Fifth edition of the report reveals insights into US$84 trillion in intergenerational wealth transfers, changes in elite markets, and migration patterns of high-net-worth individuals
new york, January 23, 2025 /PRNewswire/ — Today, Sotheby’s International Realty released the 2025 Luxury Real Estate Outlook℠ report. This report delves into the emerging trends and key developments that will shape the global luxury real estate landscape in the coming year. The report explores how the US$84 trillion in intergenerational wealth transfers, with 135,000 high-net-worth individuals (HNWIs) immigrating, could impact the real estate market. It highlights important factors such as the significant impact that the ranking of “Best Places to Live” has on the world. City property values and inventory levels.
“When we launched our first Luxury Outlook Report in 2021, the definition of housing was undergoing a major shift due to the pandemic.With unprecedented changes in the real estate market, we are now able to provide real-time information from our report. The purpose of this report is to provide strategic insights to help clients make informed decisions regarding their investment portfolios. ,” said Bradley, chief marketing officer at Sotheby’s International. Nelson says. real estate. “As we move into 2025, the global luxury real estate market remains resilient. Our report provides an in-depth analysis of a number of indicators that validate experts’ predictions about the impending upturn in the real estate cycle. We provide.”
The 2025 Luxury Outlook Report is based on insights from Sotheby’s International Realty agents around the world who specialize in transactions in the USD 10 million and above price category. Their expertise is complemented by data from industry leaders such as JPMorgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).
Key takeaways from the report include:
After years of pandemic volatility, the economy has returned to near normalcy, leading to a correction in the real estate market. Overall, U.S. home sales volume in 2024 lagged slightly behind 2023, but the top tier performed better than average-priced markets. On January 7, 2025, a devastating wildfire tore through Los Angeles County, California, destroying thousands of homes and businesses. . JPMorgan economist Abiel Reinhart predicts that the climate disaster could be the costliest climate disaster in U.S. history. This is due both to its size and the high value of the residential properties being destroyed. Large-scale wealth flows reached record levels with an estimated 128,000 people in 2024. Wealthy people move to new countries. By 2045, $84 trillion will flow from the Silent Generation and Baby Boomers into their bank accounts and their children and grandchildren. Correspondingly, the luxury market is changing to reflect the tastes and preferences of younger generations, and women are becoming more independent as independent homebuyers. The presence of women in the luxury housing market will continue to grow. By 2030, women are expected to be responsible for US$34 trillion, or approximately 38% of all investable assets in the United States. Future intergenerational wealth transfers “will benefit women,” according to data from the Bank of America Institute’s March 2024 report.Each year, several cities rank among the world’s best places to live. It is ranked in the top of the list. These lists can have real impact on the cities they champion. Branded homes have been around for decades, but the trend accelerated markedly in 2020, according to global architecture firm WATG. Since then, the company has tracked 84 new projects launched around the world. As of 2024, the global branded housing market will be worth USD 66 billion. Buyers continue to seek homes that align with their personal aspirations and values. Trends such as hybrid work, increased demand for wellness amenities, and sustainability are shaping the luxury housing market and influencing buyer decisions.
Philip White, president and CEO of Sotheby’s International Realty, said: “The luxury housing market is poised for next year in an environment of high interest rates, global elections, and fluctuating economic indicators in 2024. “They have shown remarkable adaptability.” “Sotheby’s International Realty remains committed to providing consumers with timely information and guidance about their real estate portfolios.”
Click here to read the full report.
Sotheby’s International Realty
Sotheby’s International Realty was founded in 1976 as a real estate service for the discerning clientele of Sotheby’s auction house. Today, the firm’s global footprint includes more than 1,100 offices in 83 countries and territories around the world, including 48 proprietary brokerage offices in major metropolitan and resort markets. In February 2004, Anywhere Real Estate Inc. entered into a long-term strategic partnership with auction house operator Sotheby’s. The agreement provided for the licensing of the Sotheby’s International Realty name and the development of a franchise system. A franchise system consists of a network of franchised stores, each of which is independently owned and operated. Sotheby’s International Realty supports its affiliates and agents with a number of operational, marketing, recruiting, educational and business development resources. Affiliates and agents also benefit from our affiliation with the historic Sotheby’s auction house, which was founded in 1744. For more information, please visit www.sothebysrealty.com.
The affiliate network is operated by Sotheby’s International Realty Affiliates, LLC and the Company-owned brokerage is operated by Sotheby’s International Realty, Inc. Both companies are subsidiaries of Anywhere Real Estate Inc. (NYSE: HOUS), a global leader in real estate franchises and providers. We provide real estate brokerage, relocation, and payment services. Both Sotheby’s International Realty Affiliates LLC and Sotheby’s International Realty, Inc. fully support the principles of the Fair Housing Act and the Equal Opportunity Act.
Media contact:
christina helb
Vice President of Global Communications
Kristina.helb@sothebys.realty
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SOURCE Sotheby’s International Realty
