2025 Global Luxury Real Estate Forecast: What You Need to Know

The luxury real estate market is set for an exciting shift in 2025, with more inventory, rising demand, and new lifestyle preferences shaping high-end home purchases worldwide.

Christie’s International Real Estate recently released its highly anticipated 2025 Global Luxury Real Estate Forecast, providing insights from top brokers and luxury market experts across the world. As a California-based luxury real estate advisor, I closely follow these trends to help my clients navigate their real estate decisions with clarity and confidence.

This post highlights key findings from the report, along with my perspective on how these trends impact buyers and sellers in the Bay Area and Los Angeles.

2025 Market Predictions: A Positive Outlook for Luxury Real Estate

The global luxury market is expected to see more activity in 2025, with increased inventory giving buyers greater choices, higher demand as 74% of U.S. luxury brokers anticipate an uptick, and stable to rising prices, with 54% of U.S. luxury experts predicting appreciation.

For California, luxury properties in the Bay Area and Los Angeles are already experiencing strong demand from local and international buyers. This could be a great time to list a high-end home, as inventory is increasing, but demand remains competitive.

Luxury Markets to Watch in 2025

The report highlights several emerging luxury destinations, including Madrid, Spain, which is attracting buyers due to economic stability, Perth, Australia, a rising investment destination for its natural beauty and affordability, and the Balkans, where Albania and Bulgaria are gaining traction as new luxury hotspots. In the U.S., Monmouth County, New Jersey, is drawing attention with oceanfront developments close to New York City.

While international markets are heating up, the Golden State remains a prime destination for high-net-worth buyers, especially in areas like Malibu, Beverly Hills, and Napa Valley.

The Pursuit of Authenticity: Luxury Buyers Want More Than Just Square Footage

Cookie-cutter mansions are out—luxury buyers want homes with history, thoughtful design, and a strong sense of place. Buyers are prioritizing architectural character over ultra-modern builds, seeking Spanish Revival, Mediterranean, and modern-rustic styles in California. Locally inspired design is also making a comeback, with buyers valuing craftsmanship and a connection to their surroundings.

For sellers, this means showcasing a home’s unique architectural details can be a powerful differentiator in today’s market.

Safety & Security: A Growing Priority for Luxury Buyers

As security concerns rise, home safety is becoming a major selling point for luxury properties. Buyers are investing in AI-powered surveillance systems with 24/7 monitoring, biometric security, private safe rooms, ballistic doors, and radar-based perimeter protection.

In California, high-net-worth buyers in Silicon Valley, Beverly Hills, and Montecito are prioritizing homes that offer both luxury and discretion. Privacy is the new premium, making security-enhanced properties particularly desirable.

Sustainability & Climate Resilience: How Luxury Real Estate Is Adapting

The report highlights that 59% of luxury real estate experts say climate concerns are influencing buyer decisions. Energy-efficient estates with solar panels, battery storage, and water conservation systems are in demand, and resilient construction is becoming essential in areas affected by wildfires, rising sea levels, and extreme weather.

Luxury wellness features like infrared saunas, indoor gardens, and water features are shaping the new standard for high-end living. With environmental risks shaping home insurance policies, high-net-worth buyers are thinking long-term. Sellers who can showcase sustainability features will stand out.

Final Thoughts: How to Navigate Luxury Real Estate in 2025

The luxury market is shifting, but the opportunity is there for both buyers and sellers. If you’re thinking about making a move, the key is understanding where the market is headed and having the right strategy in place.

Sellers: If you own a high-end property, this could be a great year to list, as buyer demand is growing and more inventory is hitting the market.

Buyers: With greater selection and shifting price trends, 2025 could present opportunities to invest in prime real estate before prices rise further.

Want to see the full report? Download the 2025 Global Luxury Real Estate Forecast.

I believe in advising, not selling. Whether you’re curious about market trends, planning a move, or just want expert insights, I’d love to hear your thoughts on where the luxury market is headed.

What’s your biggest question about the 2025 luxury real estate market? Let’s chat.