T
he Coldwell Banker Global Luxury 2025 Mid-Year Report highlights the five biggest trends shaping today's luxury real estate market. According to the report, affluent homebuyers continue to view real estate as a key investment in their financial portfolios but have become more selective and less willing to compromise on their purchases.

    Luxury homebuyers are prioritizing practical considerations such as home affordability, tax strategy, estate planning, and long-term investment potential over flashy amenities or trophy locations. This shift is reflected in the "no-compromise buyer" trend, where 30% of Coldwell Banker Luxury Property Specialists identified this mindset as the top current trend.

    The report also notes that escalating home prices have turned ordinary homeowners into luxury buyers by default, with many entering the market for the first time driven by significant gains in home equity over the past five years. Additionally, a growing number of ultra-high net worth individuals are building real estate portfolios and paying all cash specifically to acquire hard assets independent of market swings.

    The luxury sector remains resilient, with sustained strength in both property values and buyer demand despite broader economic uncertainty. Luxury single-family home inventory has surged 19.6%, and attached property inventory is up 14.8% compared to 2024. Sold prices for single-family homes have increased 1.8% year-over-year and 8.0% compared to 2023.

    The five emerging luxury real estate trends for 2025 are:

    1. Real estate remains a cornerstone of wealth strategy, with nearly 7 in 10 Coldwell Banker Luxury Property Specialists saying their affluent clients are maintaining or expanding their current real estate exposure.

    2. The "no-compromise buyer" trend prioritizes practical considerations over aesthetic perfection.

    3. Move-up buyers enter the luxury market as escalating home prices turn ordinary homeowners into luxury buyers by default.

    4. The ultra-wealthy vs. aspirational buyer split widens, with ultra-high net worth buyers remaining active and pursuing second and third homes, while those with a net worth between $1M and $5M are more cautious.

    5. Cash purchases prevail as a "safe haven" strategy, with 96% of Coldwell Banker Luxury Property Specialists reporting luxury buyers maintaining or increasing their use of cash purchases.

    The full Mid-Year Report is available on the Coldwell Banker Global Luxury website.