The luxury real estate market is a dynamic and rapidly evolving space, driven by changing consumer preferences, technological advancements, and shifting lifestyle priorities. According to real estate experts, the top trends shaping the luxury real estate market in 2025 are:

• Sellers need to be bold and realistic about pricing and marketing their properties.
• The ultra-wealthy and aspirational buyers are split, with ultra-high net worth buyers pursuing second and third homes, while those with net worth between $1M to $5M are more cautious and seeking deals.
• Emerging and re-emerging markets are creating new opportunities for luxury real estate investors.
• Cash purchases are becoming the norm, with 96 percent of luxury buyers maintaining or increasing their use of cash purchases.
• Move-up buyers are flooding the luxury market, driven by inflation and rising home prices.
• Female buyers are increasingly influential in the luxury real estate market.
• Luxury buyers are prioritizing value creation over aesthetic perfection, adopting a “smart luxury” mindset.
• Multigenerational living is on the rise, with buyers seeking luxury homes with flexible layouts and amenities.
• Real estate design trends are shifting towards personalization, minimalism, and flexibility, with a focus on sustainability and hotel-like amenities.

According to Tammy Fahmi, senior vice president of global servicing and strategy at Sotheby’s International Realty, the real estate market is experiencing a period of significant transformation, driven by evolving buyer preferences, technological innovation, and shifting lifestyle priorities. “These trends reflect not just current market conditions but point toward the future of homeownership and living preferences across all price points.”

Michael Altneu, vice president of the Coldwell Banker Global Luxury program, highlights the importance of being bold and realistic in the current market. “Putting a for-sale sign in your yard and waiting for offers to come won’t cut it anymore. The market is balancing, and home sellers need a plan. Competitive pricing, personalized sale terms, and strategic marketing are helping sellers actually move their homes as the market shifts toward buyers.”

Altneu emphasizes the need for sellers to be adaptable and open to new ideas. “Appropriate pricing is more crucial than ever. Now that the market is settling into its post-pandemic state, buyers are less likely to overpay. Competitive pricing is key to attracting buyers and securing a sale.”

In contrast, ultra-high net worth buyers are more active and are pursuing second and third homes, while those with net worth between $1M to $5M are more cautious and seeking deals. According to Altneu, one in five Coldwell Banker Luxury Property Specialists report significant differences between these two groups. Emerging and re-emerging markets are also creating new opportunities for luxury real estate investors. Salt Lake City, Utah, and San Francisco are making waves in the real estate world, driven by lifestyle-focused markets and investments by notable companies, luxury brands, and celebrities. Cash purchases are becoming the norm, with 96 percent of luxury buyers maintaining or increasing their use of cash purchases. According to Altneu, this reflects real estate’s historically low correlation with stocks and its role as a strategic diversification tool. Move-up buyers are flooding the luxury market, driven by inflation and rising home prices. According to Altneu, nearly half of Coldwell Banker Luxury Property Specialists have seen increased demand from Gen X buyers in the “sandwich generation” looking for luxury homes with flexible layouts and amenities. Female buyers are increasingly influential in the luxury real estate market, with 21 percent of Coldwell Banker Luxury Property Specialists saying women are the primary decision makers when it comes to buying a luxury home. Luxury buyers are prioritizing value creation over aesthetic perfection, adopting a “smart luxury” mindset. According to Altneu, 30 percent of Coldwell Banker Luxury Property Specialists identified this “no-compromise” mindset as the top trend. Multigenerational living is on the rise, with buyers seeking luxury homes with flexible layouts and amenities. According to Altneu, nearly half of Coldwell Banker Luxury Property Specialists have seen increased demand from Gen X buyers in the “sandwich generation” looking for luxury homes with flexible layouts and amenities. Real estate design trends are shifting towards personalization, minimalism, and flexibility, with a focus on sustainability and hotel-like amenities. According to Altneu, gorgeous, minimalistic homes accented by earth tones are getting the most interest in today’s market. Sustainability features are trending on the real estate design front, with buyers prioritizing energy-efficient features, sustainable materials, and solar capabilities. According to Fahmi, today’s homebuyers aren’t just looking for beautiful homes; they want properties that align with their values and reduce utility costs. Hotel-like amenities are also a top priority for luxury home buyers, with buyers seeking resort-style amenities at home, such as spa-like bathrooms, upgraded kitchens, home offices, and entertainment spaces. According to Fahmi, the pandemic changed how people think about their living spaces across all income levels, and now homebuyers want resort-style amenities at home. In conclusion, the luxury real estate market is a dynamic and rapidly evolving space, driven by changing consumer preferences, technological advancements, and shifting lifestyle priorities. Understanding these trends can help homebuyers and sellers navigate the market and make informed decisions about their luxury real estate investments.

“The real estate market is experiencing a period of significant transformation, driven by evolving buyer preferences, technological innovation, and shifting lifestyle priorities,” says Tammy Fahmi, senior vice president of global servicing and strategy at Sotheby’s International Realty.

“Luxury is not just about the price tag; it’s about the lifestyle and the experience that comes with it,” says Michael Altneu, vice president of the Coldwell Banker Global Luxury program. “Smart Luxury” is a mindset that prioritizes value creation over aesthetic perfection, and it’s becoming increasingly popular among luxury homebuyers.