Single Women and Millennials to Drive Luxury Real Estate in 2025
The luxury housing market is expected to stabilize in 2025, according to Sotheby’s International Realty’s 2025 Luxury Outlook report. While property values are unlikely to drop, the rapid price increases of recent years may slow. Experts describe the market as “more stable, with more balanced conditions,” though significant activity is happening beneath the surface.
Wealthy Buyers on the Move
Affluent individuals are relocating more than ever, with 135,000 high-net-worth individuals (HNWIs) projected to move to new countries in 2025, up from 128,000 in 2024. The United Arab Emirates (UAE), especially Dubai, is a major hotspot due to tax benefits, "golden visas," and a luxurious lifestyle. “These homes can easily command premiums upward of 25% for roughly the same size and quality as their unbranded counterparts,” said Chris Whitehead, managing partner at Dubai Sotheby’s International Realty.
In contrast, while the U.S. saw some major purchases by ultra-wealthy individuals, international buyer activity has slowed, hitting its lowest level since 2009. “In general, more stable inventory levels probably make buying more attractive,” said Bradley Nelson, Sotheby’s Chief Marketing Officer.
Younger Buyers, New Tastes
Millennials are entering the luxury market with fresh priorities, focusing on lifestyle and aesthetics over traditional status symbols. In Italy, the HBO series The White Lotus boosted demand for historic villas. “Immediately after the show’s second season aired, we had twice as many American and British buyers looking there,” said Diletta Giorgolo Spinolo of Italy Sotheby’s International Realty.
Social media is also transforming the market. “Today we have some agents that are generating 75% to 90% of their sales volume off of Instagram,” noted Nelson, highlighting the shift in how buyers and agents interact.
Gender Trends in Buying
More single women are entering the real estate market than ever before. In 1981, only 11% of homebuyers were women; by 2024, this figure had risen to 20%. “Single female buyers have confidence and a desire to purchase real estate outside of their romantic relationships,” said Nelson. These women see real estate as a reliable way to build wealth.
Even in luxury markets, many buyers rely on parental support. A report by Legal & General found that 42% of UK buyers under 55 used financing from their parents. This trend extends globally, with families in Latin America helping their children buy homes in cities like Madrid to pursue education or start businesses.
Stability and Opportunity
Natural disasters like the devastating Los Angeles wildfires have yet to significantly impact luxury markets. However, more balanced inventories in the U.S. could attract foreign buyers, as it becomes easier to secure properties.
As Nelson summed up: “This report is driven mostly by demographic changes, more than anything else.” Millennials, women, and international buyers are reshaping the future of luxury real estate, creating a market that blends stability with evolving demand.
Image source: sothebyrealty.com