Luxury Roundtable

Real estate

Growth in global luxury housing sector to continue defying broader market trends in 2025

January 6, 2025

Clean designs with creature comforts are much sort after in upscale houses globally. Image credit: Coldwell Banker Global Luxury Clean designs with creature comforts are much sort after in upscale houses globally. Image credit: Coldwell Banker Global Luxury

 

More luxury buyers are poised to re-enter the market with renewed confidence, displaying increased purchasing power and seeking a greater selection of desirable properties.

That positive outlook for luxury real estate in 2025 is reflected in Coldwell Banker Global Luxury’s Trend Report based on data and insights collected via a survey of Coldwell Banker Global Luxury agents, Institute for Luxury Home Marketing and Altrata’s Wealth-X.

Here, per the report, are the top five trends shaping the 2025 luxury real estate market:

The power of pent-up demand
Signs point to a more balanced market heading into 2025, due to lower mortgage rates and an uptick in inventory.

The luxury market saw single-family home sales in October 2024 surpass those of October 2023 by 7.2 percent, and sales in October were up 11.2 percent compared to September 2024.

Most respondents rated luxury market conditions for 2025 as good for both buyers (54.5 percent) and sellers (39.7 percent)

The quiet elite: The hidden power of women and the luxury latchkey generation
“She-elites” are shaping buying decisions, while Gen X’s strong liquidity is positioning them as a key force in the market.

Gen X luxury homeownership in 2024 jumped by 10 percent in the span of five years — more than any other age group.

Women with a net worth of $5 million or more now own 15.2 percent of luxury real estate in the U.S.

A majority (47.9 percent) of Coldwell Banker Global Luxury property specialists surveyed report an increase in first-time luxury homebuyers.

Home designs that nurture the soul
A shift towards authentic, personalized design is reshaping interior spaces in new and exciting ways, from style all the way to substance of materials and amenities.

Which of the following are the most popular wellness amenities for luxury consumers?

Spa-like primary bathroom: 74.5 percent

Fitness studios: 46.9 percent

Lush landscaping: 43.4 percent

Customized “retreat” spaces: 31.4 percent

Cleverly curated new construction
A new generation of residential developers is reshaping luxury living by prioritizing personalization and catering to the evolving values of discerning buyers.

Which of the following new luxury design features are most popular with your clients?

Indoor/outdoor merging: 59.9 percent

Flexible layouts: 45 percent

Minimalist aesthetics: 39.4 percent

Functional secondary spaces in kitchens: 26.3 percent

Sustainable/eco-friendly design: 20.8 percent

New hotspot drivers for the wealthy
A new wave of luxury hubs is emerging as high-net-worth individuals (HNWIs) seek out primary and secondary residences beyond traditional business-friendly luxury destinations such as New York, London and Paris.

Top 2025 relocation drivers:

Lower taxes

Economic opportunity

Lifestyle and culture

Climate

Value for money

Top 2025 global trend cities:

Dubai

Miami

Singapore

Lisbon

Melbourne

Top 2025 global trend cities in the U.S.:

Miami

Austin

West Palm Beach

Scottsdale

Houston

Please click or tap here to read The Trend Report 2025 from Coldwell Banker Global Luxury

We'll be discussing the luxury real estate market outlook Jan. 15 at our Luxury Outlook Summit in New York. Coldwell Banker Global Luxury's Michael Altneu will moderate a power panel among the 10 scheduled for the day. Only 9 days left to register – do join us and learn from the smartest luxury executives where luxury is headed