows consistently strong search popularity and demand ^[17]. Alternatively, the Cartier Tank Must de Cartier (1970s–1990s) offers instant class at a more accessible €1,200–€2,200 price point ^[17].

How to spot value in the used watch market

The secondhand market has evolved from back-alley deals to a transparent ecosystem fueled by online information sharing and authentication services ^[18]. When evaluating pre-owned pieces, focus on:

• Condition – Original finish and minimal polishing are paramount for value preservation ^[19]
• Documentation – Original boxes, papers, and accessories can add 15-30% to resale price ^[20]
• Authenticity – Genuine luxury watches feel substantial due to high-quality materials ^[21]

The presence of original parts particularly enhances value for vintage watches, as does complete service history documentation ^[22].

Should you buy now or wait?

Current market conditions present a unique window—prices have stabilized but haven't returned to previous highs ^[23]. For shoppers seeking deals, this represents a rare opportunity, especially as the pre-owned luxury watch market is projected to reach approximately $43.65 billion by decade's end ^[23].

Most investment-grade watches perform best with a 3–7 year holding period ^[16], making 2025 potentially advantageous for long-term collectors. Pre-owned watches often deliver better returns than new purchases, particularly for discontinued models ^[16].

Given these market dynamics, buyers looking for both enjoyment and potential appreciation would be wise to act while prices remain accessible, focusing on models with strong brand heritage and limited production numbers.

Conclusion

The Future of Luxury Watches: Opportunity Meets Tradition

Luxury watch prices have undoubtedly entered a correction phase after their pandemic-era surge. Nevertheless, this market adjustment represents a healthy realignment rather than a collapse. The fundamentals remain strong, with the global pre-owned watch market projected to reach $43.65 billion by the end of the decade.

Though prices have declined significantly from their peaks, certain categories continue to thrive. Heritage brands with limited production, vintage collector pieces, and genuine limited editions maintain their value due to their inherent scarcity and craftsmanship. This bifurcation demonstrates how the market increasingly distinguishes between mass-produced luxury and truly collectible timepieces.

Young buyers, particularly Gen Z, have emerged as surprising forces in the luxury watch market. Despite assumptions about their spending habits, these consumers invest heavily in timepieces, albeit through different channels and with distinct preferences compared to previous generations.

Brands have adapted accordingly, launching certified pre-owned programs, adjusting pricing strategies, and embracing direct-to-consumer models. These changes reflect the industry's resilience and ability to evolve with consumer demands.

For you as a buyer or collector, the current market presents a remarkable opportunity. Prices have stabilized without returning to previous highs, creating an ideal entry point for both first-time purchasers and experienced collectors looking to expand their collections.

Consider acting now rather than waiting. Models with strong brand heritage and limited production numbers offer both enjoyment and potential appreciation, especially with a 3-7 year holding period. Additionally, the secondary market provides exceptional value for discontinued pieces that command premium prices.

The luxury watch market ultimately follows cycles of expansion and contraction. During this correction phase, you can benefit from increased availability and more reasonable pricing while still investing in timepieces that may appreciate substantially over time. Whether collecting for passion or investment, 2025 offers a balanced market where truly exceptional watches remain highly valued, while artificially inflated prices continue their return to reality.

FAQs

Q1. Are luxury watch prices expected to decrease in 2025? Yes, many luxury watch prices are experiencing a downward trend in 2025. Popular models from brands like Rolex have seen average price drops of 21% since their peak. However, this correction isn't uniform across the industry, with certain categories like heritage brands and limited editions maintaining stronger pricing.

Q2. What factors are contributing to the changing luxury watch market? Several factors are influencing the market, including increased production by major brands, a growing pre-owned market, economic uncertainty, and changing consumer preferences. The resolution of supply chain disruptions and a correction from the pandemic-era boom are also playing significant roles.

Q3. How are younger generations impacting the luxury watch industry? Gen Z and millennials are reshaping the market with distinct preferences and purchasing behaviors. They're more likely to buy pre-owned watches, use financing options, and value a watch's status symbol over its timekeeping function. Social media also plays a crucial role in their discovery and purchasing decisions.

Q4. What strategies are luxury watch brands adopting in response to market changes? Brands are implementing certified pre-owned programs, adjusting their pricing strategies, and focusing more on direct-to-consumer sales. Many are also introducing entry-level models and making pricing adjustments to appeal to a broader range of consumers.

Q5. Is 2025 a good time to invest in luxury watches? For many buyers, 2025 presents a unique opportunity. Prices have stabilized but haven't returned to previous highs, creating an ideal entry point for both new purchasers and experienced collectors. However, it's important to focus on models with strong brand heritage and limited production numbers for potential long-term appreciation.

References

[1] - https://www.forbes.com/sites/garthfriesen/2024/05/01/falling-luxury-watch-prices-time-to-buy/
[2] - https://www.chubb.com/us-en/individuals-families/resources/trends-and-insights-into-the-rising-demand-for-luxury-watches.html
[3] - https://thehourmarkers.com/articles/scarcity-principle-at-work-in-the-watch-industry-driving-demand-sales-and-exclusivity
[4] - https://www.nytimes.com/2025/03/31/fashion/watches-billion-dollar-brands-rolex.html
[5] - https://www.styxwatch.com/blogs/news/rolex-waitlists-shorten-as-market-dynamics-shift?srsltid=AfmBOopve5Vr6hikxtj9ZagjDFfc93fay0oN0ta4OADrVjLWmOihG7dT
[6] - https://robbreport.com/style/watch-collector/gen-z-watch-spending-is-off-the-charts-1235593147/
[7] - https://southernjewelrynews.com/latest-news/other-news/new-report-by-watchfinder-co-finds-gen-z-hungry-for-luxury-watches/
[8] - https://fashionunited.nz/news/fashion/gen-z-redefining-luxury-watch-trends/2024120235232
[9] - https://fortune.com/2024/02/03/gen-z-watches-rolex-luxury-instagram-mob-wife-influencer-watchfluencer/
[10] - https://www.rolex.com/en-us/buying-a-rolex/rolex-certified-pre-owned
[11] - https://www.mayors.com/c/rolex-certified-pre-owned/watches
[12] - https://www.the1916company.com/pre-owned/?srsltid=AfmBOopMGWRDF4IrbXuWmtENCe-jIeNsrUdvNp92QUrhunmDE9yBzWEk
[13] - https://usa.watchpro.com/direct-to-consumer-retail-undermines-lifetime-customer-value-for-watch-brands/
[14] - https://carrara-advisory.com/blog/from-design-to-price-how-watch-brands-shape-their-value
[15] - https://www.swisswatchexpo.com/thewatchclub/2025/06/13/luxury-watches-under-5000-for-2025/?srsltid=AfmBOopq7QoGiT3gjkAU_0_PTvI0BnhLNaT3_j0WjJDWD00-ZAokrmcN
[16] - https://theluxuryplaybook.com/how-to-invest-in-luxury-watches/
[17] - https://debonarwatches.com/blogs/watches/top-5-affordable-vintage-luxury-watches-to-buy-in-2025?srsltid=AfmBOoq0jfxs_BF_VV97giQXGb4Qnd6r9d8YrnS-X_yosZvm9FH277oa
[18] - https://www.bcg.com/publications/2023/luxury-watch-market-trends
[19] - https://www.swisswatchexpo.com/thewatchclub/2024/12/24/6-luxury-watch-trends-to-look-for-in-2025/?srsltid=AfmBOorlrtpEvaOpRnxNqjgu9zpG3BEYeQliEiUFs4wcJurTqGN8h8wp
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[21] - https://realstyle.therealreal.com/sell-watches-best-resale-value/
[22] - https://www.moneyforwatches.co.uk/blog/understanding-the-second-hand-luxury-watch-market/
[23] - https://www.thestreet.com/retail/why-now-may-be-the-best-time-to-buy-a-luxury-watch