The 2025 Luxury Outlook report is here! From the Great Wealth Transfer, the rise of new global destinations, and luxury brands entering the branded residences category, gain the insights you need to navigate the evolving landscape with Sotheby’s International Realty’s 2025 Luxury Outlook report.
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A Clearer Picture
When we first introduced the Luxury OutlookSM report in 2021, the definition of home was undergoing a seismic shift as a result of COVID-19. Unprecedented changes in the real estate market created a critical need to provide our clients with timely, global intelligence informed in real time by our unparalleled network of more than 1,100 offices in 83 countries and territories. Our goal with this report is to deliver strategic insights so that you can make informed decisions.
As we enter 2025, the global luxury property market remains resilient. Our Luxury Outlook report provides an in-depth analysis of the many indicators that validate PricewaterhouseCoopers’ October 2024 forecast of an impending real estate cycle upturn. We’re seeing encouraging signs across key markets, with inventory stabilizing and returning to healthy levels in prime locations worldwide, and we hope to see pent-up demand drive a global increase in transactions in the coming months.
Following a landmark year of elections around the world, the direction of government in many democracies has become clearer. Politics are unpredictable, but here in the U.S., financial markets have responded bullishly to a decisive result, and as Philip A. White Jr., our president and CEO, points out, ultra-high-net-worth individuals (UHNWIs) pay close attention to stock market performance when making real estate investment decisions.
The anticipated US$84 trillion transfer of wealth from the Silent Generation and Baby Boomers to Generation X, Millennials and younger gathers momentum. These younger generations value lifestyle, community and meaningful connections—particularly after years of digital-first interactions.
Proximity to nature, arts and culture is profoundly shaping the tastes of emerging affluent buyers. “‘The White Lotus’ effect,” based on the hit HBO television show set in a luxurious resort, is drawing wealthy, younger investors, including digital nomads and professionals in the finance and technology sectors, to the timeless allure of destinations such as Italy. Similarly, the entry of storied fashion brands such as Dolce & Gabbana into the branded residency market in Miami, Florida, underscores a compelling trend: our lifestyle preferences are increasingly intertwined with real estate investments. Branded residences and the curated services and amenities they offer are emblematic of this trend of experience-led property purchases.
In today’s social media-driven world, homes have transcended their traditional role, becoming curated backdrops that we broadcast into the world. Whether buyers are looking for newly constructed homes—a market segment particularly popular with Generation X and now representing 16% of all home sales—or are undertaking restorations of historic properties, we continue to find that a home’s greatest selling point is its uniqueness.
Beyond the U.S., the mobility of UHNWIs continues to create new hubs for global luxury real estate. The Côte d’Azur in France has seen sustained price increases and growing interest from buyers in North America, the Middle East and Asia. Spain, too, has emerged as a hotspot for international buyers, with a dynamic market where Sotheby’s International Realty has significantly expanded its operational investment in the past year. We also continue to grow our presence in London, England, where Claire Reynolds, managing partner, United Kingdom Sotheby’s International Realty, notes that Americans’ affinity for the British capital has never been stronger. Queensland, Australia, meanwhile, remains a vibrant, growing market, while Dubai Sotheby’s International Realty achieved a record breaking US$65.5 million sale for a Jumeirah Bay Island villa in 2024.
At the time of writing, Sotheby’s International Realty offered 44,000 homes for sale. Inventory levels in the upper echelons of the market are improving and numerous examples of architecturally significant properties in premium locations, including assets never before offered for sale, are now available. If you haven’t explored our portfolio recently, I encourage you to renew your interest this year.
