2026 Mid-Year Luxury Outlook Report

A view from theCôted'Azur

and long term va ue on the Rv era

This year?s report examines the state of uxury real estate globa ly,alongside factors shap ng he hous ng market through the rst half o 2026 Wealth creat on has expanded the g oba pool of luxury homebuyers A the same t me,a rise n M llennia homebuyers due to earned and nher ted wea th are enter ng he market

Together,these shifts are redefining demand,w h a c ear emphasis on ?experience- ed?homes On the French Riv era,th s s ref ected in grow ng demand for turnkey vi las,branded res dences, we lness or ented amenit es,and properties offering privacy,secur ty,and proximity to the coast ine

As the Sotheby?s Interna ional Realty® brand celebrates 50 years in bus ness,the uxury rea estate market cont nues to d stingu sh itse f not on y for its res lience but for the evo v ng pr or ies of today?s homebuyer

The Sotheby?s Internationa Rea ty brand?s 2026 M d-Year Luxury Out ook report draws on ns ghts rom a globa network o exper enced real esta e profess onals,industry nte l gence and ead ng financial nstitut ons One pattern has rema ned remarkab y cons stent: the uxury rea estate sec or has cont nued to outperform the general housing market

Across the French Riviera,current conditions reflect both local nuance and broader g obal momen um The uxury rea estate market has been marked by l m ted nventory,susta ned nternat ona demand, and con inued interest in prime waterfront and l fes y e propert es Early 2026 data ndicates steady act v y across the ultra prime segment,particu ar y in Cannes,Cap d?Ant bes Sa nt Jean Cap Ferrat and Sa nt Tropez,supported by strong European and North Amer can buyers These figures

h ghl ght the continued conf dence of affluent buyers seek ng stabi ty,l fes y e,

Another notab e theme is the cont nued growth of the ongev y and we lness ndustry, ncreasing y nfluencing how and where aff uent homebuyers choose to ive As ife expectanc es r se many are seek ng properties where they can comfortably ?age in place,?with

demand for homes that ntegrate wel ness, convenience,and community On the French Riviera,th s trend s ev dent n the popu arity of secure private estates, contemporary v l as with l f access and concierge services,and res dences close to med ca eisure,and yachting n ras ructure

The report a so explores what makes certain c ties around the wor d so resil ent despite nterna and externa pressures,and how they cont nue o present compell ng, rel able property nvestment opportunit es for luxury homebuyers Here on he French Rv era,Cannes,Nice,and Monaco adjacent markets continue to demonstrate res l ence thanks to he r nternationa appeal,l m ted supply,strong tourism economy,and enduring lifesty e a trac iveness

Local Market Pulse

A c oser look at recent activ ty on the French Riviera h ghl ghts how these broader trends are trans ating into rea t me housing market movement

TheFrench Rivieracontinues to demonstrateremarkable resilienceand enduring international appeal In a constantly evolvingglobal environment,primereal estate remainsatrusted lifestyleand investment choicefor discerningbuyersseeking rarity,stability,and exceptional quality of life

Severa except onal sales during early 2026 reaffirmed the Rv era?s pos t on among the wor d?s ead ng luxury dest nations,w th s gnificant ac ivity in water ront esta es,contemporary hi top vil as,and pres ig ous res dences in h ghly sought after coastal ocat ons

Among uxury buyers,the most in demand areas cont nue to nclude Saint Tropez,Cannes Ca iforn e,Cap d?Antibes, Saint Jean Cap Ferrat,Moug ns,and Beaul eu sur Mer,where buyers are pr or tising privacy sea v ews,security,and mmed ate access to ifestyle amen ies

Whether you are considering a strategic sale or a careful y timed acquisit on,informed perspec ive has never been more valuable The insights in his report are intended o support thought u , we l nformed real estate decisions n 2026 and beyond

FRÉDERIC BARTH & PETER

ILLOVSKY

We nv te you to d scover more at sothebysrealty com

6

Welcome

The homebuyer pool is diversifying

A Bradley Nelson, ch ef marketing off cer, Sotheby?s International Realty, ntroduces the 2026 Mid-Year Luxury Outlook report.

The Sotheby?s Interna ional Rea ty® brand?s new y re eased 2026 M d-Year Luxury Ou look®Report prov des insights into the trends and developments affecting the g obal uxury rea estate market, which continues to ma nta n ts strength and outperform the genera housing market.1 Sti , there are nuances n uxury rea es ate to exp ore

At Sotheby?s Internat onal Realty, we are seeing the buyer pools for the high-end market cont nue to diversify We see new homebuyers enter he market because of the r se of ntergenerationa wea th transfers, as we as homebuyers who continue to benefit from the extraordinary wea h creat on generated by stock market investments and esca ating rea estate

THERE?SA PUSH AND PULL,W ITH DIFFERENT SEASONSIN LIFE THAT DRAW PEOPLE TO OWN HOMES IN VARIOUSPLACES.

A BRADLEY NELSON ch

ef

marketingoff cer,Sotheby?sIn ernat ona Rea ty

va uations At he same t me, rea estate markets are affected by older populat ons looking o age in p ace n a hea hy env ronment with a festy e they en oy

Expanding poo s of uxury homebuyers are great news for the highend housing market For sel ers, this of ers more opportun t es It means they need to cura e their homes for doub eduty attractiveness, as a place where a young m llennia fami y and o der homeowners can env s on themse ves Where peop e choose to buy is ust as revealing as why they buy ?Location, locat on, ocation?is perhaps the most icon c rea estate mantra This report delves into markets that rema n eternally at ract ve for uxury homebuyers alongside markets exper enc ng a resurgence in at ention The wor d?s great c t es? New York City, Miam San Franc sco, Los Ange es, London Sydney, Singapore and Hong Kong? remain centers for wea h creat on

Once generationa wealth has been ach eved, the prior t es of u tra-h ghnet-worth- ndividua s shift to wea th preservation There?s a push and pul with different seasons n l fe that draw people to own homes n var ous places For examp e, wh le young entrepreneurs in tech and finance ook to buy uxury proper ies in San Francisco and New York, a wave of u trawealthy homebuyers continues to pour into M ami and Pa m Beach, or the ifesty e, prox mity to friends and wea th preservation.

To naviga e these nuances, th s report draws on perspect ves rom Ph l p A White Jr , pres dent and CEO, and Sotheby?s Internat onal Realty-af liated real estate professiona s specia izing in properties priced at US$10 m ll on and above, alongside leading vo ces from the Nat onal Assoc at on of REALTORS®, UBS and more to prov de both ground- evel market expert se and broader econom c context

In add t on to report ng on g obal uxury housing markets, th s report prov des in-depth ana ysis into the we lness and lifestyle goa s of the aging m l onaire popu at on and the g obal ongevity market, projected to grow from US$5 3 tri l on in 2023 to US$8 tri l on by 2030,2 as well as the r se of young uxury buyers n this sector Hea th, wel ness and

ifesty e cont nue to be a pr ority across all age groups, nc uding he des re for soc al connect v y

Th s year, Sotheby?s nternat ona Rea ty turns 50 The brand was born from a simple observat on: col ectors who trusted Sotheby?s auct on house w th the r most va ued possessions needed homes that could ho d them That ear y understand ng? that uxury real estate s as much about how peop e ive as what they own? has shaped how we serve cl ents across more than 1,100 off ces worldwide Fifty years of that perspective s what informs this report That attention to what moves homebuyers and home se lers is reflected in our results: our brand frequent y outperforms the general rea estate market because of our c ose a tent on o hemot vat ons hat move homebuyersand se ers In 2025,Sotheby?s Internat onalRea y ach eved9 3% sales volumegrow h in he U S over 2024, more thantrip ethe performanceof the overall housingmarket In addition, we reached US$182 4 bi l on in globa sa es vo ume, an increaseof 16% year-over-year W thour LuxuryOut ook report, we dig benea hthe surface dataand prov dearea -time perspec iveabout how our clientsare managingtheir real estate portfol os It?s th s eve of commitment to deepeningour knowledge that allows us to outperform the housing market on a wor dw descale andprovide thehighqua ity adv sory serv ces our c ien s have cometo expect.

Surprising STRENGTH

Luxury real estate?smost remarkabletrait may be itsindifferenceto global headlines

Wh le head ines fixated on econom c uncer a nty the world?s wealthiest buyers were quietly do ng what they?ve always done? buy ng The endur ng power of uxury rea estate, particu ar y properties priced at US$10 m ll on and US$20 m ll on and above, exceeded expectat ons in 20251and s poised to cont nue that trajectory into 2026, according to Ph l p A White Jr , president and CEO, Sotheby?s nternat ona Realty

?Even after umultuous local elect ons and am d h gh interest rates, as wel as proposed tax measures, we?re st ll seeing strong proper y markets n New York City, across the U S and around the wor d,?Wh te says ?Despite macroeconomic and geopo t ca headlines, the affluen rema n engaged and conf dent in the luxury housing market They are de berate but not deterred Demand for best- n-class propert es continues o demonstrate that prime rea estate ho ds ts position as a trusted asset and a powerful expression of l festyle and legacy ?

Luxury real estate nvestmen s benef rom s m lar opt m sm about f nances and macroeconomics ?There?s a h gh correlation between stock marke performance and the luxury hous ng market,?says Se ma Hepp, ch ef econom st at Co a ity, a property da a ana ytics company

The S&P 500 ndex tracking the top compan es on U S stock exchanges, rose approximately 80% from ear y 2023 hrough 2025, w h many nvestors expecting further gains, according to a January 2026 ana ys s by The Wal Stree Journal.2

?There?s been a ot of wea th creat on because of the stock market,?Hepp says ?The ncrease n aggregate wealth n the op 10% of Americans over the past five years is approx ma e y US$40 tr l on compared to just US$3 tr l on for the bottom 50% o income bracke s ? Th s is backed up by data released by the U S Federal Reserve in January 2026, which showed a steep rise in the net worth of the top 1% of wea thy Americans, to a ing US$54 tri lion by the third quarter of 2025 3 Hepp po nts out that, in add t on to stock market performance, wealth

Stock Exchange Ga ns, 2023-25

Source: ?Fve Wa St eet Investors Exp a n How They?re Approaching he Com ng Year ?

The Wa S reet Journa , Janua y 1 2026

accumulation at a l ncome leve s stems rom hous ng value appreciation

Whi e he general real estate market has been s ugg sh for the past three years, the upper end has continued to show s gns of strength, accord ng to Lawrence Yun, chief econom st and sen or v ce president of research, Nationa Assoc at on of REALTORS®(NAR) ?There?s a itt e more inventory that has he ped keep that property market mov ng,?he says ?The stock market has he ped, p us the ab lity of upper-end homebuyers to pay with cash and not be concerned abou mortgage rates ?

Most of the wealth n the stock marke s held by the top 5% of househo ds in the U S , Yun says, so these past few years of equity gains have generated the abil ty to buy second, th rd and fourth homes at the op ier of the housing market Luxury homeowners have also benef ted from a r se in home va ues, so they can se l a property and pay cash for their next purchase, he continues But Yun be eves mortgage rates s i l have a psycho ogical mpact on uxury homebuyers Fo owing the Federa Reserve?s Apr l 2026 meeting, when the cen ral bank decided to ho d interest rates at 3 5% to 3 75%, Yun expects hat mortgage rates could come down from lower inflat onary pressures once the financia market shock over o l prices diss pates

Location Matters

Looking beyond the luxury real estate sector, in the overa l rea estate market, 2026 shou d be a year of gradual improvement in affordabi ity according to Hepp, a though there w l be some varia ions by region and price range ?Rea estate markets where homeowners and homebuyers are n the upper ncome levels are doing better than hose w th ower incomes,?she says ?Property investor activity s up and the tax benef ts for upper ncome households are ikely to he p the luxury housing market as wel as nvestors ?u

THE AFFLUENT

The expansion of state and oca ncome ax (SALT) deductions from US$10,000 to US$40,000 n July 2025 due to the One B g Beautiful B l Act4 w ll l ke y ncrease purchases of high-end res dences in states w th high property tax rates, such as New Jersey Connecticut, Massachuse ts and New York, according to Yun However, the expanded deduct ons are phased out for taxpayers w th an adjusted gross income of US$500,000 or higher, so it may not have a sign f cant mpact on u tra- uxury hous ng markets ?As peop e f ed the r ncome tax returns in Apr , they found they cou d reduce their tax b l with SALT deduc ions,?Yun exp a ns ?They have extra money in he r pockets and may be encouraged to buy a larger home when they rea ize they can deduct more of the r property taxes.?

In addit on, if egislation passes to ncrease the capital gains tax exempt on for home sa es, that cou d a so help the upper end o the housing market, Yun says Currently home sel ers can exc ude US$250,000 (US$500,000 for a marr ed couple) of the proceeds from the sale of the r home from capita ga ns taxes, according to IRS guide ines 5 ?More homeowners m ght consider sel ng if their tax burden is reduced, which cou d ncrease the number of high-end ransact ons,?he says Rs ng nsurance costs, h gher property taxes and inflation have much less of an impact on the u tra- uxury property market, Hepp says, but rising labor costs lim new construction and slow the pace of cus om homebuild ng ?The unpred ctabi ity of ariffs and imm gra ion issues have made it much more d ff cu o price custom homes,?she no es ?I ?s hard to know what materia s wil cost because tar ffs have been up and down and vary by item P us, builders strugg e to estimate abor costs because of concerns about mmigrat on ?

Luxury Real EstateMetrics

More than ha f (55%) of Sotheby?s In ernat onal Realty a fi iated rea estate profess onals around the globe reported an increase n the number of uxury

homebuyers in he r oca property markets over the past 12 months, according to the 2026 Mid-Year Sotheby?s nternat ona Realty agent survey They ant c pate a s m lar y strong turnout throughout 2026, and reported average pr ce ncreases of 5%

Particu ar y n this top tier of the rea estate market, superior-qua ty homes that are priced we and marketed appropr ately are se ing quickly, accord ng to Wh e ?n Connect cut, Les ie McElwreath, sen or g obal real estate adv sor, Sotheby?s International Rea ty - Greenwich Brokerage, doub ed the number of US$10 mi ion-plus dea s n 2025 compared to 2019, even though there were fewer han 100 homes on the real estate market n that price range,?Wh te says

?On Sea Is and, Georg a, Chase M zell of A lanta Fine Homes Sotheby?s Internat ona Realty and Susan Imhoff and Ann Harre l o DeLoach Sotheby?s In ernat onal Realty set a state record by sel ing architect John Portman?s 13,000-square-foot home for US$30 mil ion,?6 White adds ?The house, Entelechy I , s striking y contemporary a departure from the trad ional cottages on the s and,

A Rise in Luxury Homebuyers Over thePast Year

Source 2026 Mid-Year Sotheby?s nte nat ona Rea ty agent su vey

%

but it?s r ght on the water ?That record cou d soon be broken, however, by the former home of HGTV co-founder Ken Lowe and h s wife Jul a? a custom-built, 11000-square-foot ocean ront estate? accord ng to an Apri 2026 report by The Wal Street Journa 7 The mansion, ca led Lowe T de, was recen ly sted at US$42 m l on with DeLoach Sotheby?s International Rea ty In the w der rea estate market, Hepp notes a divergence between a slowing property market in the Southeast compared to a more stable one n the M dwest and the Northeast ?The general Flor da housing market has slowed because of the compound effect of natura d sasters h gher insurance and immigrat on restrict ons, but high-end homebuyers seem to be nsulated from those issues,?she says The ultra-luxury property market in Miam , For da, s on par icularly so id ground, according to Yun ?They had a itt e oversupply, but w th the r nfras ructure deve opmen and new luxury condomin um construction, t?s becom ng an even bigger city,?he says ?There are many many mi ion-dol ar homes there, but the job ga ns in Flor da have been grow ng faster than in the rest of the country ?

Yun also believes many ret ring wea thy baby boomers (those born between 1946 and 1964) wi choose to re oca e to Flor da n the years ahead, espec a y to benefit from he lack of state ncome taxes there ?We?ve seen renewed uxury rea esta e demand n New York City and Ca iforn a?s Central Coas , but also booming luxury property markets n Montana and Wyoming wh ch are ax-fr endly sta es,?Hepp says In Los Angeles, Ca iforn a, the ?mansion tax?on the sa e of properties worth US$5 m l on and more has been n p ace s nce Apr l 2023, yet the ultra-luxury property market there continues o thr ve Hepp says ?Sales o homes priced from US$3 m l on to US$5 m l ion [and so not subject to the add tional tax] were up 11% n 2025, whi e sa es of homes at US$5 mi lion and h gher were up 30% ?

Wh e Washington, D C was the focus o at ention n 2025 because of federal government ayoffs, Yun says the city?s enduring appea as an n ernat onal cap ta has kept the ultra-luxury property market there thriv ng He says peop e w h a ong-term perspective are eager to ge nto the Washington, D C hous ng market now

because of the perception of aslowdown there, wh ch has kep sa es act vity onso id ground

Globa ly, sa es transact onsfor the Sotheby?s Internat ona Realty brand wereup n 2025,Wh te says Cabo San Lucas, Mex co, wasamong the strongerperforming markets, part of wha Wh edescr bes as a genuine shift in homebuyer behav or. ?Amer cans are more open to d fferent p aces than n the pas ,?he says, a trend the brand s seeing acrossits g obalportfolio V etnam represents thebrand?s next movein hat d rect on, a market where economicgrowth hascreated a new c ass o wealthy domesticbuyers, nternationa interest is acce era ing and luxury inventoryhasn? t caught up with demand

The country w l jo n the brand?sex sting presence n key globa hotspots in the AsiaPac f c reg on, suchas Austra ia, New Zea and, Hong Kong, S ngapore,Ta wan, the Ph ipp nes and Japan ?Tokyo had an except onal year,and Osakaopens up an ent re y different sideof what Japan has toof er our cl ents,?Wh te says

Luxury homebuyers who rely on the brand?snetwork are a m x of pure property investorsand hose ooking for a ifes y e purchase, accord ng to White ?Some homebuyers are just fascinated by real estateandwant to buy mu tip e properties w th the potent al to rent them for aseason or two But in the long term, they focuson gett nga goodpr ce for anyth ng they buy They need to seethe value n their purchases and want to know that f and whenthey dec de to se l, they have the potent al to get a goodreturn on the r nvestment ?

TheGlobal W ealth Effect

Weal h cont nued to accumu ate international y in 2025, w th an est mated 4 3 mi lion high-net-worth ind v dua s (HNWIs) around the world, each with households worth morethan US$1m l ion, accord ng to the Wor d U tra Weal h Report 2025 released n September 2025 by Al rata,a provider of g oba financ al data 8 Wth n that group there are more than 500 000 u tra-high-net-worth ind v dua s (UHNWIs), w th morethan US$30 m l ion in wea th And whi eUHNWIs make up ust 11% of the wor d?s mi l ona res, an already rarefied demograph c, they hold 32% of this group?s net worth accord ng o Al rata?s research

The op 10 countries w th the largest percentage o UHNWIs nc ude the U S , Ch na, Germany, the U K , Japan, Hong Kong, Canada France Italy and India A trata?s researchers predict that wh le North America wi l remain the region w th the most u tra-wealthy res dents, by 2030 the strongest growth of UHNW s w l be seen n Asia, with an outs zed boom n Ind a.

Accord ng to the UBS Gobal Wealth Report 2025 re eased n June 2025, 35% o the wor d?s wealth s held in he U S and approximately 30% s in emerg ng econom es, which UBS researchers expect to rema n the same over he nex ew years.9 Nearly 40% o the wor d?s m l ona res res de n the U.S., four imes as many as in mainland Ch na, according to UBS, and researchers ant c pate another five mi lion new m ll onaires wi be m nted by 2029

?If the pres dent a admin stration?s h gh-end visa program really takes off, that could s gnificant y boost luxury sa es to fore gn nat onals n the U S ,?Yun says The website for th s in iat ve went l ve in December 2025, offering a streaml ned path to U S c t zenship for a fee of US$1m l on for ind v duals and US$2 m l on for corporat ons, which can then prov de mm gration and residency rights to employees 10 The program a so requ res a US$15,000 process ng fee In late December 2025, the admin stration claimed that sales of Gold Cards had a ready reached US$13 bi lion accord ng to a December 2025 report by Scripps News 11

?Tightening of other immigrat on po c es may s ow some fore gn property nvestment, but general y 2026 should be a strong year for nternationa homebuyers in he U S a ter it was muted for so long because of the pandem c,?Yun says

Generational Transformations: Millennial Homebuyers

A combina ion of earned and nher ted wea h has led to an increase n uxury home purchases by mi lenn al homebuyers (those born between 1981and 1996), accord ng to the 2026 M d-Year Sotheby?s International Realty agent survey A major ty (66%) of respondents operat ng at all price evels said there are more Mi enn al homebuyers in the r property markets; this trend was even more pronounced among rea esta e profess onals work ng n the US$5 mi lion-and-up pr ce bracket, 73% of whom saw a r se in th s demograph c ?The wealth transfer is happen ng now and giving younger homebuyers more capital to make big

purchases,?Whitesays ?At the federal level, there are no taxes on ifetime gifts of up o US$15m l on per ind v dualor US$30 mil ion for amarried couple accord ng to RSguide nes updated n January 2026 12 Plus parentssee that g v ng their k ds US$2 mi l on now as a g t s likeearn ng US$4 mi lion because it?stax-free ?

Th s wealthtrans er w l resu t in changes o the housing marke ,since younger homebuyerstend to be more influencedby soc a med a and make festy e purchases rather thanpure rea esta einvestments, White says

But lifestylecons derations arekey for allgenera ions, with 62% of responden s to theagent survey saying has become an ncreas ngly important factor for homebuyers

Taxes wereclose beh ndat 60%,followed by econom c stab lity (53%) andpo itical stabi ity(49%) u

Travel asan Indicator for Second HomeMarkets

Luxury rave trends can also provide insights into the motivations and priorit es of those ooking into h ghend rea esta e purchases ?Aff uent travelers place a premium on experiences where they fee comp etely cared for,?Wh te says ?That?s one reason branded residences continue to be among the hottes trends in uxury rea estate People real y gravitate to places like the St Reg s, Four Seasons and Waldorf Astoria residences because they like iving in a p ace that prov des the services of a luxury hotel Asia-based branded residence operators such as Mandarin Orien a , The Peninsula, Banyan Tree, S x Senses and Rosewood are setting new standards of luxury ?

In addit on, a w l ngness to spend lavishly on trave bodes well for cont nued nvestment n rea estate, especially as people f nd new dest nat ons where they may want a more permanent residence

?Affluent trave ers, made wea th er in recent years by stock-market ra lies and rea -estate ga ns, have sp urged on their stays with abandon ?accord ng to a November 2025 report by The Wal Street Journa 13 ?Hav ng a ready accumu ated a stash of fancy cars and

watches, wealthy Amer cans today are spending even more on experiences, includ ng travel Multigenera ional trips are more popu ar han in the past, with grandparents paying for accommodat ons large enough to inc ude the r ch ldren and grandchi dren ?

LifestyleDrivesSales

?We have a ot of momentum in our brokerages and our affil ate businesses,?Wh te says. ?We ant cipate the res lience of the uxury rea esta e market to continue throughout this year and beyond ? n add ion trends such as lifestyle-dr ven pr orities and the nf uence of younger wea thy homebuyers are ikely to affect g obal high-end property markets throughou the year

The combinat on of wealth creation hrough real esta e, equ y investments and ntergenerat ona transfers supports cont nued res l ence in luxury and u tra- uxury housing markets U tra-h gh-net-worth homebuyers and sel ers share an understand ng that nvest ng n real estate for ifestyle benefits and f nanc al diversificat on could help generate the r preferred outcomes St l , they seek the advice of rea estate experts w th globa networks and expertise to help them nav gate the complexities of property purchases -

Spotlight on Global Markets

International geopoliticsand macroeconomicsinfluenceconditionsin luxury housing markets,but regional and local trendsalso play a role.Thepagesahead examinetheevolving trendsacrosssomeof theSotheby?sInternational Realty brand?spremier housingmarkets.

Boston and Cambridge, Massachusetts

In Boston, uxury condom nium bu ld ngs n pr me locations with h gh-end amen t es attract p enty of homebuyers,but the top range of the housing market in nearby Cambridge pr mari y cons sts of sing efami y homes priced at US$10 mi ion and above,according to Lauren Ho leran, senior g obal real estate adv sor, Gbson Sotheby?s Internat onal Realty n Cambr dge

?The uxury condom nium market

n Boston a tracts peop e who want to downsize from a larger house that needs work,?Hol eran says ?In Cambridge, the upper end of the market is most y renovated or remodeled sing e-fam y homes hat don? need work either What se ls here s a contemporary nterior with colon al exterior or a colon al house with a we l-des gned contemporary addit on? The appe ite for renovating a home has d sappeared n the ast year or two,Hol eran exp ains,primar ly because of the uncerta nty of how much the work

w llcost andhow much time might be needed o completeamajor pro ect

?Therewas a pr ceshift in our marke , w th most u tra- uxury homesvalued under US$10 mil ionr s ng to theUS$15 mi ion o US$16 m l on range by 2025,?she says ? think we?vereached hetop of the marke of what homebuyersare wil ing to pay now,so prices arepu ing backto he US$12 mi l on to US$15m l on range?

Thereason, she be ieves,is the ?vibecess on?? theperception that he economyis n a slowdown even whenit?s not u

ARTIFICIAL INTELLIGENCE HASTRIGGERED A RENAISSANCE FOR THE BAY AREA.

?t?s more of a confidence issue than a f nanc al reality tha ?s holding back homebuyers a l ttle on the upper end,?Ho leran says Stil ,Boston and Cambridge cons stently attract deep-pocketed homebuyers from the f nanc al serv ces sector and technology and l fe sc ences f elds,she adds For those that prefer to ve n Cambridge, he rarity of a u ly renovated h stor c home keeps the market tight

Dallas,Texas

The c ty?s housing market has been stable,wh ch bodes wel for the res o 2026,says Rachel Finkbohner g oba rea estate advisor,Br ggs Freeman Sotheby?s Internationa Rea ty.

?We do 70% of our bus ness be ween January and June,and typically have 30-day closings,so th ngs move fast ?

Fnkbohner says.?Our inventory n Da las s real y tight,particu ar y in neighborhoods w th a range of educationa resources, where homes are priced from US$2 5 m l on to US$6 m l ion?

The Dallas market is ?hyper-obsessed? w th locat on,according to Fnkbohner, w th some homebuyers on y wanting to ive on one or two specific streets

?Most of our homebuyers are oca s, so hey know where they wan to be,?she says.?But more companies are moving o Dal as,too,so the number of out-of-market

homebuyers s starting to increase in the c ty compared to the rest of the state, with the top eadersh p of hese compan es buy ng homes n h gh-end ne ghborhoods?

Whi e n other U S markets people have tended to stay n their homes for longer in recent years,in Da as peop e often look to upsize upgrade for style or sh f o a more des rab e ne ghborhood after a few years n their home,according to Fnkbohner ?In ne ghborhoods ike Univers ty Park,some developers are bui d ng homes in he US$7 mil ion to US$12 m l on range,?she expla ns ?Otherwise,mos o the new construct on is custom homes bu t after an exist ng home s torn down?

Fnkbohner anticipates a strong market throughout 2026 but hopes for more inventory,part cu ar y n the US$2 5 mil ion to US$4 mi l on range to increase transac ion volume

San Francisco, California

Ar if cia nte l gence (AI) has triggered a renaissance for the Bay Area according to A ex Hachiya,sen or globa rea estate advisor,Sotheby?s Internationa Rea tySan Francisco Brokerage ?San Francisco thrives on innovation and new techno ogy,and now the A boom is rea ,?Hach ya says ?Wea th f ooded back nto the c ty n 2025,and we saw

84% more sa esof homespr ced a US$75 mil ion andup that year, compared to 2024?

That sa es trajectoryboosted conf dence at every evel n thecity going into 2026,ass sted by newpol t ca eadersh p restoring San Francisco and ts reputat on, hesays ?t?sbeen aU-turn, w th people moving backherefrom New York, New York, Austin, Texas,Washington,DC and elsewhere,?Hachiyacontinues ?San Francisco has a ways been a trophy c ty for internat onal homebuyers, a though we haven? t seen as manyfore gn homebuyers n the past few years?

Homebuyers in he r 20sand 30s who work in tech,areentrepreneurs or havefami y wealthbuy inthe city at f rs and thenmove to nearby suburbs when they havech ldren,Hach ya notes ?When they?re a l ttle older andtheir kids goto co lege,those homebuyers purchase a weekend place n thec ty,?he says ?We a so seedemand from emptynesters ando der people who want to buy a new place n a bu ld ngwith aneleva or as part of the r retirement plan We see somegrandparents buying places n the area so they can bec oser to their k ds and grandkids,too?

Al homebuyers,but espec al y younger ones,want turnkey proper ies w hout the need to renovate, plus af ex ble floor p an, pr vateoutdoor space and a walkableneighborhood, Hachiyaadds u

THE DEMOGRAPHIC ISSHIFTING YOUNGER,TO HOMEBUYERSIN THEIR 30SAND EARLY 40S,OFTEN FOUNDERSOR SECOND-GENERATION W EALTH.

MARCUSO?BRIEN,head of thefamily office,Un ted Kingdom

?In 2026,we?re see ng a l ttle more nventory come on the market from people who were wa t ng for the r ght moment to sel ,?he says ?Now tha the AI demand s here and peop e feel more conf dent about an improv ng c ty,we expect susta nable strength n the housing market ?

Mumbai and New Delhi,India

The momen um experienced n pr me

uxury property markets n Ind a over the past year is ikely to cont nue,particu ar y n iconic ne ghborhoods w h imited nventory,according to Sudershan Sharma,execut ve d rector,India

Sotheby?s Internationa Rea ty ?W h record sa es and except onal performance n the u tra- uxury segment, 2025 was a de ning year,?Sharma says ?We saw strong growth n both transaction volume and prices,w h overa l va ues surg ng over 40% n the last three years. However nventory rema ns t ght; the scarc ty of ?trophy?properties n pr me zones ike Lutyens?Delh and South Mumba has ed to prices hold ng strong? Luxury homebuyers in nd a trad t onal y come from legacy ndustr al fami ies,but Sharma says that new demand is com ng from younger homebuyers,including startup founders, next-generat on en repreneurs and C-su e execut ves monet z ng the r equ ty gains

Sotheby?sInternationa Rea ty

?Many homebuyers are upgrad ng he r primary residences for ifesty e va ue, and demand for second homes n h lly and beach dest nat ons is robust as an escape rom urban intensity?Sharma explains ?Luxury rea estate s viewed as a ?b uechip asset class?or capital appreciat on and efficient re nvestment of capital ga ns under Indian tax aws?

India?s strong economic momentum and ris ng wealth evels along with interesrate cuts and tax laws nfluence the luxury real estate market here

?The most des rab e homes are ?exper ence-led?gated vi las or h gh-r se proper ies offering we lness privacy and op-of-the-line amen t es?Sharma says ?We?re a so see ng except onal demand or second homes n dr vab e destina ions rom Mumba Simultaneously,the core markets n the financial cap a remain robust,par icularly in iconic neighborhoods such as Nepean Sea Road,Ma abar Hi and Worl where the address tse f carr es an rreplaceab e premium?

London, United Kingdom

Headl nes predic ed tha wealthy homeowners wou d eave London af er recent tax law changes,but n 2025 he market performed better than n 2024 n both sa es volume and pr ces,according o Marcus O?Brien,head of the fam ly

off ce,Un ted K ngdom Sotheby?s Internationa Rea ty

?There was a degree of wealth movemen ,and we saw some cl ents re ocate earlier n 2025,but th s also re eased stock that hadn? t come to market in two decades or more? propert es that are rare y traded and were met w th strong demand,?O?Brien says ?Turnkey proper ies with highca iber inter or des gn cont nue o see the strongest demand,?O?Brien says ?Buyers are prior t z ng homes that are fu ly finished to a h gh aesthetic and technical standard The demographic is also shift ng younger to homebuyers in the r 30s and ear y 40s,often founders or second-generat on wealth, n the prime and super-pr me brackets?

While mos purchases are for primary residences,second home activity has grown as the hybrid l festy e becomes more entrenched he adds ?The UK government?s 2025-26 budget has played a meaningful ro e nfluencing the uxury housing market ?O?Br en says ?Clarity around property taxat on and stamp duty hresho ds has prompted some homebuyers who were prev ous y on the side ines o re-engage Broader econom c stabil za ion nterest-rate expectat ons and currency movements ? part cularly sterl ng against the do lar? are a so shap ng buying dec s ons?

For the rest of 2026,O?Brien expects more legacy properties to

become avai able and to trade ?If economic po cy remains predictab e and interest rates ease,confidence w l cont nue o bu ld,?he says ?Price growth s l ke y to be modest but pos t ve,w th cont nued compet t on for the h ghesquality homes As always,qual ty wi l outperform quantity?

Singapore, Republic of Singapore

Its posit on as a mecca for UHNWIs as well as its s rong currency con inue to

bo ster S ngapore?s reputation as a safehaven market,accord ng to Nancy Tey, sen or assoc ate vice pres dent L s Sotheby?s Internationa Rea ty,Singapore ?Prices for non-landed properties [condom n ums and apartments] were resi ent throughout 2025,and some prime trophy assets in Singapore achieved new benchmark pr ces,?Tey says ?Transaction vo umes were higher in 2025 because of many condom nium aunches in the core centra region?

Wh le propert es with and are high y des rab e,they?re also n short supp y The propert es that sell the fastest are non- anded residences inDistr cts 9 10 and11; ?GoodC ass Bunga ows?which areexclusive properties in des gnated areas with arge ots; detached residences w th redevelopment poten ial; arge-format un ts w th three or ourbedrooms and privacy;and move- n ready homesw th h gh-qual yf nishes, Tey says ?Most of our transact onsare loca homebuyers who areS ngaporean citizensor permanent residents intheir 40s to 60s, but we?vea so seen anot ceab eincrease n younger homebuyers in tech and finance,a ong w th second-generation am lywealth?u

I EXPECT PRICES TO KEEP RISING,BUT AT A MODERATE,STEADY PACE.

HARRIET

FRANCE,senior g obal real estateadvisor, Sydney Sotheby?s nternat ona Realty

Fore gn homebuyers are active on the u tra-prime leve ,but purchases are l m ted by the high Additiona Buyer?s Stamp Duty charged to fore gn and second-home buyers St l,Tey says UHNWIs from China, Indones a and Ind a,and g obal bus ness owners with fam ly off ces n Singapore, cont nue to buy residentia property there ?Our homebuyers pre er prime establ shed locations over fringe uxury oca ions,?Tey adds ?They also pr oritize privacy,long-term ivabi ity and ayout eff ciency?Throughout 2026,Tey ant cipa es Singapore wi l ma ntain ts position as a long-term wealth preservat on market rather than a speculative one

Sydney,Australia

The luxury hous ng market in Sydney outperformed other interna ional rea estate markets in 2025,w th higher pr ces, more transact ons and re at vely t ght ist ngs,according to Harriet France, sen or globa rea estate advisor Sydney Sotheby?s Internationa Rea ty And she predicts more of the same n 2026 ?I expec prices to keep ris ng,but at a moderate,steady pace rather than a boom,with demand rema ning strong? France says,attr bu ing th s trend to a strong base of oca h gh-ne -worth homebuyers,downsizers and returning expa s,along with some select ve nternationa n erest ?We have very imited stock in bluechip oca ions,

wh chsupports prices andcompet t on orqual ty homes?

In Sydney,demand s strongest or waterfront mans ons, harbors de estates, h gh-end beachside houses,luxury premium apar mentsand pres igehouses ocated n the blue-ch p suburbs in theeast andthe ower north shore, France notes Beyond he oca homebuyer baseor those movingbe ween sta es, international and expat homebuyers genera ly comefrom the U S ,the U K ,New Zea and, HongKong, ma nland Ch naand S ngapore ?Wehave astrong presence of estab shed andm d- fehomebuyers?she exp ains, ?but younger wea hy homebuyers are ncreasing, anddowns zers are alsos gnificant ?

Thebigges influenceon he uxury real estate market in Sydneythis year is interest rate stabil ty,France says n add t on, thechronic supp y scarcity in b ue-chip locat ons domestic econom c resi enceand ow unemp oyment dr ve up pricesand demand from oca homebuyers Wh ethe reputation of Sydneyas a haven orcap tal generates g obal wealth f ow, emporary fore gn buyer restr ctions on estab shed dwell ngs reduces some offshoredemand,she exp ains ?Themarket s becom ng more ifestyle-dr ven,design-focused and uture-proofed,rather than purely abou prest ge,size or status,?France says ?Homebuyersare focusedon locat on, ow ma ntenanceand long-term

ity as wel as l festy e?-

AgingMillionaire BOOM

The wealthiest homebuyers n the world are gett ng older, and they?re bui ding homes to match the r festyles

As g obal populations ive onger,the uxury rea estate market is undergoing a fundamenta transformation ?ncreasing life expectancy,coupled with affluent homebuyers?des re to ?age n p ace,?is reshaping everyth ng from home design and locat on choice to how nventory circula es n pr me rea estate markets? says Tammy Fahm sen or vice president,globa serv cing and stra egy,Sotheby?s nternat ona Rea y This ag ng m ll onaire boom, ncreas ngly rooted in ongev ty and wel ness econom cs s creating new opportun t es as we l as challenges for luxury real esta e Globa fe expectancy at b rth has r sen sign f cantly w th n the ast century,from roughly 46 years in 1950 to 73 years n 2023,accord ng to a November 2025 report by Stat sta 1 By 2100 peop e around the wor d are expected to l ve to 82 years on average,with Europe and North America predic ed to have even h gher l fe expectanc es of around 90 years.

a low hem o ive wel for a very long t me These are c ients who are high y ocused on the r hea h,longev ty and qual ty of ife?

Longevity-Driven Economics

The grow ng emphasis on longev ty s not mere y a l esty e trend? t?s a ma or economic force that cont nues to gain momentum UBS Global Wea th Management pro ected in March 2025 that the worldwide longev ty market,wh ch encompasses hea th,we lness and ag ngrelated spend ng,wil grow from US$5 3 tril ion n 2023 to US$8 tril ion by 2030,re ecting strong demographic and consumer sh fts toward longer,healthier l ves.2

Th s expans on reflects a broader macroeconom c sh ft: as populat ons age and ife expectancy rises demand increases for the services,products and propert es that he p mainta n a higher qua ity of l fe we l nto la er years.The world?s over-60 population is expected to doub e by 2050 surpassing two bil ion peop e,UBS reported

Rea estate sits square y in the path of that spending. Within he broader ongev y economy,property has emerged as a quickly expanding segment ?Wellness

?Many buyers n their late 50s,60s and 70s are not downsizing or moving into sen or housing? says Anna Sherril ,sen or globa rea estate advisor, ONESo heby?s Internat onal Realty in Miami,Forida ?nstead,they are purchasing or staying in homes that US$5.3 trillion US$8 trillion

real es ate has consistent y been the fastest-growing sector n the wellness economy,sign ficant y ou pacing pro ections and econom c growth trends,and t has more than doubled in s ze n just five years,?say the authors of a November 2025 report by the Globa We lness Inst tute, led by Kather ne Johnston sen or research fel ow 3 By 2029, he market for such real estate is est mated to be worth more than US$1114 tr l on,according to the report

This growth underscores that wealthy homebuyers do not purchase homes for ust aesthetic or investment reasons Many are now seeking env ronments that proact vely support the r ong-term health,resi ence and overa l well-be ng One practical consequence o th s is a reduct on n housing urnover n h gh-end luxury real estate

?Today?s ultra-high-net-worth buyer s th nking in decades not moments,?says Nikki Fie d,sen or globa real es ate adv sor,Sotheby?s In ernat ona Rea ty - East S de Manhattan Brokerage,who recently launched sales at 262 Ffth Avenue in New York C ty? a new developmen centered around wel ness eatures ike a fitness center and h gh-performance air f ltration.?They?re invest ng in residences that protect the r ime enhance their wel -be ng and remain re evant across generations?

The assumptionthat luxury property owners wi l eventually transition nto luxury senior l ving or ret rement commun t es s no longer certain Fahmi po n s out that mu t generat ona iving is on the riseamong a fluent fam lies as away toaccommoda e ag ng re at ves u

as we l as build a egacy And ncreasing y many o der homeowners prefer to upgrade or retrof the r current homes to accommodate their needs as they age, as opposed to re ocating

?Among our n ernat ona c ientele,we clearly see aff uent homebuyers retain ng residentia properties for much onger than orig nal y p anned,?says Despina Laou, head of pr va e off ce,Greece Sotheby?s Internat onal Realty ?Homes nitia ly acqu red as second res dences are ncreas ngly used as sem -permanent or permanent bases la er n l fe These ndiv duals have the f nanc al f exibi ity o live independent y across mu ip e homes What we observe instead in Greece is a del bera e cho ce to age wel .?

Laou cites as an example a couple from Austral a, in their 70s,who acqu red a property in Greece valued at approximately US$116 mi lion ?The home was chosen for ong-term v ng,with multiple bedrooms to host ch dren,grandchildren and permanent s aff,? she exp ains.?They now spend the Aus ralian winter [June to August] n Greece? effective y iving a ife a igned with extended summer seasons?

Designing for Longer Living

Homebuyers Look to Age in Place

Source: 2026 M d-Year Sotheby?s Interna ona Rea ty agent survey

For homebuyers plann ng to age in p ace,traditiona uxury features such as grand v ews or oversized entertain ng spaces are now complemented by wel ness-centr c design ?Affluent owners l v ng onger wi l prior t ze res dences that extend independent l v ng? w th fal ?prevent on layouts circad an ighting,a r/water qua ity systems and integrated telehealth,?says Fahmi ?Propert es that embed age?friendly design w th soph sticated we lness tech wil command a premium over comparable trophy assets w thout Homes with ma n?floor suites,e evator stacks,s p?resistan surfaces,smar mon tor ng,s aff quar ers and wellness suites wi l be a a premium? Near y 40% of real estate professiona s cited in the 2026 M d-Year So heby?s Internat onal Realty agent

survey say aging in p ace s a growing concern among homebuyers,and they are ncreasing y seeking bui t-in wel ness features,such as:

- Universal des gn elemen s that ensure accessibi ty as mobil ty changes over ime,including a preference for sing e-story residences and curb ess bathrooms

- Direct con act wit h t he out doors such as on-property h king or walk ng trai s,encourag ng regular exercise and priorit z ng privacy and quiet environments,particular y water v ews

- Air- and wat er-qua t y opt mizat on, nclud ng advanced f ltrat on systems

- Spa-like amen ies,inc ud ng sauna,s eam, co d plunges,red-l ght herapy massage rooms and fu ly equipped gyms

- Int egrat ed t ech and st af t o support hea h monitoring,mob lity assistance and smar home devices

- Healt hy dining opt ions,such as ju ce bars and access to private che s,w th an emphasis on organic products and p ant-based opt ons

These features not on y enhance qua ity of l fe but a so support ongev y goals? making a home not just a p ace to l ve but a place to thr ve in peace. ?Developers are respond ng to homebuyer demands by blend ng age-friend y des gn w h access o cl nical serv ces and urban mobi ity?Fahm expla ns ?Branded res dences w l become more n demand? co laborat ons in the hosp tality, ash on and automotive sectors ind cate the direction of the luxury rea estate market toward serv ce-r ch iving arrangemen s Homes are becom ng hubs for care connec ion and cont nuity? where uxury s also def ned by adaptab l y,wel ness and commun ty?

WellnessCommunities

Beyond individua homes,communities bu lt around longev ty are gain ng tract on, and they d ffer from trad t onal senior housing in many respects Highend residentia enc aves in Florida, Mex co and other coastal reg ons ncreas ng y ntegrate on-s te medica professiona s, wel ness programm ng and preventive

care fac l t es, m rror ng hosp a i y models but des gned for permanent residency

?Many cl ents are ooking for homes near the ocean or d rectly on the wa er with an emphas s on natural gh , wa kabi ity and an overa l healthy l festy e,?Sherri l says ?I recent y c osed on a residence at the Estates a Acqual na n Sunny Is es Beach, Flor da, where the amen es were akey reason for the purchase Many newer uxury bu ld ngs now fee more l ke l v ng na resort In addition, I have represented homebuyers at the St Reg s Res dences n Miam , For da, wh ch offers more than 50,000 square feet of spa- ike amenities including cold p unges, saunas, a sal spa room and astate-of- he-art fitness center w th pr vate ra ners yoga, P la es and spinning Th s evel o wel ness is becoming standard n newer construct on?

Such commun es draw homebuyers seek ng bo h a luxury l festy e and ongevity Accord ng to Govana Sa d var, sen or g oba rea esta e adv sor, Riviera Maya Sotheby?s nternational Rea ty in Mexico these deve opments ref ec a s rategic recogn t on that wealthy homebuyers ncreas ng y v ew their homes and communities as pr mary wel ness assets ?There s aconscious search for peace s lence and a connec on w th he environment, rather than an active soc al or urban ife,?Sald var expla ns ?For this reason, v l as loca ed in the S an Ka?an B osphere Reserve n Quin ana Roo Mex co, genera e avery strong nterest n th s homebuyer profi e This type of property of ers them exact y what they are look ng for: a pro ected natura se ting, v ews, absolu e privacy and a high level of secur ty?

Salvidar?s c ients focus heir purchas ng dec s ons on two key actors secur ty and peace ?In the con ex of the Rv era Maya, Mexico,theseva ues trans ate a most immed ately and nd sputably into Sian Ka?an? a dest nat ontha representswel -be ng, pres igeand a qual ty of fe designed for the ong term,?she says

LessonsFrom theBlueZones

Research nto reg ons where ongev y is the norm, common y referredto as ?BlueZones,?provides additiona insigh s onthe topic The term was first coined in 2005 by Nationa Geograph c exp orerDan Buettner o describe regions w thabove-average concentrat onsof peop ewho l ve to be 100 years o d andwho often report ower rates of chron c d seasethan elsewhere 4 As identified by he Nationa L braryof Med cine n 2016,theor ginal five Blue Zones are Ikaria,Greece;Okinawa, Japan;Sard nia Italy; u

HOMESARE BECOMING HUBSFOR CARE,CONNECTION AND CONTINUITY? W HERELUXURY ISALSO DEFINED BY ADAPTABILITY,W ELLNESSAND COMMUNITY.

TAMMY FAHMI senior v cepresident,global servic ngand strategy,Sotheby?sInternationa Rea ty

Loma L nda,Ca iforn a; and the N coya Peninsula Cos a Rca 5 These ocat ons are consistent y cited as examp es of exceptiona ongevity and quality of l fe

These reg ons share a var ety of characterist cs ncreasing y ref ected n uxury rea estate preferences: an emphasis on wa kab ity soc al connectedness, access o nature,a nutritious local food system and commun ty-orien ed des gn Wealthy homebuyers are paying attention

?More and more c ents approach us w th clear ongev ty criteria? outdoor activity soc al connect on, year-round use and access to hea thcare? position ng Greece as a country where peop e choose to ive onger and better?Laou says ?Anotab e examp e is a Sw ss couple in their early 60s who acqu red a arge estate in Porto He w h he explicit intention of creating a longerm base focused on wel ness and ongevity Simi ar motivat ons are ncreasing y seen n Paros and other qu eter Cyclad c is ands?

Real esta e professiona s in Costa Rca are nav gating s m lar desires ?W th n the N coya Peninsula, commun t es such as Nosara,Santa Teresa and Ma País have become natural magnets for ongevity-minded homebuyers,?says Elena Araya Cal ís,country manager, Cos a Rca Sotheby?s Internat onal Realty ?What attracts hem s not spectac e but rhythm? a way of l fe that fee s grounded,susta nable and deeply human?

A compe ling example of this approach is CalaSo a new res dent al enc ave ocated directly within the B ue Zone,she says ?Set in P aya Gr ngo,Guanacaste,Ca aSol reflects a new genera ion of uxury development? one hat va ues permanence over pace and s ewardship over scale?Cal ís says ?W th just 32 dramat c ocean-view homes es and direc adjacency to protected coast ne, he pro ect pr or tizes time essness over volume and egacy over y eld For its residents,CalaSo is not viewed

as a specu at ve property nves ment It s a mu t generationa ifestyle dec s on Wha s be ng acquired s not only land or architecture but con inu ty? he assurance that the landscape,the v ew and the experience of place w l endure?

Asite n Queens own,New Zea and,has s milar appeal o those seeking luxury and longev ty,Fahmi says ?There s an excit ng new deve opment on the South Is and,Te Taumata Lakev ew,represented by New Zea and Sotheby?s Internationa Rea ty,where cu ture,health wellness and creativity converge,?she expla ns ?Due to ts ocation among oca r vers and streams the development?s centra amen ty hub Te Huika is where the community can come together t also has a wor d-c ass tness center,spa,we ness cen er,bout que hotel,co-working space and a range of d n ng and retai opt ons The art gal ery s a standout feature showcas ng work by acc aimed internationa and New Zea and art sts and hosting exhib ions,workshops and cu tural events Pro ects l ke these focus on longev ty?

Changing Trendsin Health and Home

As ongev y continues to move from niche trend to a defin ng economic and ifestyle force, uxury rea estate stands at a compel ng ntersection of hea th and home Ultimately,the ag ng m ll onaire boom is reshaping he real esta e market: affluent homebuyers are no o low ng o d ret rement p aybooks but creating new ones? bu lding and buying propert es that support extended ifespans,deeper we l-being and richer ife exper ences ?In th s era of ongevity, uxury real estate is no longer just about where you ive but how we and how ong you can l ve there,?Fahm says -

Future-Proofing for Younger Buyers

The longevity conversation in uxury real estate sn? t only happen ng among older homebuyers? it?s start ng decades earlier han you might expect Luxury real es ate profess onals across g obal pr me markets are report ng a notable demographic shift among buyers? namely,an ncrease of buyers in he r 30s and 40s Whi e ultrauxury ownership was once dominated by o der,legacy-wea th buyers,today?s property marke ref ects the growing nfluence of younger h gh-net-wor h ndividua s According to the 2026 Mid-Year Sotheby?s International Realty agent survey,the b ggest surge in homebuyers were mil enn als (those born between 1981and 1996),with 55% of respondents rom around the world seeing an uptick o homebuyers from this generat on in their rea estate marke s,particu ar y those deal ng n properties worth US$5 m ll on or more ?It?s incred b e to see how many buyers in he r 30s and 40s are purchas ng properties n the US$7 m ll on to US$25 mil ion range,?says Anna Sherri l, sen or globa rea estate advisor,ONE Sotheby?s Interna ional Realty n M ami, Flor da ?Some have inher ted wealth wh le others are entrepreneurs n tech nance,cryp o or o her bus nesses they bu lt at a young age?Others represent he next generation of fami y wealth, benefiting from n ergenerationa transfers hat are occurr ng sooner and n arger amounts,she adds ?What is interest ng s hat many younger buyers are a ready very focused on health, ongevity and ant -ag ng,?

Sherri l cont nues In a March 2025 report, UBS notes that demograph c sh fts ris ng ife expectancy and an acce era ing transfer of wea th between generat ons are key drivers of changing homebuyer behavior 6 Aff uent househo ds are p ann ng for longer,healthier ives and entering the uxury rea estate market? not as ate-career consol dators but as ong- erm l fes y e p anners ?Whi e olderhomebuyers tend to pr oritize cont nuity,comfort and healthcare access, younger homebuyers focus on flexib lity and performance? both festyle-driven andinvestment-orien ed Yet the convergenceis unm stakable,? says ElenaArayaCallís, coun ry manager, Costa Rca Sotheby?sIn ernat ona Realty Un ike o der buyerswho mayretrofit properties ater n order to age n place, younger buyers ncreas ngly want homes that are?future-proofed?from thestart? that is des gned to suppor their we l-being over decades ?They expect high-leve wellness amen t es strong des gn, privacy,and turnkey iv ng from he beginn ng,?says Sherr l ?Compared oo der buyers, hey tend to bemore globa ,moredesign-dr ven and ess wil ing to comprom se They are buy ng w th a ong-term ifestyle n mind, even if they do not p anto l ve in thehome ful -time r ght away?-

Four urban destinationswhere real estate investments havestayingpower

More than 4 b l on peop e? 45% of the wor d?s popu ation? now ive n cit es,accord ng to a report re eased by the United Nat ons in November 2025,and h s number s expected to cont nue o rise nto 2050 1 So is the wealth c t es generate Just 1,000 c t es produce near y 60% of g obal GDP,according to Oxford Economics? 2025 Globa C t es Index,re eased in May 2025 2 For real estate buyers,that concentration of capital and a ent is what makes urban property unique y resi ient But not a cit es are built the same

The consu tancy firm Kearney?s Gobal Cities Resi ience ndex re eased n Oc ober 2025,pinpoints what separa es the property markets tha recover and appreciate from those that don?t: effect ve nstitu ional governance,susta nable finance and business env ronments technolog ca nnovat on,soc al cap tal and ntegration into g obal networks 3

Here s what that resi ience ooks ike across c t es where homebuyers cont nue to return,what each o he r rea estate markets offers right now,and the elemen s that make these urban centers n part cular d sp ay serious stay ng power despite various hurdles

BETTING AGAINST NEW YORK CITY ISNEVER A GOOD IDEA.

The Power of C t es

Source: ?Goba C t es Index 2025 Exp or ng the Strengths and Weaknesses of the World?s 1000 Larges Urban Econom es,?

Oxford Econom cs May 2025; ?Wo d Urban za on P ospects 2025,?Un ted Nat ons November 18,2025

New York,New York

?Bett ng against New York City s never a good dea,?says Wendy Arriz,sen or globa rea estate advisor,Sotheby?s Internationa Rea ty - East S de Manhattan Brokerage ?t has a one-of-a-k nd sp r hat can? t be beat ?

In he past 25 years,New York has surv ved a terror st attack a g obal f nanc al cr s s tha began on Wal Street and a pandemic that led to a rise n remote and hybrid work reshaping the commerc al real estate landscape across the city,and sending many residen s to less-dense locat ons with lower costs of iving Despite that not-so-distant h s ory,New York s grow ng,with a 4% year-on-year ncrease in sa es in the first quarter of 2026, generating US$6 2 bil ion n total sa es,accord ng to rea estate market data publ shed in Apr l 2026 by Sotheby?s Internationa Rea ty - New York City Brokerages.4 ?There s an end ess supp y o people who are New York enthus asts,?says Arr z,who s based on the Upper East Side ?That?s where the energy comes from? rea ly dynam c people l ve here,because of he bus ness commun ty and the unrivaled arts For someone who apprec ates that and wan s that,there?s no other p ace that competes?Housing sales act v ty has ncreased s nce 2019,according to Arriz However,desp te eye-popp ng deals for ultra-luxury res dences,overal pr ces have been relat ve y stab e over the past decade ?New York s underva ued.Pr ces have been f at for a long t me and the rest of the nation has had a ot of apprec at on that we haven? t seen,?she exp ains For examp e,the med an price of a Manhattan residence in 2016 was $115 mi lion,The New York Times repor ed in January 2016,5 wh le almost a decade la er,in 2025, t was $128 mil ion,according to Sotheby?s Internat onal Realty - New York C ty Brokerages data 6 ?At some point we?re ikely going to see more apprec ation,?Arriz continues,?so I think there?s a value play n nvesting in New York property right now?

Buyersare ook ng for ?move-in-ready or move- nready- sh?units a though they arewil ing to do asl ght ?n p and tuck?to ahome,such as swappingout the countertopsor renovating abathroom,Arriz adds However a value-dr venbuyer may choose to do the work after purchasing,s ncethey mayreap ahea thy return on investment (ROI).

New York C ty?sproperty market, l ke manyo hers, s also dr venby a ack of nventory Last year,c ty offic als paved the wayfor tens of thousands of new homes,many affordable tobe bu lt in Manhattan and Queens,which wi l take pressureoff other areas of therea estate marke . Recent y,Arr znot ced a resurgenceof luxury buyers moving to Fifth or Park Avenueco-ops for perce vedaccess to schoo s,wider streets anda stronger sense of neighborhood Other buyers wi lpay apremium for a brand-newdevelopment andare less sens t ve to what neighborhoodthey ive n,preferringto ?fol ow the product,?Arrizexp a ns

Tha meansthe outeredges of Manhattan on Frst, Second or Third Avenues; Long Island C ty; Queensor the Financia Distr ct and Battery Park City wh chare not trad t onal yres dent al areas but saw a 20% ump in sa es n 2025,accord ngto Sotheby?s Internationa Realty data ?They don? t seem to mind iving thereas much as prev ous generat ons,?she says The expans on of the c ty?s subway system to SecondAvenue on theUpper East Sidein 2017 no doubt eased the way forsome, Arr zadds

Meanwh e,head ines regarding a proposedtax on second homes n New York City valued at $5 m l on or more7 havegiventhe luxury property market pause ?Many are wa tingto seehow th s proposa unfo ds,? Arr z says ?It is not the first t me real estate professiona s have had to navigatea s gnificant sh ft in themarketplace? She also seesno signsof the real estate market s owing down,espec a yw h Wa l Stree performingso well ?Barr ng someunforeseen s tua ion weexpect the rest of 2026 to bea strong year,?she says u

THERE?SA SPIRIT IN LOSANGELESOF ULTIMATE FREEDOM THAT YOU DON?T W ANT TO GIVE UP. THAT?SW HY THISCITY KEEPSREBOUNDING.

ERNIE CARSW ELL,senior global rea es ateadvisor,Sotheby?sInternat ona Realty - Beverly H lsBrokerage

LosAngeles,California

Natural beauty and warm weather are two of the b ggest attract ons of v ng n Los Angeles,accord ng to Ernie Carswe l,senior g obal real estate adv sor,Sotheby?s Internationa Rea ty - Bever y H l s Brokerage

?We just have t so good out here,?he says ?We?re constantly saying how b essed we are with the weather or w th the beau y of the backdrop,the mountains down to the ocean It?s someth ng that we love and we don? t want to let go of?

Not everyone agrees,Carswell concedes,as there have been some departures of high-net-worth individua s from Cal ornia for no- ncome- ax states like Texas and Forida St l ,home pr ces remain ?wel above he leve s in 2019, n sp te of he coo ing off we?ve had since 2024,?he says

This has been due to two upheavals n the oca property market,Carswe l no es The f rst nvolved the addition of the so-cal ed mansion tax,or the Un ed to House LA Act,wh ch ook effect in Apri 2023 It adds a 4% evy for propert es pr ced at US$5 3 mi ion and up and a 5 5% surcharge for properties conveyed at US$10 6 m l on or more,accord ng to the city?s Off ce of Fnance 8 ?It doub ed the cost of sel ng a home if you own a luxury property,?he expla ns.

Then he c y was devastated by major fires n January 2025 Around 17,000 homes in the A tadena and Pacific Pa sades ne ghborhoods were destroyed, accord ng to a January 2026 report by Co umbia University?s Cl mate Schoo 9 The recovery has been aster in he more aff uent Pacific Pal sades area,whi e Altadena is st l reeling and recovery has been slow,Carswe l says

In addition,fires over the ast decade have also increased nsurance costs in he most suscept ble areas The owner o a four-bedroom home in Brentwood, which ne ghbors Pacific Pa isades,could now pay US$120,000 a year n nsurance,up from around US$20,000 a decade ago Brentwood has a so seen house prices jump more than 50% in the past year as many displaced fam lies look to stay oca ,he no es

But the c y?s housing opt ons are very diverse

?Los Ange es is a patchwork qu lt of va ues,sty es, topography and even fire ab ities,?Carswell says ? There?s a lot to cons der?

Across the Los Ange es metro area,prices were up 0 4% n March 2026 compared o the same time the year before,according to data pub shed by the Ca iforn a Association of Rea ors n Apri 2026 10 Homes cont nue to appreciate,with property investors mak ng money desp e added taxes or fees California a so has one of the strongest economies n the world, ranking as the fourth-largest according to data released by the Internat onal Monetary Fund and the U S Bureau of Economic Analysis n Apri 2025 11

Someth ng less concrete keeps Angelenos n p ace ?There?s a sp r n Los Angeles o ult mate freedom And once you have it,you don? t want to g ve up,? Carswel says ?That?s why th s city keeps rebound ng?

Milan,Italy

Long a bus ness and ndustrial hub,as wel as the f nanc al and econom c capita of Ita y,M an?s trans t on n o a global city has acce era ed in he past two decades. S art ng n 2005,long-abandoned ra lyards n Porta u

Nuova were redeveloped into a bus l ng business distric focus ng on finance,fashion and med a The city started to build international attention,first with the Expo 2015 world fair,and more recently as the host of the 2026 W nter Games,according to a February 2026 report by APNews 12 Many Ital an and internat onal compan es from Prada and Versace to bank ng and energy firms, are now headquartered there,attrac ing sophist cated globa buyers

Italy?s flat tax,wh ch caps foreign income tax for homeowners at EU?300,000 (US$351,000) annually, has attracted a new set of property buyers to Mi an, accord ng to D letta Gorgo o,global rea estate adv sor, Ita y Sotheby?s Internat onal Realty Others want to take advantage of Italy?s Res dence by Investmen Program, wh ch starts at EU?250,000 (US$292,000) accord ng to the coun ry?s M n s ry of Enterprises,and a lows recipients to trave free y through Europe 13 ?That has attracted a ot of u ra-h gh-net-worth individua s (UHNWIs),?says Gorgo o ?More peop e were com ng to Ita y or not on y residency,but the r f scal regime We were always used to nternat ona buyers but they came for second homes The big difference is that now many are buy ng pr mary homes?

Mi an took 11th place in a rank ng o the c t es with the most mi l onaires,accord ng to an Apr l 2025 report by globa wealth advisors Henley & Partners 14 People are coming to the c ty from the U K ,the U S ,Canada and even France where taxes are h gh,she expla ns The at tax s par icularly appea ing for fam l es living in the U K who prev ous y benefited rom that country?s non-dom ci ed tax regime wh ch exemp ed aff uent foreign nat ona s rom paying tax on their overseas nves ments Since that program ended ast year,M lan?s popularity has on y ncreased,and t is now one o the mos requested urban destinations n the country for ore gn homebuyers,accord ng o Giorgolo Mi an?s schools draw fami ies to the city,wh le entrepreneurs are attracted by its business climate and locat on,she adds M lan is ?n the center of Europe,? Giorgolo notes ?You can ravel qu ck y to Austria,France, Sw tzer and,Germany,so there are many advantages?

Vil as with gardens and penthouses are among the most coveted property types according to Giorgo o Many homebuyers are look ng or residences with h storic facades tha have been gut-renovated to make way for ultra-modern nteriors she says

Res dent a assets n M an see cons stent growth, w th ?appreciat on around 3% to 4% Some have had a 7% increase but t?s a cont nuous,steady growth,?she says Stil ,Milan offers re at ve affordabil ty ?In compar son to

other big cap a s,M an? even if there are some very high square-meter prices r ght now? is st l affordab e n respect to other cities,?Gorgo o notes,adding that the genera cos of l ving in the c ty s also good ?Un versities are ess expens ve,and so are restaurants?

Inventory n M an,l ke so many other uxury res dent al dest nat ons s ex remely l m ted Tha ?s espec al y true for move- n-ready homes,which are rare and sell very quickly,she adds P us,Ital ans are very house proud,with around 80% of residents own ng their own home Those res dents do not move often,instead considering homes ?par of the r fam ly and her tage?

But when fam ies are ready to sel trophy assets in Mi an? and throughout Ita y? go very quickly,accord ng to Gorgo o Prices for he most sought-a ter esta es can c imb as h gh as EU?30 m l on (US$35 m ll on)

M lan continues to attract the e ite buyers because of its econom c eng ne,as we as the l festy e t provides and the favorable tax env ronment ?It?s sti l a very human-s zed capital,?Gorgo o says ?It?s a so the c oseness to so many other important places, he interna ional schools,and that the pr ces are cont nu ng o grow at a very good pace?

Hong Kong,China

After years o oversupply,Hong Kong is bounc ng back,accord ng to Teresa Chan,director of business deve opment,L st Sotheby?s nternat ona Rea y,Hong Kong ?Tota transactions reached about 62 000 units for 2025,up 17% from 2024,with pr mary [home] sa es mak ng up 33%,?she exp ains,not ng that overall house pr ces were up 113% year-over-year in October 2025 ?Supp y rema ns high,with 27,000 unsold units and 20 000 new comple ions expected n 2026.?

The pandem c was hard on Hong Kong,w th restr ct ons and econom c uncerta n y s owing the c ty?s property market un i on y recent y Home pr ces n the city rose 3.3% in 2025,the first rise since 2021,Reuters reported,citing government data.15 ?On the sales s de, act vity has cont nued to mprove since March 2026. ?Transac ion volumes are recover ng gradua ly, ed by the pr mary market,supported by stabil z ng nterest rates and mproved sentiment fol owing Chinese New Year,?Chan says ?Homebuyers remain select ve and pr ce?consc ous,but quid ty has clearly improved when pricing is real stic?

In addition,g obal uncertainty has re nforced Hong Kong?s position as a re at vely safe haven for some UHNWIs,Chan notes ?We are seeing grow ng interest from reg ona homebuyers and fami es reassessing

THE CITY?SADHERENCE

TO AN INDEPENDENT COMMON LAW LEGAL SYSTEM PROVIDES A RELIABLE FOUNDATION FOR INVESTMENT, W HILE ITSSIMPLE AND COMPETITIVETAX REGIME ENHANCESW EALTH PRESERVATION.

geograph c exposure,w th Hong Kong v ewed as a stable base for both capital preservation and ong?erm l v ng?

Ma nland Chinese res dents make up as much as 30% of homebuyers in Hong Kong,she adds,with UHNWIs from tech sectors and return ng overseas property nvestors a so show ng nterest Brand-new luxury apar ments and condominiums n areas such as The Peak and M d-Levels are the hot est type of res dence, with older bu ldings on y sell ng at a premium f they?ve been renova ed,Chan explains In he longer erm,rea estate nvestors can expect a healthy prof ,accord ng to Chan ?Prices are forecast to rise 3% o 5% n 2026,?she says,add ng that luxury residences could see up to 5% appreciation ?RO depends on the ho ding per od The long-term is posit ve due to recovery,but the short-term can be vo at le?

One plus: Hong Kong abo ished all additiona taxes for residentia property buyers in early 2024, nc ud ng he Buyer?s Stamp Duty and the Special Stamp Duty,she adds

A l buyers,whether permanent residents or not, are now sub ect to the same standard stamp duty, which has progressive rates based on property va ue The maximum rate is 4 25% for propert es valued at or above HK$2174 mi lion (US$2 8 mi lion),Chan says

She also notes that Hong Kong of ers nvestmentlinked residency for hose who make a HK$30 m l ion (US$3 85 mi lion) nvestment in he city,inc uding property,v a the New Capital Investment Entrant Scheme 16 This program was re aunched n March 2024 to help attract buyers,with the c ty expand ng el gible

investments andpushing to estab ish fami yoff ces with tax concess ons ?It?s alldes gned to boos the c ty?s uxuryproperty market andoveral financial hub status?Chansays

Inst tutional stabi ty,astrategic economic location and a h gh qualityof fearethe b g drawsfor buyers, she adds ?The city?s adherence toan independent common aw legal system provides are iab e founda ion for investment,wh e its s mp eand compet t ve tax regime enhanceswea th preservation?

With tslocat on near ma nland Chinaand the other mun c pal iesof the Greater Bay Area? wh ch includes Macau,Guangzhou andShenzhen? Hong Kong ?offersunpara le ed access toreg onal economic growth,?Chan adds ?This s complemented by wor dc ass infrastructure,a densene work of amenities and a vibrant internat onal cu ture hat co lect vely make t unique y appea ngfor both property nvestment and l ving?

Urban Appeal

C t es are theglobal eng nes of the economy? and there are always homebuyerslin ng up who want ap ece of the act on Urban areas ma ntain he r appea by offer ng access to thear s,culture andpeople sophist ca ed housing opt onsand strong infrastructure For many, it?s the combination of energy andopportun ty that keeps them with n c y l m ts -

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In add tion to nternal market data rom the Sotheby?s Internat onal Rea ty brand and ts aff lia es, this report cites the follow ng data sources and artic es

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