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SOTHEBY'S INTERNATIONAL REALTY RELEASES 2025 LUXURY OUTLOOK REPORT, IDENTIFYING EMERGING TRENDS FOR HIGH-END REAL ESTATE MARKET

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Sotheby's International Realty has released its 2025 Luxury Outlook report, highlighting key trends in the global luxury real estate market. The report focuses on a projected US$84 trillion intergenerational wealth transfer from Silent Generation and Baby Boomers to younger generations, and the migration of 135,000 high-net-worth individuals (HNWIs).

Key findings include: the U.S. luxury market outperformed average-priced segments in 2024; devastating wildfires in Los Angeles County may become the costliest climate disaster in U.S. history; women are expected to control US$34 trillion (38%) of U.S. investable assets by 2030; and the global branded residential market is valued at US$66 billion. The report emphasizes continued demand for wellness amenities and sustainability in luxury housing.

Sotheby's International Realty ha pubblicato il rapporto 2025 Luxury Outlook, evidenziando le principali tendenze nel mercato globale degli immobili di lusso. Il rapporto si concentra su un previsto trasferimento di ricchezza intergenerazionale di 84 trilioni di dollari statunitensi dalla Silent Generation e dai Baby Boomers alle generazioni più giovani, oltre alla migrazione di 135.000 individui ad alto patrimonio netto (HNWIs).

I risultati chiave includono: il mercato del lusso negli Stati Uniti ha sovraperformato i segmenti a prezzo medio nel 2024; gli devastanti incendi boschivi nella contea di Los Angeles potrebbero diventare il disastro climatico più costoso nella storia degli Stati Uniti; si prevede che le donne controllino 34 trilioni di dollari statunitensi (38%) delle attività investibili negli Stati Uniti entro il 2030; e il mercato globale degli immobili residenziali a marchio è valutato 66 miliardi di dollari. Il rapporto sottolinea il continuo interesse per le amenità legate al benessere e la sostenibilità negli alloggi di lusso.

Sotheby's International Realty ha lanzado su informe Luxury Outlook 2025, destacando las tendencias clave en el mercado global de bienes raíces de lujo. El informe se centra en una transferencia de riqueza intergeneracional proyectada de 84 billones de dólares estadounidenses de la Generación Silenciosa y los Baby Boomers a las generaciones más jóvenes, así como en la migración de 135,000 individuos de alto patrimonio neto (HNWIs).

Los hallazgos clave incluyen: el mercado de lujo en EE. UU. superó los segmentos de precios promedio en 2024; los devastadores incendios forestales en el condado de Los Ángeles podrían convertirse en el desastre climático más costoso en la historia de EE. UU.; se espera que las mujeres controlen 34 billones de dólares (38%) de los activos invertibles en EE. UU. para 2030; y el mercado global de residencias de marca está valorado en 66 mil millones de dólares. El informe enfatiza la demanda continua de servicios de bienestar y sostenibilidad en la vivienda de lujo.

Sotheby's International Realty는 2025년 럭셔리 전망 보고서를 발표하였으며, 글로벌 럭셔리 부동산 시장의 주요 트렌드를 강조합니다. 이 보고서는 8.4억 달러의 세대 간 부의 이전에 초점을 맞추고 있으며, 이는 조용한 세대와 베이비 붐 세대에서 젊은 세대로 이전되는 것을 나타냅니다. 또한, 135,000명의 고액 자산가(HNWI)의 이주도 포함합니다.

주요 발견 사항에는 다음이 포함됩니다: 2024년 미국 럭셔리 시장은 평균 가격대의 세그먼트보다 우수했고; 로스앤젤레스 카운티에서 발생한 파괴적인 산불은 미국 역사상 가장 비용이 많이 드는 기후 재해가 될 수 있으며; 여성들은 2030년까지 미국의 투자 가능한 자산의 34조 달러(38%)를 통제할 것으로 예상되고; 글로벌 브랜드 주거 시장은 660억 달러로 평가됩니다. 이 보고서는 럭셔리 주택에서 웰니스 편의시설 및 지속 가능성에 대한 지속적인 수요를 강조합니다.

Sotheby's International Realty a publié son rapport 2025 Luxury Outlook, mettant en lumière les tendances clés du marché mondial de l'immobilier de luxe. Le rapport se concentre sur un transfert de richesse intergénérationnelle projeté de 84 trillions de dollars américains de la Génération Silencieuse et des Baby Boomers vers les générations plus jeunes, ainsi que sur la migration de 135 000 individus fortunés (HNWIs).

Les principales conclusions comprennent : le marché du luxe aux États-Unis a surperformé les segments de prix moyen en 2024 ; les incendies de forêt dévastateurs dans le comté de Los Angeles pourraient devenir la catastrophe climatique la plus coûteuse de l'histoire des États-Unis ; on s'attend à ce que les femmes contrôlent 34 trillions de dollars (38 %) des actifs investissables aux États-Unis d'ici 2030 ; et le marché mondial des résidences de marque est évalué à 66 milliards de dollars. Le rapport souligne la demande continue pour des commodités liées au bien-être et à la durabilité dans le logement de luxe.

Sotheby's International Realty hat seinen Bericht 2025 Luxury Outlook veröffentlicht, der wichtige Trends auf dem globalen Luxusimmobilienmarkt hervorhebt. Der Bericht konzentriert sich auf einen prognostizierten intergenerationalen Vermögenstransfer von 84 Billionen US-Dollar von der Silent Generation und den Baby Boomern an jüngere Generationen sowie auf die Migration von 135.000 wohlhabenden Individuen (HNWIs).

Zu den wichtigsten Ergebnissen gehören: Der Luxusmarkt in den USA übertraf 2024 die durchschnittlich preiswerten Segmente; verheerende Waldbrände im Los Angeles County könnten zur kostspieligsten Klimakatastrophe in der Geschichte der USA werden; es wird erwartet, dass Frauen bis 2030 34 Billionen US-Dollar (38%) der investierbaren Vermögenswerte in den USA kontrollieren; und der globale Markt für markenrechtlich geschützte Wohnimmobilien ist mit 66 Milliarden US-Dollar bewertet. Der Bericht betont die anhaltende Nachfrage nach Wellness-Annehmlichkeiten und Nachhaltigkeit im Luxuswohnungsbau.

Positive
  • Luxury market segment outperformed average-priced market in 2024
  • Women's growing presence in high-end housing market, controlling US$34 trillion by 2030
  • Global branded residential market valued at US$66 billion
  • Network expansion to more than 1,100 offices in 83 countries
Negative
  • Overall home sales volume in 2024 declined compared to 2023
  • Los Angeles wildfires potentially becoming costliest climate disaster in U.S. history

Insights

The 2025 Luxury Outlook report presents several strategic implications for Anywhere Real Estate Inc. (HOUS) and the luxury real estate sector. The projected US$84 trillion intergenerational wealth transfer represents a pivotal market transformation, with younger generations' preferences reshaping luxury real estate dynamics.

Three key developments warrant attention:

  • The branded residences market, valued at US$66 billion, has seen remarkable growth with 84 new projects since 2020. This trend positions Sotheby's International Realty advantageously given its brand heritage and global network of 1,100+ offices.
  • The acceleration of HNWI migration, with 128,000 relocations in 2024, creates substantial transaction opportunities in premier markets. This mobility trend particularly benefits established luxury brokers with international reach.
  • Women's growing influence in the luxury market, projected to control 38% of U.S. investable assets by 2030, signals a strategic shift in targeting and service delivery approaches.

The upper bracket market's outperformance versus average-priced segments demonstrates resilience in luxury real estate, though climate risks, as evidenced by the Los Angeles wildfires, present emerging challenges for property valuations and market stability.

For HOUS, Sotheby's International Realty's strategic positioning in the luxury segment provides a competitive advantage during market transitions. The franchise model offers scalability while maintaining brand prestige, important for capturing opportunities from wealth transfer and HNWI migration patterns.

Fifth Installment of Report Reveals Insights on the US$84 Trillion Intergenerational Wealth Transfer, Elite Market Shifts, and High-Net-Worth Individual Migration Patterns

NEW YORK, Jan. 23, 2025 /PRNewswire/ -- Today, Sotheby's International Realty released its 2025 Luxury Outlook℠ report, which delves into emerging trends and key developments set to shape the global luxury real estate landscape in the coming year. The report highlights significant factors including how a US$84 trillion intergenerational wealth transfer may affect the real estate market, where 135,000 high-net-worth individuals (HNWIs) are projected to relocate, and the profound impact of "Best Places to Live" rankings on a city's property values and inventory levels.

"When we first introduced the Luxury Outlook report in 2021, the definition of home was undergoing a seismic shift because of the pandemic. Unprecedented changes in the real estate market created a critical need to provide our clients with timely intelligence informed in real time by our unparalleled network of global real estate advisors. Our goal with this report is to deliver strategic insights so that clients can make informed decisions in their investment portfolios," said Bradley Nelson, chief marketing officer, Sotheby's International Realty. "As we enter 2025, the global luxury property market remains resilient. Our report provides an in-depth analysis of the many indicators that validate experts' forecasts of an impending real estate cycle upturn."

The 2025 Luxury Outlook report draws on insights from Sotheby's International Realty agents worldwide who specialize in transactions in the US$10M+ price category. Their expertise is complemented by data from industry leaders including J.P. Morgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).

Key takeaways in the report include:

  • The economy has largely normalized following the volatility of the pandemic years, which has led to adjustments in the property market. Overall, home sales volume in the U.S. in 2024 was a little behind 2023, but the upper brackets performed better than the average priced market.
  • On January 7, 2025, devastating wildfires swept through Los Angeles County, California, destroying thousands of homes and businesses. J.P. Morgan economist Abiel Reinhart has predicted they may be the costliest climate disaster in U.S. history, which stems both from their size and the high value of the residential real estate they are destroying.
  • The great wealth migration hit record levels in 2024 as an estimated 128,000 HNWIs migrated to new countries.
  • By 2045, as much as US$84 trillion will have flowed from the Silent Generation and Baby Boomers into the bank accounts of their children and grandchildren. In response, the luxury market is changing to reflect the tastes and preferences of younger generations.
  • Women are coming into their own as independent homebuyers. Women's presence in the high-end housing market is set to increase. Women are expected to be in charge of US$34 trillion, or about 38% of all investable assets in the U.S. by 2030. Data from a March 2024 report from the Bank of America Institute indicates that the coming intergenerational wealth transfer "will contribute to women controlling more wealth than ever before."
  • Year after year, several cities consistently rank among the best places to live in the world. These lists can have genuine impacts on the cities they champion.
  • Branded residences have existed for several decades but the trend notably picked up during 2020, according to global architecture firm WATG. Since then, the firm has tracked 84 new projects that have opened around the world. As of 2024, the global branded residential market is valued at US$66 billion.
  • Buyers continue to seek homes that align with their personal aspirations and values. Trends such as hybrid working, heightened demand for wellness amenities, and sustainability are shaping the luxury housing market and influencing buyers' decisions.

"Amidst an environment of high interest rates, global elections, and fluctuating economic markers in 2024, the luxury housing market is showing impressive adaptability to face the year ahead," said Philip White, president and CEO, Sotheby's International Realty. "Sotheby's International Realty remains committed to providing consumers with timely information and guidance regarding their real estate portfolios."

Click here to read the complete report.

Sotheby's International Realty

Sotheby's International Realty was founded in 1976 as a real estate service for discerning clients of Sotheby's auction house. Today, the company's global footprint spans more than 1,100 offices located in 83 countries and territories worldwide, including 48 company-owned brokerage offices in key metropolitan and resort markets. In February 2004, Anywhere Real Estate Inc. entered a long-term strategic alliance with Sotheby's, the operator of the auction house. The agreement provided for the licensing of the Sotheby's International Realty name and the development of a franchise system. The franchise system is comprised of an affiliate network, where each office is independently owned and operated. Sotheby's International Realty supports its affiliates and agents with a host of operational, marketing, recruiting, educational and business development resources. Affiliates and agents also benefit from an association with the venerable Sotheby's auction house, established in 1744. For more information, visit www.sothebysrealty.com.

The affiliate network is operated by Sotheby's International Realty Affiliates LLC, and the company owned brokerages are operated by Sotheby's International Realty, Inc.  Both entities are subsidiaries of Anywhere Real Estate Inc. (NYSE: HOUS) a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement 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:
Kristina Helb
Vice President of Global Communications
Kristina.helb@sothebys.realty

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SOURCE Sotheby’s International Realty

FAQ

What is the projected intergenerational wealth transfer mentioned in Sotheby's 2025 Luxury Outlook report?

According to the report, approximately US$84 trillion will transfer from the Silent Generation and Baby Boomers to their children and grandchildren by 2045.

How many high-net-worth individuals migrated globally in 2024?

An estimated 128,000 high-net-worth individuals (HNWIs) migrated to new countries in 2024, reaching record levels.

What is the current value of the global branded residential market?

As of 2024, the global branded residential market is valued at US$66 billion, with 84 new projects opened worldwide since 2020.

How much wealth are women expected to control in the U.S. by 2030?

Women are projected to control US$34 trillion, representing approximately 38% of all investable assets in the U.S. by 2030.

How did the luxury real estate market perform compared to average-priced homes in 2024?

The upper brackets of the real estate market performed better than the average-priced market, despite overall home sales volume being lower than 2023.

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