The international luxury real estate market in 2025 is a study in contrasts. There is cooling in some regions and acceleration in others. One thing that remains the same is that this market is overall resilient, subtly refined and always rapidly evolving.

The Big Picture

After the frenzied pace of 2021–2023, the luxury sector is experiencing a measured cool-down. In early 2025, only about 14% of luxury listings sold above asking price, compared to nearly 37% during the pandemic-fueled peak.

But a market cooling doesn’t mean a market collapse.

According to the Knight Frank Wealth Report, luxury real estate prices grew by 3.6% globally in 2024, slightly outpacing 2023’s growth. And more than 75 cities recorded positive appreciation, proving that demand hasn’t vanished – it’s simply become more intentional.

Top Performing Markets

While traditional urban hubs remain solid, global growth hotspots are shifting toward new cities and regions. The strongest performers are both surprising and diverse.

Asia & Middle East are dominating:

• Seoul: +18.4%
• Manila: +17.9%
• Dubai: +16.9%
• Riyadh: +16.0%

Dubai continues to be the breakout star of the decade, with luxury home prices up 147% since 2019. Inventory remains tight, and demand is sustained by tax incentives, visa policies, and world-class branded developments.

U.S. Sunbelt and resorts are still shining:

• Palm Beach: +117% since 2019
• Miami: +84%
• Aspen: +73%

Buyers are still chasing sunshine, lifestyle, and long-term investment value in low-supply areas with year-round appeal.

Europe’s luxury pockets hold strong:

• Marbella, Spain: +6–7%
• Portofino & Florence, Italy: +5–7%
• Paris: Forecasted +2.5–3% growth
• Lisbon & Porto: Rising interest for affordability and Golden Visa incentives

Europe’s luxury growth is more tempered, but design-rich cities with lifestyle perks continue to draw well-heeled investors. Especially for second homes.

The Rise of the Global Nomad

According to wealth migration reports, over 128,000 high-net-worth individuals moved countries in 2024. Many of these buyers are acquiring second homes, not just as investments, but as lifestyle anchors in places like:

• Lisbon
• Geneva
• Naples
• Dubai
• Aspen

Luxury buyers are increasingly mobile, valuing visa flexibility, tax optimization, and wellness-centric communities over traditional prestige.

Lifestyle Over Legacy

The new luxury buyer isn’t just purchasing a property – they are buying experiences, branding, and a sense of belonging. This shift has fueled the rise of:

• Branded Residences (Fendi, Ritz-Carlton, Bulgari): commanding 25–35% premiums
• Wellness-Focused Homes: featuring smart tech, solar integration, saunas, and air purification systems
• Fractional Ownership Models: allowing co-ownership of luxury homes via platforms like Pacaso

New Trends That Have Shaped the 2025 Luxury Market

Luxury Renting Is on the Rise

In London, ultra-high-net-worth individuals are choosing to rent overbuying. They are at times spending upwards of £325,000/month. With taxes increasing and flexibility valued more than ever, top-tier rentals are becoming a smart short-term alternative to ownership.

Auction Houses Get in the Game

Luxury auctions are gaining traction across Europe and the U.S., especially for rare or off-market homes. Sotheby’s and Christie’s are leveraging their global networks to offer fast, exclusive bidding formats for high-end buyers.

Sustainability is Now Standard

Green building practices, off-grid capabilities, and energy efficiency have become must-haves for many global buyers. Not just an ethical choice, these features now directly influence resale value and buyer appeal.

The global luxury real estate market in 2025 is no longer just about owning a beautiful property. It’s about living well, moving freely, and investing smartly.

With lifestyle, flexibility, and branding at the forefront, the next era of high-end real state will be shaped by buyers who value more than square footage. They’re building a global life – one home (or a few) at a time.