Welcome
Sotheby’s International Realty’s Chief Marketing Officer, A. Bradley Nelson, introduces the 2025 Luxury Outlook℠ report:

"We’re seeing encouraging signs across key markets, with inventory stabilizing and returning to healthy levels in prime locations worldwide."

Resilience in a Changing Market
The global luxury real estate market has remained strong, adapting to shifts in politics, wealth distribution, and buyer preferences. Following the pandemic-induced transformation of what home means, the 2025 Luxury OutlookSM report offers insights into an industry poised for growth, supported by stabilizing inventory and renewed demand in prime locations.

As governments stabilize after global elections and financial markets respond favorably, ultra-high-net-worth individuals (UHNWIs) are fueling real estate activity. A $84 trillion generational wealth transfer is accelerating the entry of younger buyers prioritizing lifestyle, community, and experiences.

Trends Shaping Buyer Decisions
Luxury buyers are increasingly drawn to properties that reflect their lifestyle aspirations:

• Nature, Arts, and Culture: Locations like Italy see surging interest, driven by “The White Lotus” effect and a blend of traditional charm with modern conveniences.
• Branded Residences: Iconic brands like Dolce & Gabbana bring curated amenities and style to residences, combining investment with experiential living.
• Social Media Influence: Homes are now both investments and backdrops for curated, shareable lifestyles.

Whether opting for new builds—popular with Generation X—or restoring historic properties, buyers are seeking uniqueness and personalization.

Global Luxury Highlights
Across key markets, the luxury sector thrives:

• France: The Côte d’Azur attracts buyers from North America, Asia, and the Middle East, while inventory remains tight, driving appreciation.
• Spain: International demand spurs growth, particularly for branded properties.
• Dubai: A $65.5 million record-breaking sale highlights the city’s global appeal.
• London: Interest from American buyers remains strong, reinforcing the British capital’s global status.

Market Outlook
The luxury real estate sector consistently outperforms the broader market. Between 2019 and 2023, luxury home prices rose 65%, far outpacing the 40% gains in the non-luxury market. Limited inventory continues to drive price appreciation.

Notable 2024 sales included a $28.5 million beachfront property in Florida and a $16.7 million home in New Jersey, showcasing sustained demand for exceptional properties. Additionally, Sotheby’s International Realty expanded into emerging markets like Anguilla and Poland, broadening its global footprint.

Future Growth Drivers

1. Wealth Migration: High-net-worth individuals are relocating to markets like the U.S., UAE, and Singapore, reshaping local property trends.
2. Sustainability: Buyers increasingly seek hybrid homes with eco-friendly features, such as solar panels, green roofs, and rainwater harvesting systems.
3. Technology: AI tools and smart home integration are becoming central to both marketing properties and enhancing luxury living experiences.

Challenges and Opportunities
The 2025 outlook points to several dynamics influencing the market:

• Interest rate stabilization is expected to unlock new activity, with UHNWIs often paying in cash, mitigating rate fluctuations.
• Limited inventory in ultra-luxury markets keeps competition high, with off-market deals becoming more common.
• Cultural shifts, including demand for wellness-focused amenities and hybrid working setups, continue to shape buyer behavior.

A Promising Future for Luxury Real Estate
As we move into 2025, Sotheby’s International Realty anticipates continued strength in luxury markets. Factors like pent-up demand, generational wealth transfers, and global mobility are driving transactions, while branded residences and lifestyle-focused investments redefine what it means to own a luxury property.

From Italy to Dubai, London to New York, the allure of premium real estate remains unparalleled, with unique opportunities emerging in established and growing markets alike.

Discover the full 2025 Luxury Outlook℠ Report here.

This material is based upon information which we consider reliable but because it has been supplied by third parties, we cannot represent that it is accurate or complete and it should not be relied upon as such. All offerings are subject to errors, omissions, changes including price or withdrawal without notice.