BSTA Weekly Report – 9th March 2026
The most important news selected by the BSTA editorial team for this week.
Authors:
- Giorgio Bertucci
- Costanza Franzinelli Socini Guelfi
- Guia Roberta Moretti
- Emma Zaynetdinova
Luxury Under Pressure: Assessing the Impact of Middle Eastern Escalation
Following the military escalation in the Middle East, the luxury goods segment suffered a substantial decline in performance. With already sluggish demand in China, the impact was evident, considering the Middle East's role as the industry’s main growth driver.
The STOXX Europe Luxury 10 Index fell by roughly 9% between the 2nd and 3rd of March, marking one of its steepest declines in years. The respective stocks of the four biggest luxury conglomerates each observed a drop of 7-10%. Kering, still struggling with Gucci’s turnaround and using Dubai as its primary strategic base for the Middle East, dropped by 10.6%. Richemont, having the highest regional exposure with the Middle East accounting for 9% of its global revenue, registered a 10.1% fall. LVMH, the world’s largest luxury group, declined by 8.6%, and Hermes, more resilient, by 7.4%.
Amidst this decline, though, Bernard Arnault, LVMH’s CEO, has reportedly made a purchase of the conglomerate’s shares. This way, LVMH’s leadership is signalling high conviction in their long-term recovery, leveraging the current valuation as an attractive entry point.
Among the factors contributing to the market's reaction is also the timing of the escalation, which coincided with the lead-up to the end of Ramadan (March 18). The period is usually marked by peak shopping season in the region, with high-net-worth-individuals also travelling to European luxury capitals. Major retail hubs, such as the Dubai Mall and Mall of the Emirates, saw widespread temporary closures or reduced operations on March 2nd and 3rd due to airspace closures and local curfews.
The sharp market reaction is also due to the potential spill-over effects. Suspended flights to and from the region directly cut off the flow of high-spending tourists who fuel luxury sales. Geopolitical instability often leads to a wait-and-see mentality among the ultra-wealthy, dampening discretionary spending even outside the immediate conflict zone, which, if unceased, may result in Middle Eastern customers cancelling post-Ramadan trips to Paris, London, and Milan, further hurting European "tax-free" retail revenue.
While the escalation in the Middle East has shaken that confidence in the short term, the luxury sector has a storied history of rebounding from regional crises. The focus now shifts from immediate losses to the speed of recovery, defining the luxury landscape for the remainder of 2026.
Leclerc’s wedding getaway car? A $40 million Ferrari
Charles Leclerc and Alexandra Saint Mleux were married on the 28th in Monaco. For that occasion, the Ferrari driver chose a rare classic 1957 Ferrari 250 Testa Rossa.
Produced between 1957 and 1958 with just 19 units built, today is considered one of the rarest Ferraris, with a value between $30 million and $40 million. The car carried a provisional export plate issued by the Principality of Monaco, suggesting the Testa Rossa may have been arranged specifically for the wedding days.
The 250 TR was built for endurance racing. The engine is the Colombo V12 of 3.0 litres, powered by Weber carburettors, with around 300 hp and a curb weight of about 800 kg. In 1958, the Ferrari 250 TR won the 24 Hours of Le Mans and the World Sports Car Championship. What makes this Ferrari immediately recognizable are the so-called “pontoon fenders”, the front fenders separated from the car body. The solution also arose from functional needs related to cooling and managing air flows in the brake area.
In the last 20 years this model has notably appeared on the market only twice: the former was sold in 2009 for $12.1 million, a record at the time; while the latter was offered at auction in 2024 by RM Sotheby's, with an estimated value of $38 million.
Diamonds on Display: The Multi-Million Euro Sparkle of Sanremo 2026
The 2026 edition of the Sanremo Music Festival confirmed once again that the event is not only Italy’s most important musical stage, but also a strategic showcase for high jewelry maisons. Beyond fashion, the jewels worn during the festival represented significant economic value, reinforcing their status as luxury trophy assets displayed before millions of viewers.
One of the most discussed pieces was the “Asimmetrico” necklace from Pomellato’s 1967 High Jewelry Collection, worn by Laura Pausini during the opening night. The collier features 78 diamonds and a remarkable 55.96-carat tanzanite set in rose gold. Crafted through more than 700 hours of artisanal work, this one-of-a-kind creation has no official list price, as it is available only upon request. However, industry estimates place its value well above six figures, comfortably exceeding €100,000, especially considering the rarity and size of the central gemstone. In the context of trophy assets, this necklace embodies scarcity, craftsmanship, and brand heritage, three core drivers of luxury valuation.
Pausini’s jewelry portfolio throughout the festival further reinforced this economic dimension. She wore a Nudo High Jewelry ring with diamonds and tanzanite valued at over €53,000, an Iconica diamond ring priced at approximately €10,700, and a Catene High Jewelry ring worth around €45,000. Additional high-end pieces, including diamond and moonstone earrings, contributed tens of thousands of euros more. Even excluding the main collier, the declared pieces alone surpassed €100,000 in cumulative value. When combined with the undisclosed but substantial worth of the statement necklace, the total estimated value of her jewelry selections reached a level comparable to a diversified portfolio of alternative luxury investments.
Another striking example of jewelry as a high-value asset was Achille Lauro’s “Magnifica” necklace by Damiani, part of the Ode all’Italia High Jewelry collection. The piece features a 59.66-carat Australian white opal as its centerpiece, surrounded by diamonds and additional precious stones set in white gold. As with most high jewelry masterpieces, the necklace is not publicly priced, but specialized sources estimate its market value at approximately €300,000. The valuation reflects not only the size of the opal, but also its rarity, artistic design, and the reputational capital of the Damiani brand. In asset terms, this is a museum-level object positioned between wearable art and investment-grade collectible.
Other artists contributed to the overall luxury exposure of the festival. High-value Tiffany & Co. pieces and additional diamond parures worn by performers such as Sayf and Elettra Lamborghini were collectively estimated in the tens of thousands of euros, reinforcing the presence of established global brands within the Sanremo media ecosystem.
From an economic perspective, Sanremo 2026 functioned as a temporary high-visibility platform for luxury asset signaling. The jewels displayed were not mere accessories but capital-intensive objects that combine intrinsic material value (diamonds, tanzanite, opals), craftsmanship costs, brand equity, and scarcity premiums. Their presence on stage amplified both symbolic and financial value through media exposure, effectively transforming the festival into a live exhibition of high jewelry assets.
In conclusion, the 2026 Sanremo Festival demonstrated how luxury jewelry operates simultaneously as aesthetic expression and economic instrument. The six-figure and even near seven-figure valuations associated with the featured pieces underline their positioning as trophy assets: rare, highly visible, and embedded within a broader narrative of prestige, heritage, and exclusivity.
Milano’s Green Spiral: How Vitae is Redesigning the Urban Future of Symbiosis
Covivio has officially started construction on Vitae, a new mixed-use building in Milan’s Symbiosis district, marking a key advancement in the urban transformation of the city’s former industrial area. Located in Via Serio in the city’s southeast, the project is part of a larger regeneration strategy aimed at solidifying Symbiosis as a vibrant hub of innovation, culture, and business.
The development site spans approximately 5,000 square meters and will be replaced by an eight-story building offering more than 11,000 square meters of gross leasable area, with an additional 2,000 square meters of terraces and loggias. Completion is scheduled for late 2027. A major commercial milestone was achieved even before construction began: telecom operator Fastweb pre-leased about 75 % of the building’s space, reinforcing market confidence and the strong demand for modern, sustainable office spaces in Milan’s real estate sector.
Designed by CRA - Carlo Ratti Associati, Vitae combines flexible workspaces with integrated ground-floor services and retail, promoting worker wellbeing and social interaction. A standout architectural feature is the “green promenade” that spirals around the building from ground level up to the rooftop. Each floor will include vine-covered terraces, reflecting the building’s name, symbolizing a continuous dialogue between architecture, nature, and urban context. At the base of the building, a 3,000 sqm private plaza open to the public will provide space for community gatherings, relaxation, and outdoor activities.
The project also includes public realm improvements along Via Serio, such as expanded sidewalks and new tree plantings, and is designed to target LEED Platinum and WELL Gold sustainability certifications, emphasizing energy efficiency, environmental performance, and occupant wellbeing. Overall, Vitae stands as a flagship example of contemporary urban regeneration: an innovative architectural intervention that blends greenery with urban life, restores public space to the city, and enhances both the aesthetic and functional quality of the neighbourhood.
£131 Million and Counting: The Enduring Appeal of Blue-Chip Art
Sotheby’s London evening sale on March 4 pulled in an impressive £131 million, offering a strong reminder that the very top end of the art market is still very much alive. Even with economic uncertainty and geopolitical tensions creating volatility elsewhere, collectors showed up and bought decisively, every one of the 54 lots offered was sold.
One of the biggest surprises of the night was a painting by Leon Kossoff, a key member of the London School. The work had been estimated at £600,000–£800,000, but it ultimately sold for around £5.2 million[2], setting a new auction record for the artist. Kossoff has always been respected in academic and museum circles, but his market hasn’t historically reached the same levels as some of his contemporaries. This result suggests collectors may be reassessing his place in post-war British. Such results indicate a re-evaluation of the artist’s market position, with buyers assigning him to a higher valuation tier.
The other major highlight was a rare Francis Bacon self-portrait, which hammered at roughly £13.5 million before fees. Bacon is already considered a blue-chip artist, but self-portraits are a particularly special category within his work. He didn’t produce many of them, and several are held in major museum collections, which makes the ones that do come to market highly competitive. What makes this sale even more striking is the long-term appreciation: the same painting last sold in 1994 for just £330,000. Such price growth over three decades underscores the powerful role that scarcity and historical significance play in driving long-term value.
Beyond the headline results, the atmosphere of the sale was equally interesting. The salesroom was reportedly one of the most crowded London has seen in years, despite broader geopolitical instability. This level of participation indicates that top-tier works continue to attract confident bidding, even when other markets appear volatile.
The strength wasn’t limited to just two lots either. Works by major names like Lucian Freud, Andy Warhol, and Claude Mone also performed solidly, showing that demand at the top end is relatively broad. This matters because it signals depth in the market, not just excitement around one or two exceptional pieces.
Overall, the evening reinforced several defining dynamics at the top end of the market. Scarcity remains decisive: rare works, particularly those absent from auction for decades, continue to generate the strongest competition. Institutional recognition and art historical standing also play a central role, sustaining demand even in uncertain conditions. While mid-level segments may fluctuate, museum-quality works appear relatively insulated from broader volatility. Sotheby’s £131 million result once again demonstrates that when rarity, prestige, and historical significance align, capital follows.