Sotheby’s International Realty have recently released their much anticipated Mid-Year Luxury Outlook Report – this is what it means for ultra-high-net-worth buyers
Sotheby’s International Realty’s 2025 ‘Mid-Year Luxury Outlook Report’ frames prime property as a strong option for ultra-high-net-worth individuals looking to navigate market volatility. The report states that luxury real estate “remains a safe haven amid market uncertainties,” signalling that even choppy equity markets have not dented demand at the very top end.
Liquidity rules – because it can
One of the most significant statistics in the report is that 88% of high-net-worth buyers paid cash for their latest purchase, up from 82% last year. In an environment where commercial banks quote 30-year US conforming mortgages above 6.5%, the wealthiest cohort simply wires funds, bypassing rate anxiety altogether. Private bank “jumbo” loans, still hovering just below five per cent, are viewed as optional leverage for portfolio optimisation, not as a gateway to ownership.
That liquidity is translating into activity at the very top end. Transactions above $10m between February and May jumped by double-digits year-on-year, and trophy deals now account for 7.6% of all US housing sales, the largest share ever recorded. Behind the numbers lies a simple truth: volatility in equity and bond markets is driving fresh money into tangible assets with an intrinsic use-value.
Headwinds – they matter less than you think
Construction tariffs, labour constraints and soaring insurance premiums are squeezing developers, with the report estimating that hard costs on bespoke coastal builds have risen 28% since 2020, while insurance in US hurricane-prone zones has doubled. Yet paradoxically, those pressures reinforce resale values by discouraging fresh supply. In disaster-hit corridors such as Florida’s Big Bend, 46% of owners plan to rebuild exactly as before and 21% intend to upgrade with resilience in mind, choices that keep turnkey inventory painfully tight.
On the demand side, cross-border capital is resurgent. Foreign-buyer enquiries to Sotheby’s International Realty affiliates climbed 12% in the first half, led by Europe-based searches for US sunbelt properties and Gulf-based interest in Alpine ski homes. Currency arbitrage helps with the euro trading near US$0.92, dollar-denominated assets look 8-10% cheaper to continental Europeans than they did a year ago.
Design, wellness, and with inheritance in mind
Beyond the spreadsheets, three lifestyle currents are reshaping what qualifies as “prime”:
- Whole-life wellness – Cold-plunge pools, oxygenated gyms and circadian-lighting systems are now viewed as baseline, not luxuries.
- Energy sovereignty – Solar arrays with battery storage feature in 62% of new-build luxury listings, up from 41% in 2022.
- Legacy planning – Nearly half of all buyers under 45 say they are acquiring with inheritance in mind, accelerating a shift toward flexible floorplates that can evolve with family structures.
In Europe, the luxury property market remains steadfast. Italy Sotheby’s International Realty comments, “Italy’s luxury property market continues to show strong performance, driven by growing international demand and increased interest from US buyers, supported by a favourable exchange rate and Italy’s attractive flat-tax regime. The recent record-breaking sale of a US$172.8m seafront villa in Sardinia – Italy’s most expensive residential transaction to date – underscores the enduring global appeal of the country’s most exclusive real estate.” In some countries, for example Greece, Golden Visas and non-dom status are given as part of the purchase of a home, incentivising foreign buyers further.
On the back of the report, here are four properties turning heads this summer. All are on the market with Sotheby’s International Realty.
Elegant sea view villa in the heart of Porto Rafael, Sardinia
Designed by G. Béthoux, this four-bedroom property, on the market with Italy Sotheby’s International Realty for around €3.5m has a bright open-plan living and dining area, which flows seamlessly onto a panoramic veranda. Floor-to-ceiling windows frame breathtaking views of Sardinia’s emerald coastline.
The mezzanine level hosts a private master suite complete with walk-in wardrobe and a luxurious en-suite bathroom. The lower level features three guest bedrooms – two with en-suite bathrooms – and additional service areas including a laundry and pantry.
Outside, the 1,200 sqm landscaped garden is a private sanctuary, with a sculptural swimming pool nestled among granite monoliths, an outdoor shower and sunbathing terrace. The outside also benefits from a handcrafted pergola-covered dining and BBQ area, covered by a characteristic wooden woven structure created by the architect Lesuisse, inspired by local artisan traditions.
A secluded solarium terrace, accessed via a stone pathway, offers a front-row seat to spectacular sunrises and sweeping sea vistas. With meticulous landscaping ensuring total privacy.
The Grand Estate, Corfu, Greece
Set across 710 sqm, with five luxurious double bedrooms, The Grand Estate is perfect for relaxation and entertaining alike.
The property, on the market with Greece Sotheby’s International Realty for €6.4m, is perfect for indoor-outdoor living. Benefiting from floor-to-ceiling terrace doors, inhabitants have a constant view of the stunning vistas on their doorstep. The spacious sitting room, adorned with a majestic stone fireplace, seamlessly extends onto the terrace, offering the perfect location to entertain or indulge in alfresco dining. For those more inclined to entertaining indoors, a modern kitchen flows into the dining room with a pink marble table as its centrepiece.
All five bedrooms benefit from sea views, as well as lavish en-suite bath and shower rooms. Additional luxury amenities include: a stone-built pool house, a grand double-height hallway adorned with colonial-style sweeping staircases, a hilltop-covered terrace with 360-degree views of the island, and a three-car garage concealing a substantial one-bedroom apartment above, ideal for accommodating staff or guests seeking privacy.
Manorial palace in the heart of Dalt Vila, Ibiza
Originally built in 1800 and beautifully preserved, the home showcases its colonial roots through original architectural features – soaring ceilings with exposed wooden beams and expansive windows that flood the interior with natural light.
The residence, on the market with Spain Sotheby’s International Realty for €4.8m, boasts six en-suite bedrooms, including a master suite with its own private lounge, and seven full bathrooms. The spacious living areas are ideal for both formal entertaining and intimate gatherings, and a private terrace offers sweeping views of the sea and historic old town. Outdoors, the garden with its own kitchen is also perfect for enjoying the sun and panoramic views over the historic rooftops, the port, and the sea.
A rare chance to own a historic luxury residence – perfect as an exclusive private home, charming boutique stay, or heritage investment.
Five bedroom villa in sea caves, Paphos, Cyprus
This property, on the market with Cyprus Sotheby’s International Realty for €1.95m, is set on an expansive private plot and perfectly positioned to capture the full vista of the Mediterranean sunsets and sea views, this residence blends classical elegance with commanding scale. The architecture is timeless – defined by soaring ceilings, and a seamless connection between the interior and exterior of the property.
The main level unfolds with a formal living room, a dedicated kitchen preparation area, a guest bathroom, an office, and a luxurious master suite complete with dressing room and private bathroom.
Upstairs, four spacious en-suite bedrooms open onto a shared veranda that overlooks landscaped gardens and the open sea, offering a serene retreat for family and guests alike. The lower level is perfect for entertaining, featuring a TV room, an open-plan kitchen, a self-contained studio, and direct access to utility areas, the garage, and the pool.
Outside, the grounds are a celebration of Mediterranean living, with over twenty mature olive trees, a variety of fruit trees, a large swimming pool, and a barbecue terrace ideal for alfresco gatherings.