S
otheby's International Realty has released its 2025 Luxury Outlook report, highlighting key trends and developments that will shape the global luxury real estate market in the coming year. The report explores how an $84 trillion intergenerational wealth transfer may impact the market, with 135,000 high-net-worth individuals projected to relocate.

    According to Bradley Nelson, chief marketing officer at Sotheby's International Realty, "Our goal is to deliver strategic insights so that clients can make informed decisions in their investment portfolios." The report draws on expertise from Sotheby's agents worldwide and data from industry leaders such as J.P. Morgan Private Bank and PricewaterhouseCoopers.

    Key takeaways include:

    * The economy has largely normalized following the pandemic, leading to adjustments in the property market.

    * Home sales volume in the US was slightly behind 2023 levels, but upper-bracket markets performed better than average-priced markets.

    * Devastating wildfires in Los Angeles County may be the costliest climate disaster in US history, with significant impacts on residential real estate.

    The great wealth migration hit record levels in 2024, with an estimated 128,000 high-net-worth individuals migrating to new countries. By 2045, $84 trillion will have flowed from the Silent Generation and Baby Boomers into the bank accounts of their children and grandchildren, changing the luxury market to reflect younger generations' tastes.

    Women are increasingly becoming independent homebuyers, with women's presence in the high-end housing market set to increase. Women are expected to control 38% of all investable assets in the US by 2030, contributing to a significant shift in wealth distribution.

    Cities consistently ranking among the best places to live can have genuine impacts on property values and inventory levels. Branded residences continue to grow in popularity, with the global market valued at $66 billion as of 2024.

    Buyers are seeking homes that align with their personal aspirations and values, driving trends such as hybrid working, wellness amenities, and sustainability in the luxury housing market. Amidst economic uncertainty, the luxury housing market is showing impressive adaptability, according to Philip White, president and CEO at Sotheby's International Realty.