Global real estate agency Sotheby’s International Realty has released its annual Luxury Outlook report, providing a fascinating glimpse into global luxury residential property markets, changing buyer expectations, luxury real estate marketing trends, and economic headwinds impacting property investment.
A key finding of the luxury real estate report is how a US$84 trillion intergenerational wealth transfer will impact the real estate market coupled with a highly mobile HNW and UHNW population re-shaping traditional wealth hubs – you can read more about our insights on what the great wealth transfer means for luxury marketers.
Of note is the growth in luxury homes, up 65% according to J.P Morgan Private Bank, and the number of homes listed and sold for record-breaking prices. This is no doubt driven by the growing UHNW audience. According to Altrata’s latest World Ultra Wealth Report, the global UHNW population increased by 7.6 percent to 426,330 individuals, a 20% increase from five years earlier, fuelling the desire for luxury real estate. Or, to look at it another way, 70 UHNWIs were created daily.
The Luxury Outlook real estate report
Sotheby’s first introduced its Luxury Outlook report in 2021 and it has since become a vital tool for those seeking to understand the global luxury real estate market, including market indicators and trends that can support marketers in developing strategic real estate marketing campaigns.
The luxury real estate report draws on insights from Sotheby’s International Realty agents who specialise in properties in the US$10 million plus price category and insights from leading financial institutions, including J. P. Morgan Private Bank, Pricewaterhouse Coopers, and Henley & Partners.
As a leading luxury marketing agency, we have demonstrable expertise in the luxury real estate market supporting both local and international luxury agencies with strategic digital marketing real estate campaigns.
Top insights from Sotheby’s luxury real estate report include
– The global real estate market remains resilient thanks to positive gains in the stock market and stabilising inflation
– Proximity to nature, arts, and culture is profoundly shaping the tastes of emerging affluent buyers – known as the White Lotus effect
– The growing desire for branded residences demonstrates a growing trend for lifestyle preferences intertwined with real estate investments
– Generational shifts, including the great wealth migration, are changing traditional real estate purchasing habits
– New construction homes are growing, especially amongst wealthy Generation X
– An increasingly mobile UHNW population is creating new hubs for luxury property
– AI and social media have supercharged the business of real estate, including digital marketing for real estate
– Sustainable and hybrid homes are growing in popularity
Luxury real estate report 2025
The great wealth migration
Traditional wealth hubs are changing, driven by an increasingly mobile HNW and UHNW population. According to a report by UBS, one in 15 billionaires relocated to another country in 2024, while Henley & Partners notes that 128,000 HNWIs relocated. Key driving factors identified by Sotheby’s report are political climate, interest rates, inflation, and tax reform.
The biggest beneficiary was the United Arab Emirates, which welcomed a record-breaking 6,7000 HNW residents in 2024, followed by the US, Singapore, Canada, and Australia.
The UAE has seen a notable rise in ultra-luxurious properties, with Arabian Business reporting that more than 100 homes priced at US$10 million plus were sold during the first quarter of 2024. Our client, BBH Life, a luxury architecture and interior design studio, has seen the incredible rise in demand for ultra-luxurious properties in Dubai first-hand.
The great wealth transfer
The great wealth transfer will see an estimated $84 trillion in wealth transferred from the Silent Generation and Baby Boomers to younger generations, creating a new generation of ultra-wealthy individuals.
The luxury real estate report notes that Generation X is now the fastest-growing group of luxury home buyers, making up nearly 24% of property investors in 2024.
However, it’s important to note that this younger generation behaves differently to its predecessors, prioritising a lifestyle-first mentality. As a leading luxury marketing agency, we’ve been tracking the changing behaviour of the world’s wealthiest individuals to ensure we craft truly impactful marketing campaigns.
Furthermore, the great wealth transfer is also contributing to the growing number of HNW and UHNW women. Global Head of Citi Private Bank, Ida Liu, noted in the report that women will control more than 50% of international wealth in the next five years. This also supports our proprietary research, which highlights the importance of luxury brands tailoring their marketing to this highly emotionally aware and outgoing audience. Most notably, women now make up 20% of all property purchases, up from 11% in 1981.
Creating marketing campaigns that appeal to this younger – and increasingly female – wealthy generation will be crucial for luxury real estate brands wishing to capture the attention of this growing and highly affluent market.
Branded residences
The luxury real estate report noted an uptick in branded residences over the past few years, with the branded residential market valued at US$66 billion in 2024. A study published by Luxonomy highlighted that branded residences have grown 150% in the past decade. Demand for branded names with a historic legacy, such as Baccarat, particularly appeal, with properties selling for a premium, the Sotheby’s report noted.
This growth in branded residences is being driven by wealthy individuals’ desire for exclusivity, ultra-luxurious living spaces, and high-end amenities, including concierge services and wellness spaces that offer a lifestyle akin to living in a five-star hotel. Finally, ultra-wealthy individuals want turnkey properties that are move-in ready and are willing to pay a premium for it.
Our team has seen this desire for ultra-luxurious amenities first-hand through our work with our Monaco-based real estate clients, including La Costa Properties Monaco and Ageprim.
The White Lotus Effect and the growth of wellness real estate
The White Lotus Effect refers to the phenomenon where popular media, notably television series like HBO’s The White Lotus, significantly influence luxury real estate trends by spotlighting specific locations and lifestyles.
According to Sotheby’s luxury real estate report, this effect has led to increased interest among affluent, younger investors in timeless destinations such as Italy. These affluent individuals are drawn to Italy’s luxury lifestyle, historic buildings, rich culture, and the ability to embrace an element of self-sufficiency by owning an olive grove or vineyard, for example.
For instance, following the 2022 season of The White Lotus set in Sicily, there was a notable surge in property inquiries in the region, with some real estate agencies reporting a doubling of interest within two months. This trend underscores how media portrayals can shape real estate investment decisions, intertwining lifestyle preferences with property choices.
Social media and digital marketing for real estate
Social media has become a vital tool for luxury real estate agencies, especially in light of the great wealth transfer. Platforms like Instagram and TikTok are key tools for engaging with ultra-wealthy millennials and Gen Z.
A report by McKinsey & Company found that Millennials and Gen Z buy products four times more often on social media than older generations. The Sotheby’s report noted that some agents generate 75% to 90% of their sales from platforms like Instagram.
Other tools, such as virtual videos, are also vital for capturing the interest of digitally savvy wealthy property investors and should be used to complement both traditional and digital marketing campaigns.
“My clients are not on Instagram is a comment we hear often at Relevance,” says Rumble Romagnoli, CEO and founder of Relevance. “However the day of a luxury brand’s clients not being on social media or digitally aware is over. Even if there are still a few outliers, their heirs and advisors most certainly are digitally connected. Furthermore, the great wealth migration makes it paramount that luxury brands develop a robust digital presence for long-term growth now, ensuring they are primed to reach the new digitally-savvy generation. We have experience in working with prime and super prime real estate agencies delivering robust social media services and digital marketing strategies.”
How can Relevance’s digital real estate marketing experts help?
As a leading, full-service luxury marketing agency, we boast a wealth of expertise in the luxury real estate market and the HNW and UHNW audience. Our team of luxury real estate digital marketing experts embrace the latest AI tools and marketing insights with a human-centric philosophy to deliver incredible results. If you would like to learn more about our digital marketing services for real estate brands, contact us today.