Property Valuation
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Luxury item
Do you own valuable items and wonder what they are really worth? Many owners underestimate the complexity of appraising luxury items, which can lead to losing real money. This article provides you with the essential data and strategies to accurately determine the value of your collectibles and avoid pitfalls.
With access to Google, BORIS, and Deep Research.
The global market for personal luxury goods saw a slight decline of 2% in 2024, making an accurate assessment essential for owners.
The value of a luxury item is determined by brand, rarity, condition, and provenance; original certificates can increase the value by up to 20%.
In Germany, profits from the sale of luxury goods are tax-free after a holding period of one year; there is a tax-free allowance of 1,000 euros.
The emotional attachment to an inherited watch or a rare handbag is often priceless. But what is their financial value in a constantly changing market? The global market for personal luxury goods experienced a slight contraction of about 2% in 2024, to a volume of 363 billion euros. For owners, this means that an accurate, data-driven valuation is more important than ever. Without objective criteria, you risk misjudging the value of your luxury items—whether for sale, insurance, or wealth management. This guide shows you how to proceed systematically to prevent financial disadvantages and to fully realise the potential of your valuables.
The luxury goods market is showing a nuanced development after years of boom. Total sales in Germany reached an impressive 15.3 billion euros in 2023, but global forecasts for 2025 indicate only modest growth between 0% and 4%. This stagnation is forcing brands and owners to reassess the value of luxury items. Only about a third of luxury brands achieved any growth in 2024.
At the same time, consumer priorities are shifting. The trend is moving away from pure product ownership towards exclusive experiences, as evidenced by a growing demand for luxury travel and gastronomy. For physical goods, this means that only objects with outstanding quality and a verified history achieve stable prices. A professional market analysis for the luxury market is therefore the basis of every sales decision. This changed dynamic highlights the necessity of not grounding the value of one's objects on outdated assumptions.
What makes a luxury item valuable? The price is determined by a combination of objectively measurable and subjective factors. The five key value drivers are brand, rarity, condition, provenance (history of origin), and current market demand. A watch from Rolex or Patek Philippe achieves a base value of several thousand euros just through the brand name.
When it comes to detailed assessment, hard facts count. Here is an overview of the decisive criteria:
Authenticity: Original certificates and purchase receipts can increase the value by 10-20%.
Condition: Even minimal scratches can reduce the resale value of a luxury watch by over 15%.
Completeness: The presence of original packaging and all papers is a clear value add of up to 25%.
Repair history: Repairs with original parts maintain the value, while foreign parts can significantly reduce it.
Limitation: A handbag model limited to 100 pieces is naturally more valuable than a mass-produced product.
These factors show why a superficial estimate often leads to incorrect results. An in-depth luxury goods appraisal systematically analyses each of these points. This turns a supposition into a reliable figure that serves as a basis for further steps.
The market for counterfeit luxury goods is a billion-dollar industry and poses a significant threat to owners. Product piracy not only causes loss of revenue for manufacturers but also destroys the value of private collections. A counterfeit purchased as genuine has a value of zero and can even lead to legal consequences when attempting to sell it. The risk is particularly high with online purchases from private individuals, as there are often no guarantees provided.
Protection against counterfeits begins with careful documentation. Always keep all purchase receipts, certificates, and repair invoices. These documents are the first step in establishing provenance. However, for binding assurance, the evaluation by recognized experts in luxury goods appraisal is essential. Only a certified appraisal provides you with the assurance that it is an original and protects you from unpleasant surprises. This assurance is important not just for selling but also for insuring your valuables.
Not every luxury item is automatically a good investment. The Knight Frank Luxury Investment Index (KFLII) revealed significant differences between the various categories in 2024. While the overall index fell by 3.3%, there were clear winners and losers. Particularly art and rare spirits experienced significant value losses.
Here is an overview of the performance data for selected categories:
Handbags: +2.8%
Jewellery: +2.3%
Watches: +1.7%
Classic Cars: +1.2%
Wine: -9.1%
Rare Whisky: -9.1%
Art: -18.3%
These figures demonstrate that the luxury goods market is no guarantee of success. An investment in a Hermès bag could have been more profitable in 2024 than purchasing a piece of art. Therefore, it is crucial for owners to understand the specific market trends of their collectibles. A data-based valuation for luxury goods helps you accurately assess your items' performance and determine the optimal time for a potential sale.
If you sell private valuables in Germany, you should be aware of the tax regulations to avoid large back payments. The key factor is the so-called speculation period from § 23 of the Income Tax Act (EStG). For movable goods such as jewellery, art, or watches, this period is exactly one year. If you sell such an item within a year after purchase, the entire profit is taxable.
Since 2024, a tax-free limit of 1,000 euros applies to the total profit from all private sales transactions per year. If your profit is 999 euros, you pay no tax. However, if it is 1,001 euros, you must tax the entire amount at your personal income tax rate. It is important that profits and losses from different sales within a year are offset against each other. Therefore, careful documentation of purchase and sale dates is essential. If you are unsure, an initial assessment can be provided through our ImmoGPT chat, which is also trained to answer questions about asset valuation.
The value of luxury items today is determined by global market data, specific object characteristics, and even tax deadlines. Emotional estimates or outdated assumptions quickly lead to financial losses of 15% or more. The market in 2024 has shown that only a data-driven and objective analysis can reveal the true value of an item. This is as true for a rare watch as it is for an inherited property.
The key to success lies in moving away from pure speculation. A professional, AI-supported evaluation, like the one Auctoa offers for real estate, provides a neutral and market-appropriate basis for your decisions. Contact us now without obligation to find out how data-driven analyses can also help you maximise the value of your assets. An informed valuation is the first step towards a secure and profitable sales strategy.
Bain & Company provides insights into the results of their 2024 luxury goods study for Germany.
Statista delivers a detailed outlook on the luxury goods market in Germany.
The Federal Statistical Office (Destatis) provides comprehensive information on income, consumption, living conditions, assets, and debts in Germany.
The Deutsche Bundesbank publishes a study on wealth development in Germany, highlighting nominal growth, real declines, and persistent inequality.
The BVDG (Federal Association of Wholesale, Foreign Trade, Services) makes its 2022 monitoring report available.
The VDA (German Association of the Automotive Industry) informs in a press release about slightly rising classic car prices.
The University of Greifswald offers a discussion paper containing relevant research findings on topics such as luxury goods or consumer behaviour.
Deloitte Digital provides insights into the Swiss watch industry.
Deloitte Germany provides an overview of the consumer goods industry.
Why is original packaging so important for luxury items?
The original packaging and accompanying documents (Box & Papers) are a crucial part of the provenance. They confirm the authenticity and completeness of the set, which is highly valued by collectors and can increase the resale value by up to 25%.
How can I have the authenticity of a luxury item verified?
The safest method is an examination by the manufacturer themselves, an official auction house, or a certified independent appraiser. These experts possess the necessary knowledge and technical means to detect counterfeits.
What does the speculation period mean in private sales?
The speculation period (§ 23 EStG) in Germany stipulates that profits from the sale of private goods (except real estate) are tax-free if more than a year has passed between purchase and sale. If sold earlier, the profit is taxable.
Is it more worthwhile to invest in watches or handbags?
Based on 2024 data, handbags had a slightly better value performance with +2.8% compared to watches with +1.7%. Both categories are considered relatively stable investments, with performance heavily depending on the specific model and condition.
What to do if I have lost the documents for my luxury item?
Even without original papers, a valuation can be provided. The manufacturer can often confirm authenticity based on the serial number and potentially issue archive extracts. However, the value is generally lower than that of a complete set.
How does the condition affect the value?
Condition is one of the most critical factors. Signs of wear, scratches, or non-original replacement parts can significantly decrease the value. A mint condition can increase the price by 20-30% or more compared to a worn condition.
