The $84 Trillion Wealth Boom: How Women Are Taking Over Luxury Real Estate

Sotheby’s International Realty has released its highly anticipated 2025 Luxury Outlook℠ report, revealing how an unprecedented intergenerational wealth transfer of $84 trillion is set to redefine the global luxury real estate market.

This historic shift of wealth from Baby Boomers and the Silent Generation to younger generations is influencing property investment, buyer preferences, and market trends at an extraordinary scale.

A New Era for Luxury Real Estate

According to the report, high-net-worth individuals (HNWIs) are adapting their investment strategies in response to this massive transfer of assets. Bradley Nelson, Chief Marketing Officer of Sotheby’s International Realty, emphasised the importance of understanding these shifts: “When we first introduced the Luxury Outlook report in 2021, the definition of home was undergoing a seismic shift due to the pandemic.

"Now, as we enter 2025, the global luxury property market remains resilient, with new wealth holders shaping the future of real estate. Our goal with this report is to provide strategic insights that empower our clients to make informed investment decisions.”

The 2025 Luxury Outlook report is informed by data from Sotheby’s International Realty agents who specialise in transactions exceeding $10 million, alongside insights from industry leaders such as J.P. Morgan Private Bank, PricewaterhouseCoopers, Cerulli Associates, Henley & Partners, UBS, and the National Association of Realtors (NAR).

Key Market Trends for 2025

Among the most significant findings in the report:

• Wealth Transfer Driving Market Evolution: 

  By 2045, as much as $84 trillion will have shifted to younger generations, profoundly influencing luxury property investments and reshaping the landscape of high-end real estate.

• Women Leading the Way in Luxury Homeownership: 

  Women are expected to control $34 trillion, or 38% of all investable assets in the U.S. by 2030, marking a significant shift in buying power within the high-end housing market.

• Global Mobility of High-Net-Worth Individuals: 

  In 2024, a record 128,000 HNWIs migrated to new countries, with lifestyle preferences, tax policies, and geopolitical stability playing key roles in relocation decisions.

• Branded Residences on the Rise: 

  The trend of branded luxury residences has surged since 2020, with 84 new projects opening worldwide. As of 2024, this market is valued at $66 billion and continues to attract affluent buyers seeking exclusive, high-end living experiences.

• The Influence of "Best Places to Live" Rankings: 

  Cities that consistently rank highly on these lists are experiencing tangible real estate booms, with increased demand and rising property values.

• Sustainability and Wellness Driving Demand: 

  Buyers are prioritising homes that align with their values, with hybrid work models, wellness amenities, and eco-conscious designs becoming essential features in luxury properties.

• Climate Change and Real Estate Risks: 

  The January 7, 2025, wildfires in Los Angeles County have been identified as one of the costliest climate disasters in U.S. history, highlighting the growing importance of climate resilience in luxury real estate investments.

  
  

Philip White, President and CEO of Sotheby’s International Realty, underscored the adaptability of the luxury real estate sector: “Amidst an environment of high interest rates, global elections, and fluctuating economic markers, the luxury housing market has demonstrated remarkable resilience. The ongoing wealth transfer will continue to shape real estate trends for years to come, and we remain committed to equipping consumers with the insights needed to navigate these shifts.”

To explore the full findings and detailed analysis, readers can access the complete 2025 Luxury Outlook report at www.sothebysrealty.com.