Whoever first came up with the term “time is money”, got it right. Though watches have been around for a few centuries now, they made the paradigm shift from being mere timekeepers to sought-after collectibles and prized possessions, sometime in the not-so-distant past. A key development of the last few decades, however, is the growing number of wristwatch collectors buying up prized brands and models as investments and a means of returns in the future. In the UAE, we decided to explore this timely trend and discovered not only a range of collectors who pursue and purchase favoured models for their rarity, design and function, but also with certain cognizance of these timepieces’ future worth.
High-end watches are sought after not only for their design, intricate craftsmanship, complications and obvious status symbols, but are being seen as viable alternate investments — in the same league as precious metals like gold and reputed or rare art.
To learn the horological art of spotting and making the right buy, a lot of factors show up on the dial — intrinsic brand value, limited editions, quality of materials used and vintage pieces, among others. Known brands that make the cut are now household names including Breitling, Breguet, A. Lange & Söhne, Audemars Piguet, Patek Philippe, Vacheron Constantin, Rolex, IWC, Jaeger Le-Coultre and Ulysse Nardin, to name a few.
However, most collectors we met — brand retailers and watch aficionados alike — unanimously agreed that Rolex and Patek Philippe are the best bets for your money, especially if you’re starting out and are unsure of which brands to invest in, as they are guaranteed to retain their value, if not appreciate.
In the first half of 2012 alone, the UAE ranked among the top 10 countries worldwide in importing Swiss watches dubai, according to the Federation of the Swiss Watch Industry FH. A recent report from Ahmed Seddiqi & Sons notes an “increased demand for complications and movements” among their clientele of late. It noted the luxury watch sector, in particular, is growing exponentially — a trend they are “optimistic” will continue on a healthy note”.
So, what makes it tick?
A cross section of avid watch collectors we spoke to explain the dynamics behind making the right luxury watch buy. The first and most notable trend spotted is that it’s not necessarily the prosperous and propertied who are investing in these quality timepieces. Many buyers are younger with comparatively less disposable incomes, who can only afford brands and models at the base price for luxury watches — usually around Dh30,000 — and might own only a few but valuable pieces.
Mostly, this buyer segment collects for two reasons — for wearable watches fitting aspirational values and personal ethos, and as a solid, reliable investment proposition for the future.
Abdul Wahab is one such collector in his early 30s, who is pretty clear-cut about his choices. He owns only a few luxury watches, and might consider downsizing even that in the future, but has no doubt that he has made sound investments in the limited collection. “I always had a passion for watches but never had the means to buy more than a few expensive brands,” says Wahab. A Breitling Aerospace and two Rolex models feature prominently in his collection. “I studied aerospace engineering, and the Breitling is a pilot’s watch; the one I own is crafted out of titanium, and it fulfills a specific purpose for me. The Rolexes are, of course, the first step you take into an aspirational watch collection — what you buy when you feel you’ve ‘arrived’!”
Wahab is quite certain about his watches-for-investment plan too. “My watches are function-and-passion based decisions. If you have only Dh30-50,000 to start out with, invest in Rolex. Another brand that will likely double in value over the years is Patek Philippe. To me, IWC is the super aspirational brand I’d like to aim for someday,” he says.
On the other end of the spectrum is Ovais Zubair Patka, who clocked his first major buy at age 19 and now owns over 50 luxury wristwatches. “People collect watches for different reasons. For me, the two decisive factors are rarity of the piece and finish, which leaves a limited bracket to choose from,” says Patka, showing us one of his prized pieces — a special, limited edition Patek Philippe commemorating major multi-brand retailer Ahmed Seddiqi & Sons’ 60th anniversary. It shows Dubai as the home city, among its world time functions.
“Buying rare, collectible pieces is easier said than done though,” he adds. “You can’t walk in and take your pick. The big brands handpick you to be among their buyers for exclusive editions of just 50 to 75 pieces. It’s also not about how wealthy you are, but a real passion and sincerity for watches.”
Reluctant to talk about his watches’ value, Patka says that limited editions do appreciate in value tremendously. “Patek Philippe, A. Lange & Söhne and Rolex are the best bets. Panerai is another favourite brand of mine. Some watches I bought years ago are nearly double the price now. A lot of people in Dubai collect watches for both pleasure and investment; it’s on par with gold and jewellery and worth the investment. If the brand and selection is right, it’s a sustainable buy and an investment you won’t lose money on, unless there’s a recession,” explains Patka, who does his research through watch blogs, websites and magazines regularly in order to be well prepped to make the right choice.
Collectors like Patka say the UAE is one of the best places to be at this time. “There’s a huge demand for luxury watches here, and all the major brands cater to the market. UAE is in line with Hong Kong, Singapore and London as a big watch-buying market.”
Even a hardcore collector could choose to scale down their hard-earned buys. “Down the line, you realise it’s not about quantity, but what you really want. I might shrink my collection down to 20 pieces, retaining the high value ones. While I haven’t considered how or when I might sell them, all the major auction houses have offices here. There are also many secondhand watch dealers who’d be eager to service you, while A third option would be to sell directly to other buyers who may be looking for a particular model,” reveals Patka.
With over 60 watches in his name, Mandeep Singh Pujji is another passionate collector who owns models such as the IWC Portuguese Perpetual, Jaeger Le-Coultre Master Geographic, Rolex Rose Gold Daytona, Vacheron Constantin Patrimony and Audemars Piguet Royal Oak Safari.
While he has no immediate plans to sell any, Mandeep vouches for their value as investments. “The UAE has some of the best prices for high-end watches and also an immense range to choose from. For those who wish to sell their watches later, there is a large dealer network in the secondary market,” says Mandeep. “Breguet, Vacheron Constantin, Patek Philippe, gold Rolex models and IWC are some of the brands I see rising in value in the next few years. Since I started collecting seven years ago, some of them have even doubled in price.”
If you have a thing for timepieces, the time is right to watch the market (literally). For sure, these collectors are not a flash in the pan, but a part of the larger scheme of things in which researching, buying and selling luxury wristwatches will continue and grow into a major share of the worldwide watch business. Time will surely tell.
WATCH IT!
Go for rare pieces, limited editions (1-100 handcrafted pieces), models with complications, vintage buys and original pieces (not restored or refurbished).
Watch collectors are not always super-rich. You can get into the market at various price ranges.
Collecting without interest and passion is bound to fail — deal in watches because you like them, wear them and enjoy its many features. Investment value is almost always secondary.
Whoever first came up with the term “time is money”, got it right. Though watches have been around for a few centuries now, they made the paradigm shift from being mere timekeepers to sought-after collectibles and prized possessions, sometime in the not-so-distant past. A key development of the last few decades, however, is the growing number of wristwatch collectors buying up prized brands and models as investments and a means of returns in the future. In the UAE, we decided to explore this timely trend and discovered not only a range of collectors who pursue and purchase favoured models for their rarity, design and function, but also with certain cognizance of these timepieces’ future worth.
High-end watches are sought after not only for their design, intricate craftsmanship, complications and obvious status symbols, but are being seen as viable alternate investments — in the same league as precious metals like gold and reputed or rare art.
To learn the horological art of spotting and making the right buy, a lot of factors show up on the dial — intrinsic brand value, limited editions, quality of materials used and vintage pieces, among others. Known brands that make the cut are now household names including Breitling, Breguet, A. Lange & Söhne, Audemars Piguet, Patek Philippe, Vacheron Constantin, Rolex, IWC, Jaeger Le-Coultre and Ulysse Nardin, to name a few.
However, most collectors we met — brand retailers and watch aficionados alike — unanimously agreed that Rolex and Patek Philippe are the best bets for your money, especially if you’re starting out and are unsure of which brands to invest in, as they are guaranteed to retain their value, if not appreciate.
In the first half of 2012 alone, the UAE ranked among the top 10 countries worldwide in importing Swiss watches dubai, according to the Federation of the Swiss Watch Industry FH. A recent report from Ahmed Seddiqi & Sons notes an “increased demand for complications and movements” among their clientele of late. It noted the luxury watch sector, in particular, is growing exponentially — a trend they are “optimistic” will continue on a healthy note”.
So, what makes it tick?
A cross section of avid watch collectors we spoke to explain the dynamics behind making the right luxury watch buy. The first and most notable trend spotted is that it’s not necessarily the prosperous and propertied who are investing in these quality timepieces. Many buyers are younger with comparatively less disposable incomes, who can only afford brands and models at the base price for luxury watches — usually around Dh30,000 — and might own only a few but valuable pieces.
Mostly, this buyer segment collects for two reasons — for wearable watches fitting aspirational values and personal ethos, and as a solid, reliable investment proposition for the future.
Abdul Wahab is one such collector in his early 30s, who is pretty clear-cut about his choices. He owns only a few luxury watches, and might consider downsizing even that in the future, but has no doubt that he has made sound investments in the limited collection. “I always had a passion for watches but never had the means to buy more than a few expensive brands,” says Wahab. A Breitling Aerospace and two Rolex models feature prominently in his collection. “I studied aerospace engineering, and the Breitling is a pilot’s watch; the one I own is crafted out of titanium, and it fulfills a specific purpose for me. The Rolexes are, of course, the first step you take into an aspirational watch collection — what you buy when you feel you’ve ‘arrived’!”
Wahab is quite certain about his watches-for-investment plan too. “My watches are function-and-passion based decisions. If you have only Dh30-50,000 to start out with, invest in Rolex. Another brand that will likely double in value over the years is Patek Philippe. To me, IWC is the super aspirational brand I’d like to aim for someday,” he says.
On the other end of the spectrum is Ovais Zubair Patka, who clocked his first major buy at age 19 and now owns over 50 luxury wristwatches. “People collect watches for different reasons. For me, the two decisive factors are rarity of the piece and finish, which leaves a limited bracket to choose from,” says Patka, showing us one of his prized pieces — a special, limited edition Patek Philippe commemorating major multi-brand retailer Ahmed Seddiqi & Sons’ 60th anniversary. It shows Dubai as the home city, among its world time functions.
“Buying rare, collectible pieces is easier said than done though,” he adds. “You can’t walk in and take your pick. The big brands handpick you to be among their buyers for exclusive editions of just 50 to 75 pieces. It’s also not about how wealthy you are, but a real passion and sincerity for watches.”
Reluctant to talk about his watches’ value, Patka says that limited editions do appreciate in value tremendously. “Patek Philippe, A. Lange & Söhne and Rolex are the best bets. Panerai is another favourite brand of mine. Some watches I bought years ago are nearly double the price now. A lot of people in Dubai collect watches for both pleasure and investment; it’s on par with gold and jewellery and worth the investment. If the brand and selection is right, it’s a sustainable buy and an investment you won’t lose money on, unless there’s a recession,” explains Patka, who does his research through watch blogs, websites and magazines regularly in order to be well prepped to make the right choice.
Collectors like Patka say the UAE is one of the best places to be at this time. “There’s a huge demand for luxury watches here, and all the major brands cater to the market. UAE is in line with Hong Kong, Singapore and London as a big watch-buying market.”
Even a hardcore collector could choose to scale down their hard-earned buys. “Down the line, you realise it’s not about quantity, but what you really want. I might shrink my collection down to 20 pieces, retaining the high value ones. While I haven’t considered how or when I might sell them, all the major auction houses have offices here. There are also many secondhand watch dealers who’d be eager to service you, while A third option would be to sell directly to other buyers who may be looking for a particular model,” reveals Patka.
Idea By Khaleej Times
