Why Luxury Real Estate Continues to Outperform (Sotheby’s 2026 report)

Sotheby’s International Realty unveils 2026 Luxury Outlook Report: From multigenerational living and cryptocurrency to privacy, inventory and global events, the forces shaping luxury real estate are evolving faster than ever.

I am pleased to introduce the 2026 Luxury Outlook℠ report by Sotheby’s International Realty, an authoritative guide to the trends shaping the world’s most exclusive property markets.

Drawing on insights from leading financial voices and Sotheby’s International Realty affiliated agents worldwide, this year’s report delivers a comprehensive view of homebuyer motivations, real estate market sentiment and emerging opportunities for homebuyers and home sellers.

The report explores key themes influencing high-net-worth homeowners, including the rise of multigenerational living, evolving housing supply and the impact of major sporting events like the upcoming Winter Games on host markets. It also examines the shifting priorities around privacy and lifestyle and the growing influence of cryptocurrency in real estate transactions. These insights are designed to help you make confident decisions, whether you’re considering buying or selling a home.

Key findings featured in the report include:

• Luxury Real Estate Continues To Outperform – Luxury real estate continued to outperform the broader housing market in 2025, supported by sustained wealth creation, investment gains and buyers who are less constrained by interest rates and geography.
• First Mover Advantage Matters – According to Sotheby’s International Realty Chief Marketing Officer Bradley Nelson, both buyers and sellers should consider the “first mover advantage.” Those who act decisively when opportunities arise often achieve better outcomes than those waiting on the sidelines.
• Inventory Is Returning – Luxury inventory levels have largely returned to pre pandemic norms, creating a healthier and more balanced marketplace. In the United States, the supply of homes priced above $1 million is at its highest level since 2020, giving buyers more options than they have seen in years.
• Generational Wealth Is Reshaping Demand – A record $6 trillion in inherited wealth changed hands in 2025, helping fuel demand for luxury real estate worldwide. This transfer of wealth is expected to remain a significant driver of luxury housing activity for years to come. 
• Lifestyle, Privacy And Security Drive Decisions – Today’s affluent buyers are prioritizing more than location. Privacy, security, wellness amenities and lifestyle considerations increasingly influence purchasing decisions, from gated estates and branded residences to homes designed for multi-generational living.
• Global Events Create New Opportunities – Major international events such as the 2026 FIFA World Cup and the 2028 Los Angeles Olympics can generate increased visibility, infrastructure investment and long term real estate opportunities for host cities and surrounding markets.

You can view the report online by clicking the link below.

“click here” to read the 2026 Luxury Outlook report (I’ve written a Foreword on the high-end residential Market)