Luxury Outlook 2026

Luxury real estate: why the market will move differently in 2026

The global luxury real estate market continues to demonstrate remarkable resilience. While traditional real estate is increasingly affected by economic cycles, the high-end segment continues to grow, both in value and transaction volume. The outlook for 2026 confirms this enduring trend.

Two markets, two dynamics

Recent analyses highlight an unavoidable reality: there are now two distinct real estate markets. On one hand, the general market, more sensitive to interest rates, economic policies, and local constraints. On the other, the luxury market, driven by an international, mobile clientele, less exposed to macroeconomic pressures.

This segmentation is also observed in other economic sectors, such as finance or air transport, where premium offerings show stronger growth. In real estate, this dynamic is supported by a solid economic base and ongoing wealth creation, particularly through real estate and financial investments.

A more balanced and healthier market

Good news for both buyers and sellers: supply levels have returned to pre-pandemic levels. This rebalancing favors a more fluid market, with more options and more sustainable long-term conditions.

In this context, one strategy stands out: the “first mover advantage.” Actors who quickly adjust their strategy—whether in pricing or purchasing decisions—are often the ones capturing the most opportunities.

Acting at the right time: a key lever

For sellers, this means adopting realistic, rather than speculative, pricing to avoid prolonged holding costs.
For buyers, it sometimes means quickly seizing rare opportunities. The recent example of an $87.5 million penthouse in New York’s West Village perfectly illustrates this logic: a historic transaction, set to become a market benchmark.

New priorities of wealthy buyers

Beyond the numbers, the report highlights a profound shift in luxury buyers’ expectations. Security, privacy, and energy autonomy are becoming central criteria in the design of luxury residences.

Furthermore, the rise of multigenerational living reflects a broader approach to wealth: it’s no longer just about living better, but also about passing on assets, planning ahead, and building a lasting family legacy.

A global perspective for informed decisions

Thanks to its international network, Sotheby’s International Realty enjoys a unique view of global trends, from North America to the Middle East. This local expertise combined with a global market perspective allows buyers to make strategic choices aligned with both their lifestyle and wealth objectives.

Luxury real estate: a lifestyle choice above all

More than an investment, luxury real estate embodies a way of life. Every acquisition reflects personal, family, and emotional aspirations, shaped by experiences, services, and the quality of life offered by each destination.

Download the report (EN)