Sotheby’s 2026 Luxury Outlook Report
The Sotheby’s International Realty 2026 Luxury Outlook Report delves into the pivotal, forward-looking issues shaping luxury residential property markets around the world.
The latest luxury real estate outlook highlights a market that continues to outperform traditional real estate, with luxury properties leading in both sales and value growth in 2025—and momentum expected to carry into 2026. The report underscores a growing divide between the general housing market and the luxury sector, noting that high-end real estate benefits from a stronger economic foundation and greater resilience during periods of volatility.
Luxury buyers remain less influenced by geography and macroeconomic pressures, driven instead by sustained global wealth creation through real estate and equity markets. Encouragingly, inventory levels have rebounded to pre-pandemic norms, creating a more balanced and sustainable market with expanded choice for buyers.
A key theme is the importance of “first-mover advantage.” Developers, sellers, and buyers who act decisively—particularly those who adjust pricing early or move quickly on rare opportunities—often set market momentum. For sellers, this means pricing realistically rather than holding out and absorbing long-term carrying costs. For buyers, it can mean securing once-in-a-generation properties before competition intensifies.
Beyond pricing and performance, the report explores broader forces shaping luxury real estate decisions, including political and economic policy, cryptocurrency, shifting inventory levels, and the long-term impact of global sporting events on host cities. Design priorities are also evolving, with increased emphasis on privacy, security, and resilience features such as backup power systems.
The report also points to a rise in multigenerational living among affluent households, reflecting a blend of lifestyle preferences, estate planning, and legacy building. With its global network, Sotheby’s International Realty provides insight into how these trends are playing out across markets—from emerging developments to established luxury hubs—helping buyers make informed, lifestyle-driven decisions wherever they choose to invest.
Ultimately, luxury real estate is about more than financial performance. It reflects how today’s wealthy buyers define quality of life, long-term security, and the experiences they want to create for themselves and their families.
Read the complete Outlook Report.