2024 Year In Review and 2025 Outlook

Welcome to 2025

In this review, we will break down the key events, trends, and insights from 
2024, concluding with an outlook for the North American luxury real estate market in 2025.

The luxury real estate market in 2024 was marked by a series of transformative trends, with key 
developments shaping the high-end housing sector throughout the year. 

After a challenging 2023 characterized by limited transactions and stagnation, the luxury market 
made a remarkable resurgence. The year saw a notable recovery, driven by factors such as economic 
stabilization, a rise in inventory levels, and the return of affluent buyers with renewed confidence.

Outlook for 2025

As we head into 2025, we expect to see a stronger market return for luxury real estate, especially if 
the economy, inflation and interest rates hold steady or improve.

As the luxury market moves into 2025, trends such as rising inventory, increased demand for 
sustainability, and a focus on lifestyle-driven properties are likely to persist. With interest rates 
trending downward and buyer confidence on the rise, the outlook for the luxury real estate sector 
remains positive, offering fresh opportunities for discerning buyers and investors.

1. Demand Trends: The luxury real estate market is expected to see continued growth fueled by 
high-net-worth buyers, particularly from sectors like tech, finance, and entrepreneurship. 
International demand will remain strong, with buyers from Asia, the Middle East, and Europe 
investing in stable markets like the U.S., Canada, and Western Europe. Properties offering 
unique amenities, sustainability features, and access to lifestyle experiences will remain 
highly sought after.

 2. Market Characteristics: Suburban and secondary luxury markets will maintain appeal for 
buyers seeking privacy and space, while limited inventory and robust demand will help 
stabilize pricing. Cash purchases will continue to dominate, with some buyers using creative 
financing strategies to secure high-end properties.

 3. Technological and Design Trends: Smart home technology, AI integration, and sustainability 
features will become standard expectations. Buyers will favor energy-efficient designs, 
net-zero emissions homes, and properties certified for green building practices focused on 
environmental impacts such as fire and flooding. Exclusivity in architectural design and 
personalization will also be key differentiators.

 4. Geopolitical and Economic Factors: Shifts in wealth and property taxes could influence buyer 
behavior, while luxury real estate will continue to serve as a hedge against inflation and a 
reliable asset class for global investors.

 5. Marketing and Sales Shifts: The affluent will prioritize the need for global digital marketing 
strategies for their homes, that include virtual tours and immersive experiences to cater 
to international buyers. Equally recognizing that a personalized, relationship-driven sales 
approach will remain critical to success in this competitive market.

 To succeed in this evolving market, staying informed about both macro and local trends will remain 
key to capitalizing on the opportunities that lie ahead. As always, we highly recommend working with 
a luxury property specialist during this unconventional market to ascertain what is truly happening 
in your local marketplace.

Navigating the art of selling and buying in this market needs a critical and analytical approach; 
understanding the realities and setting expectations accordingly will ensure that goals are achieved.

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