PR Newswire
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
[email protected]
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SOURCE Sotheby’s International Realty
