Celebrated craftsman Christian Wohlmuther created the traditional shorts from red deer hide and trimmed it with diamonds and gold.
Christian, from Bad Mitterndorf, in the Austrian state of Styria, originally sold the outfit to a wealthy client from Dubai for EUR 83,000 (GBP 71,200) in 2007.
He has now said: “I’m convinced it’s worth more than EUR 120,000 (GBP 103,000) today simply due to the increase in value of the materials.”
The revelation comes as millions of beer fans are set to slip into their leather shorts for this year’s Oktoberfest in Munich, Germany, which started on 16th September.
Another extraordinary lederhosen created by Christian which featured dozens of Swarovski crystals was auctioned off at a charity event for EUR 4,000 (GBP 3,430).
The 52-year-old tailor’s customers include top-tier politicians, Olympic gold medalist skier Michaela Dorfmeister and the former ATP number one and 1995 French Open tennis champion Thomas Muster.
Christian said the super-expensive lederhosen was a one-off assignment.
He explained: “But I do get asked to create lederhosen costing between EUR 15,000 and 30,000 [GBP 12,900 to 25,700].
“The highest-possible quality of lederhosen is reached at around EUR 4,500 [GBP 3,900].
“From then on, its value can be increased by applying precious buttons and buckles.”
But he added: “A lederhosen costing around EUR 2,000 [GBP 1,715] will be your companion for the rest of your life.”
Speaking about how to ensure the tradition-rich garment’s longevity, the tailor explained: “It has to be made from authentic and not from artificial leather.
“Wearing it on a regular basis is essential. Humidity like some sweat and rain is actually a good thing.”
Christian concluded: “But do not store your lederhosen in a heated room for too long.”
Lederhosen have been worn by alpine farmers and hikers in Austria, the German State of Bavaria and South Tyrol for centuries.
In the late 20th century, they developed into a trendy fashion item increasingly worn by young men.
The 188th edition of the famous beer festival kicks off on 16th September and ends on 3rd October.
Last year’s event was attended by around 5.7 million people.
Customers at the Oktoberfest’s different beer tents must pay between EUR 12.60 (GBP 10.80) and EUR 14.90 (12.80) for a glass of lager, which is traditionally served in one-litre glasses.
This is a year-on-year increase of more than six per cent.