The fifth installment of the Luxury Outlook by Sotheby’s International Realty identifies emerging trends for the high-end real estate market, revealing insights on elite market shifts, HNWI migration patterns and much more
Sotheby’s International Realty recently released its 2025 Luxury Outlook report, which delves into emerging trends and key developments set to shape the global luxury real estate landscape in the coming year. The report highlights significant factors including how a $84tn intergenerational wealth transfer may affect the real estate market, where 135,000 high-net-worth individuals (HNWIs) are projected to relocate, and the profound impact of ‘Best Places to Live’ rankings on a city’s property values and inventory levels.
The 2025 Luxury Outlook report draws on insights from Sotheby’s International Realty agents worldwide who specialise in transactions in the over $10m price category. Their expertise is complemented by data from industry leaders including J.P. Morgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).
Key takeaways in the report include:
· The economy has largely normalised following the volatility of the pandemic years, which has led to adjustments in the property market. Overall, home sales volume in the U.S. in 2024 was a little behind 2023, but the upper brackets performed better than the average priced market.
· On January 7, 2025, devastating wildfires swept through Los Angeles County, California, destroying thousands of homes and businesses. J.P. Morgan economist Abiel Reinhart has predicted they may be the costliest climate disaster in U.S. history, which stems both from their size and the high value of the residential real estate they are destroying.
· The great wealth migration hit record levels in 2024 as an estimated 128,000 HNWIs migrated to new countries.
· By 2045, as much as $84tn will have flowed from the Silent Generation and Baby Boomers into the bank accounts of their children and grandchildren. In response, the luxury market is changing to reflect the tastes and preferences of younger generations.
· Women are coming into their own as independent homebuyers. Women’s presence in the high-end housing market is set to increase. Women are expected to be in charge of $34tn, or about 38% of all investable assets in the U.S. by 2030. Data from a March 2024 report from the Bank of America Institute indicates that the coming intergenerational wealth transfer “will contribute to women controlling more wealth than ever before.”
· Year after year, several cities consistently rank among the best places to live in the world. These lists can have genuine impacts on the cities they champion.
· Branded residences have existed for several decades but the trend notably picked up during 2020, according to global architecture firm WATG. Since then, the firm has tracked 84 new projects that have opened around the world. As of 2024, the global branded residential market is valued at $66bn.
· Buyers continue to seek homes that align with their personal aspirations and values. Trends such as hybrid working, heightened demand for wellness amenities, and sustainability are shaping the luxury housing market and influencing buyers’ decisions.
“Amidst an environment of high interest rates, global elections, and fluctuating economic markers in 2024, the luxury housing market is showing impressive adaptability to face the year ahead,” said Philip White, president and CEO, Sotheby’s International Realty. “Sotheby’s International Realty remains committed to providing consumers with timely information and guidance regarding their real estate portfolios.”
Click here to read the complete report.
On the market now
Coinciding with the release of the report Sotheby’s International Realty is excited to reveal two stunning properties new to the market.
Mansion house, London – on the market with Sotheby’s International Realty, UK
Located on Cowley Street in the heart of Westminster lies this exquisite residence. Originally designed by renowned London-born architect, Horace Field, it was reinstated as a private residence in 2017 and has been tastefully renovated to preserve its ornate historical features whilst seamlessly integrating modern amenities.
It features bespoke leisure facilities including a spa with its own gym, sauna, steam room, jacuzzi, patio garden and a 10-metre swimming pool, and is available to rent on a long or short-term basis. It is also crowned with a stunning private roof terrace, perfect for soaking up fresh air and admiring views across Big Ben, the House of Lords and Westminster Abbey.
4 Bedroom Mansion Villa, Souni, Limassol – on the market with Sotheby’s International Realty, Cyprus
This stylish estate is situated within the tranquil suburb of Souni in Limassol. Souni is based near the ancient kingdom of Kourion, and allegedly belonged to it: Souni is where the ancient city is believed to have obtained its drinking water, at least during the Roman era.
Filled with high security throughout, this property’s key features include a tennis court, a fully equipped gym, a bar, a children’s playground, a full-sized piano and a spacious covered pavilion with a sauna and hot tub, all adorned with natural stone. It also has an extensive office in the grounds.
Residents can unwind in the infinity pool with a built-in jacuzzi and dine al fresco by the barbecue area, which also features an outdoor fireplace.
The estate encompasses a spacious open plan living and dining area, a state-of-the-art kitchen, a cosy family room, a private office and exquisite chandeliers, simultaneously offering unparalleled comfort and luxury.
It also boasts a beautifully landscaped French-style garden with irrigation from its own water well, with a 30 sqm balcony offering stunning vistas of the garden and mountains. Currently listed at £5.49m.