The 2026 Luxury Outlook® delves into the pivotal, forward-looking issues shaping luxury residential property markets around the world.
Whether driven by economic opportunities or the desire for a lifestyle to share with friends and family, property purchases by high-net-worth individuals (HNWIs) in 2025, when the luxury real estate market outperformed the overall housing market, position the sector for continued strength, says Philip A. White Jr., president and CEO, Sotheby’s International Realty.
“The general real estate market was more impacted by elevated interest rates and affordability issues such as higher prices,” White says, “but the luxury real estate market is positioned for continued outperformance, building on 2025’s robust foundation, which included areas seeing increased inventory, growing international homebuyer activity and a larger percentage of all-cash sales, particularly at the higher end.”