Sotheby’s International Realty has released the 2025 Luxury Outlook, a comprehensive report analysing the trends shaping the global high-end residential real estate market for the year ahead.

Click here to read the complete report.

Notable insights from the report include:

The report highlights how political clarity, following a pivotal year of elections worldwide, has brought stability to financial markets. As a result, confidence among buyers has increased, particularly in the U.S., where ultra-high-net-worth individuals (UHNWIs) continue to link real estate investment decisions closely to stock market performance.

Additionally, the ongoing $84 trillion wealth transfer from Baby Boomers to younger generations is significantly influencing the market. Millennials and Generation X, in particular, are favouring homes that emphasise lifestyle, community, and sustainability. Consequently, these groups are drawn to properties that foster meaningful connections and align with their values.

Moreover, the rising popularity of branded residences underscores the shift in buyer preferences. Collaborations like Dolce & Gabbana’s Miami developments illustrate how curated amenities and culturally resonant offerings are redefining luxury living. At the same time, international hubs such as the Côte d’Azur, Dubai, and London are witnessing sustained demand, with Dubai achieving record-breaking sales that highlight its growing appeal.

Furthermore, technological advancements are playing a transformative role in the luxury market. Virtual tours, AI-driven recommendations, and blockchain are not only streamlining transactions but also enhancing transparency. Social media, too, has elevated the way properties are marketed, turning homes into aspirational lifestyle showcases.

As inventory levels stabilise, the focus is shifting toward properties with architectural distinction or historic value. This renewed interest in unique and thoughtfully designed homes demonstrates how individuality and values-driven investment continue to drive demand in the luxury market.