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This Year’s Luxury Real Estate Surge Predicted to Be Fueled by Affluent Millennials and Single Women.

The Sotheby’s International Realty Luxury Outlook report for 2025 indicates that the global luxury real estate market is nearing a phase of stability.

“We don’t foresee a drop in property values for 2025, although growth may slow down,” states Bradley Nelson, the chief marketing officer who directed the report. “A comprehensive survey of leading agents worldwide reveals a rising sentiment towards market stability and favorable conditions,” despite significant underlying market factors.

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Interestingly, wealthy individuals are on the move. The SIR report cites a study by Henley & Partners predicting that 135,000 high-net-worth individuals are likely to move to new countries in 2025, an increase from 128,000 in 2024. The United Arab Emirates stands out as the premier destination, having attracted a record 6,700 new affluent residents in 2024, with more expected.

“It’s a desirable hub for wealth,” Nelson emphasizes, underlining migration trends from the UK, Europe, and beyond. Factors such as tax incentives, golden visas, and an attractive lifestyle in certain UAE areas—especially Dubai—are drawing considerable attention. Branded residences are notably in demand. “These properties can command premiums surpassing 25% compared to comparable unbranded properties,” notes Chris Whitehead, managing partner at Dubai Sotheby’s International Realty, in the report.

Conversely, while the US experienced the second-highest influx of wealthy homebuyers last year, it also had the lowest international buyer activity since 2009, according to SIR. From April 2023 to March 2024, international buyers purchased only 54,300 homes worth $42 billion, a significant drop from 2017’s figures, when foreign transactions totaled $153 billion involving 284,500 properties.

Nevertheless, Nelson highlights, “some high-value transactions have still occurred within this segment, emphasizing their continuing importance in the ultra-prime real estate market.”

In the United States, the recent devastating wildfires in Los Angeles, which affected around 12,000 properties, including numerous high-end single-family homes, are not anticipated to have immediate consequences on the housing market. “The LA fires are a tragedy, especially on a personal level,” Nelson notes. “However, it’s too soon to evaluate any effects on real estate. Most displaced families are currently focused on securing temporary housing.”

This year may witness a rise in foreign investments nationwide. Nelson states, “Stable inventory levels generally enhance the attractiveness of purchasing, particularly for international buyers. If homes sell in mere hours or days, it becomes exceedingly challenging for overseas buyers to view new listings.”

Evolving Buyer Dynamics

The profile of luxury buyers is undergoing transformation. As millennials increasingly enter the luxury market, their perspectives differ notably from older generations. “They emphasize a lifestyle-driven approach,” Nelson shares.

Brokers around the globe are observing a trend among younger buyers who prefer visually stunning, historic properties often inspired by pop culture.

For instance, in Italy, the report references “The White Lotus Effect,” as noted by Diletta Giorgolo Spinolo, head of residential at Italy Sotheby’s International Realty. Following the HBO series’ portrayal of breathtaking historic villas, she reported a doubling of interest from American and British buyers. She suggests that “younger generations view owning a piece of history as a status symbol. Television has certainly shaped their view of luxury.”

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In addition to changing preferences, these younger buyers are implementing different purchasing strategies compared to their predecessors. “Currently, some agents report that 75% to 90% of their sales volume stems from Instagram,” Nelson adds. “It’s remarkable to see how client relationships have evolved in just five years.”

Investment Trends

Although the profile of luxury buyers may be shifting, their financial resources largely remain unchanged: affluent buyers often depend on parental support.

The SIR report references findings from UK financial services firm Legal & General, which reveals that 42% of properties bought by individuals under 55 in the UK were funded by their parents. Paloma Pérez Bravo, CEO of VIVA Sotheby’s International Realty in Spain, has observed a similar trend. “People from various parts of Latin America, such as Mexico, Venezuela, and Miami, are helping their adult children to explore options in Madrid,” she notes.

Additionally, changes in gender dynamics among homebuyers are becoming apparent. Nelson cites research from the National Association of Realtors, showing that in 1981, women represented 11% of homebuyers, while couples comprised 73% of the market. By 2024, women constituted 20% of buyers, and couples accounted for 62% of the market.

“Single female buyers are increasingly confident and eager to purchase properties independently of their romantic partners,” Nelson emphasizes. “They recognize the wealth-building opportunities that real estate presents.” This trend is not confined to younger women; “older single women are also choosing to downsize into homes that better fit their needs,” as highlighted in the SIR report.

“Ultimately,” Nelson concludes, “this report illustrates demographic shifts as vital elements influencing the evolving market. This became evident throughout our analysis.”

© 2025 Bloomberg

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