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Recent positive developments in the luxury market, including lower interest rates, increased inventory, and improving overall market conditions, have luxury real estate experts looking forward to a strong new year.
This is according to Coldwell Banker Global Luxury’s “The Trend Report 2025,” which found that 85.5 percent of Coldwell Banker Global Luxury Real Estate Specialists believe market conditions are “good” or “fair” for buyers. It states that. On the seller side, 74.5% of the company’s luxury goods distributors reported similarly favorable market conditions.
Coldwell Banker Global Luxury’s annual report, released Monday, features insights from the Luxury Home Marketing Institute, Wealth Contains knowledge.
“In addition to the positive momentum we began to see at the end of 2024, this year’s Trends Report highlights several potential disruptors that could further guide the direction of the market in 2025, including demographic influences and high net worth growth.” ,” said Michael Altnew, vice president. Coldwell Banker’s President of Global Luxury stated in the report:
“While the trends we have selected offer different perspectives on buying and selling luxury real estate, they all point in the same direction. The luxury segment is expected to continue to be a shining star in the real estate world.”
Specifically, Coldwell Banker Luxury Agents expects pent-up demand. “Her elite”, i.e. wealthy women. A unique house. New hotspot. We’ve selected new construction trends and more that will impact the luxury market in 2025.
pent-up demand
As the dust settles on the Fed’s interest rate cuts in the second half of 2024 and new regulations for real estate agents, wealthier buyers and sellers will return to the market that paused in 2024, according to a Coldwell Banker report. In 2025, this could spur entry and reinvigorate luxury goods activity.
The majority of Coldwell Banker Global Luxury agents say market conditions in the region look “good” or “fair” in 2025, with buyers looking to buy more due to lower mortgage rates. He said he expects the situation to improve from 2024 as it secures inventory and provides more purchasing power. Luxury buyers who choose to finance their homes.
Assuming luxury customers are tempted to jump back into the market with increasing enthusiasm this year, that pent-up demand could lead to increased competition for desirable properties and push prices higher. That said, luxury goods experts predict a more balanced market will emerge in 2025, with increased inventories and sales.
“Her Elite” and other silent forces
While attention to emerging luxury customers in recent years has focused primarily on demographics such as Millennials, Gen Z, and the not-yet-wealthy high-income group (the “Henries”), there is a growing potential for women and Gen Wealth will have a huge impact on the world. The Coldwell Banker report noted that real estate will increase in the coming years.
Gen states.
Wealthy women are also becoming “the new face of wealth,” according to a McKinsey & Company report cited by Coldwell Banker. Because many women tend to be younger and have longer life expectancies than their male spouses, they are also better equipped to inherit their husbands’ assets.
A 2020 McKinsey report states, “By 2030, American women are expected to control much of the $30 trillion in financial assets held by baby boomers, which is more than the annual GDP of the United States.” “This is a potential wealth transfer of a magnitude approaching that of the United States.”
In addition to wealth transfers, women are increasingly becoming the primary breadwinners for their families, with women in technology and finance leading the way, according to a Coldwell Banker report.
While men between the ages of 35 and 64 still own 59% of luxury homes in the U.S., single women from Millennials and Gen Z are significantly increasing luxury home ownership. According to a 2023 study by Luxury Portfolio International, 54 percent of luxury homeowners under the age of 35 are women.
unique house
Coldwell Banker said luxury home buyers will move away from clinical perfection in 2025 and aim for more personalized home designs. Rather, the focus will shift to “high-quality craftsmanship, authentic materials, indoor-outdoor fusion, and traditional items,” according to the trend report.
Warm modernism, flexible layouts, hidden technology and wellness amenities are all part of the trend, as are spa-like master bathrooms and lush landscaping.
“This anything-goes ethos, rooted in principles of slow design and quiet luxury, is more of an ‘anti-trend’ than a trend,” the report said.
new hotspot
According to a report from Coldwell Banker Global Luxury, there are a number of factors that are driving wealthy people to explore luxury destinations away from traditional business centers such as London, Paris and New York.
Tax breaks, economic opportunity, security and freedom, lifestyle and culture, climate, and value are all desirable characteristics that draw luxury homebuyers to a new area. Attractive tax policies and reforms have led some luxury buyers to look to Florida, Texas, Dubai, Singapore, Indonesia, Malaysia and Portugal as attractive investment destinations. Meanwhile, economic opportunities in the growing Asia-Pacific and Middle East markets are drawing buyers to these regions of the world.
Melbourne, Lisbon and Miami are emerging as cultural destinations, with the latter two also boasting a pleasant climate.
Trends in new construction construction
Developers are ramping up sales of luxury homes to meet buyer demand, and the trend is likely to continue until 2025, the trend report said.
“Moving beyond mass-market appeal, these innovators are focusing on luxury condos, boutique residential projects, and lifestyle-focused spec homes that cater to a specific affluent buyer group and their growing wish list. ” states the report.
From top-of-the-line condominium amenities to eco-friendly innovations, climate protection, and highlighting and restoring the original features of older properties, developers are leaving no stone unturned to create customized luxury living experiences.
“Developers likely to be most successful this year are those pursuing a selective approach that tailors new construction projects to specific buyer segments,” the trend report states.
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Email Lillian Dickerson
