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
