Rolex vs. Other Luxury Brands: A Comparative Study of Value Depreciation

It’s been well established over time that a luxury watch is not just another purchase, but rather a statement of status and prestige. Because of this, every experienced buyer knows what to pay attention to when searching for the perfect watch.


Naturally, price, aesthetics, and functionality are the main factors that determine the desirability of a Rolex; however, there is another aspect that is just as important. The appreciation rate refers to the watch’s ability to grow in value and retain it over time, making it even more attractive for collectors and enthusiasts.


Understanding factors influencing a luxury watch’s value and how different brands compare in its retention can provide important information and valuable insights to help you make a more informed decision.

What Makes the Value of a Watch Depreciate?

If your main reason for purchasing Rolexes is their investment opportunity, value depreciation is probably the first factor you should be looking at before making a purchase, as it’s exactly what impacts the return on your investment. Various reasons influence value depreciation, and understanding these dynamics is precisely what will make you a wise investor. 


The reputation of any brand impacts the value of their products. Therefore, brands with long histories and established names always retain their value. No other brand is as associated with luxury and prestige as much as Rolex, which is why value depreciation is not that big of an issue with these watches.


Depending on how easily available certain models are, their prices can vary drastically. Limited editions, discontinued models, and watches with greater historical significance will always hold their value better than the easily available ones. Besides, fluctuations in customer preferences can affect an item’s resale value, which is why products of brands with loyal customer bases depreciate more slowly. 


The watch's intricacy increases its value retention. Precious materials and maintaining the highest standard of craftsmanship and precision allow Rolex to hold its value over decades, while advanced functionality and special features add to the appreciation rate even further.

Why Rolex Retains Its Value

Rolex has been devoted to excellence for more than a century, guaranteeing that each watch is a masterpiece of horology. The brand’s reputation as the highest engineering standard ensures that watches maintain a high appreciation rate. This allows us to safely say that a brand’s legacy is one of the most important factors impacting the appreciation rate, securing Rolex’s place as one of the best investment opportunities.


Rolex’s functionality also greatly contributes to its value. Various models were specifically designed for divers, racers, polar explorers, and other professionals requiring a durable companion that can withstand extreme conditions, offering features like water and scratch resistance. For example, the Rolex Milgauss provides unmatched protection against magnetic fields, making it perfect for scientists and engineers, and the Rolex GMT-Master II is ideal for travellers needing to track multiple time zones. 


Many Rolex models have limited edition models that are scarcely available and, therefore, have a higher value. Iconic limited models, like the Daytona “Paul Newman”, are in constant demand, always remaining highly desirable for new and experienced collectors. 

Rolex vs. Other Brands

Only a handful of brands can be considered worthy competitors to Rolex. Let’s discuss several most prominent luxury watch brands and what nuances influence their value retention.

Tag Heuer

Tag Heuer is renowned for its association with motorsports, which focuses primarily on precision and high performance. It’s still considered one of the most luxurious brands on the market. However, its broader production scale is one of the factors leading to the watches’ faster depreciation rate. 


While signature models like Carrera or Monaco still remain iconic, Tag Heuer watches depreciate much faster than those of Rolex or Patek Philippe. This brand’s models usually depreciate 10% per year for three years, after which the value plateaus. While it wouldn’t be fair to compare them to the aforementioned brands, Tag Heuer is still considered to hold the value of its products quite well.

Patek Philippe

Often regarded as the highest standard of horology, the scarcity of Patek Philippe watches ensures that the brand's products hold their value for a long time. Even the simplest models are produced in several months to a year, with the most complex ones taking about two years to craft. Naturally, a high demand paired with a highly limited supply results in an unmatched value retention.


With the help of their signature models, Nautilus and Aquanaut, the appreciation rate of Patek Philippe watches can easily be compared to Rolex. Limited production, exquisite design, and intricate functionality help the brand maintain a prestigious status in the luxury watch market.

Audemars Piguet

Innovative design and the highest-quality craftsmanship have earned Audemars Piguet its place among other luxury watch brands. It is mainly famous for pioneering the sports watch market. The most notable models, Royal Oak and Royal Oak Offshore, are truly iconic sports watches in high demand.


While not all Audemars Piguet models maintain their value as effectively as the signature ones, this brand is still considered one of Rolex's few competitors in terms of value depreciation, as the iconic status and limited availability often cause the price to increase over time. 

Final Notes

Hopefully, this article helped you determine the key factors impacting the value of different luxury watches and which brands offer the highest value retention. Even though Patek Philippe and Audemars Piguet are considered to hold their value over time better than Tag Heuer, Rolex still remains the pinnacle of watchmaking, proudly maintaining its place as the highest standard of horology and the pinnacle of precision.