2026 Luxury Outlook Report

LUXURY OUTLOOK

®

6 Endurance Test

Why uxury rea estate s outperforming the overal hous ng market

22 Prime Numbers

Key ns ghts rom the 2026 Sotheby?s Internationa Rea ty®agent survey,from purchas ng second homes to an upt ck in M l ennia buyers

32 Invent ory Ret urns

A rise in hous ng evels n the U S s bring ng new opportunities or buyers

42 Game On How n ernat ona sport ng events can impact uxury property prices? and what ensures a ong-term win

52 Mu t generat ona L ving More and more homebuyers are seeking properties o accommodate family members of a l ages,for bond ng time and bui ding generationa wealth 64 Pr vat e L ves Des gners,agents and new techno ogy are respond ng to the op concerns for uxury homebuyers

70 Propert y Index Learn more about the homes pictured n this report

72 Bib ography Acompilat on of the sources cited n this ed t on

Welcome

A tale of two economies

A Bradley Nelson, ch ef marketing officer, Sotheby?s International Realty, ntroduces the 2026 Luxury Outlook report.

The latest ed tion o our report prov des nsights into trends and developments tha a fec the g obal uxury real estate market

Outperforming traditiona real estate in 2025,both n sa es and ncreased va ue,1 we expect luxury real es ate to continue that trajectory in 2026

The report a so revea s here are effectively two real estate markets? the uxury marke and the general market? which perform d fferently That phenomenon is seen not just n real estate but also in banking, f nance and even the air ine ndustry, where De a Air L nes is focus ng its growth in the prem um sector, as reported by The Wal Stree Journa in October 2025 2 The resi ience of he uxury real estate marke reflects

a premium econom c foundat on tha prov des greater stabil ty aga nst vo at ity

Our research also demonstrates that luxury property buyers are less constrained by geography and macroeconomic factors than other homebuyers Sustained wealth creat on through rea estate and equity nvestments continues to be a key driver of g obal uxury markets Some good news from 2025 tha bodes we for he uxury real estate market n 2026 s that inventory evels have rebounded to where hey were pre-pandemic. A ba anced rea estate market is hea thier and more susta nable, w th more options for homebuyers

To respond to changing market cond t ons, both home sel ers and homebuyers should cons der the ?first mover advantage?? being the first to act decisively when opportun ties arise or sh ft This is often seen in developmen projects that are the first to ad ust their pric ng These pro ects often gain momentum and attract more offers, wh ch snowba ls into the development becom ng the hottes n the market.

For home sellers, that means pr cing rea stica ly rather than opportun stica ly and cons dering the potent al negat ve mpact of carrying costs if they decide to wa a year or two to se l

For homebuyers, the ?first mover advantage?can mean acting qu ck y when a once-in-a-generation opportunity arises In New York C y?s West Vil age, a penthouse recently went nto contract

for US$875 mil ion with Nikki F eld of Sotheby?s Internat onal Rea y-Eas Side Manhattan Brokerage represent ng the buyer The res dence is expected to close around ear y 2027 and wil mark a recordsetting deal for downtown Manhattan 3 Beyond market dynam cs, this year?s report exam nes he broader forces shap ng luxury rea estate decis ons We exp ore how politica and economic pol cies mpact the upper end of res dentia real estate markets, the r s ng influence of cryptocurrency, fluctuat ng inventory n the U S and g obal markets, and how major globa sport ng events can create asting mpacts on the uxury housing markets n host c t es when paired with thought u urban planning in the wider area

Today?s wea thy homebuyers are also prior izing safety and privacy n ways that are reshaping design, from advanced security systems to backup power generators that ensure un nterrupted comfort and pro ec ion

We?re also seeing a mean ng u shift toward mu igenerational living among wealthy households This trend s about more than a festyle? a though c ear y one major goal is spending time with loved ones It is also about ong-term esta e p anning and legacy bui d ng, a way homeowners can transfer some of their wealth during their lifetime by building or buy ng a home for their heirs

The globa perspect ve of the Sotheby?s Internat onal Rea y

brand?s network prov des un que ins ght n o these evo ving trendsand shift ng prior t es Whether it?s uxury housing under construct on n Utah or emerg ng deve opments in Dubai,the brand?s aff liated agentsacross these markets o fer deeploca expert se and comprehensive g obal know edge Th s wor dw de reach enables homebuyers to make n ormed decisions? wherever the r search takes them

Ultimate y, luxuryreal esta e purchases are about much more than a financ al inves ment They are ifes y edriven cho ces shaped by he amen t es and experiences in any given locat on that offer the re axation,stimulation or comfort that wea thy homebuyers seek bo h or themselves and for the r fam lies -

Endurance TEST

Luxury real estateholds itsappeal asan investment? and a lifestyle

Whether driven by economic opportunities or he desire for a ifesty e to share with fr ends and family, property purchases by h gh-net-worth nd v dua s (HNWIs) n 2025, when the luxury rea estate market outper ormed the overal hous ng market, pos tion the sector for cont nued streng h, says Phi ip A. White Jr., president and CEO, So heby?s Internationa Realty

?The general real estate market was more impacted by e evated interest rates and affordabi ity ssues such as higher prices,?Wh te says ?but the uxury real estate market s posit oned for continued ou performance, bu lding on 2025?s robust foundation, which ncluded areas see ng increased nventory, growing nternationa homebuyer act v ty and a arger percentage of al -cash sa es, particu arly at the higher end?

Wh le market performance depends on a variety of factors, the Sotheby?s nternationa Realty a fi ated agents who primar y se homes in the US$10 mi ion and above range were the most opt m st c about their g obal markets for 2026, accord ng to the 2026 Sotheby?s Internationa Realty agent survey (see report start ng on page 22)

?We expec g obal sa es to further strengthen, as luxury property buyers are less constra ned by

geography?White says ?The fundamenta s support ng luxury rea estate remain strong We are see ng susta ned wea th crea ion at he h gh end, inventory rema ns constrained n prem er markets with some growth and ifes y e-dr ven demand shows no signs of stopping?

In the U.S., the contrast between the luxury and general housing markets is s gn f cant, accord ng to Lawrence Yun, chief econom st and senior v ce pres dent of research at the Nationa Association of REALTORS® (NAR) ?The upper end has seen huge home equ ty ga ns, so if homeowners n that pr ce range decide to se , they have add tiona buy ng power,?he says ?We?ve also seen the stock market reach an a l- ime h gh [ n October 2025], which can oosen up the purse str ngs?

Homebuyers at the very h gh end of housing markets tend to be mpervious to macroeconom c factors, says Mark Zandi, chie economist at Moody?s Analy ics ?They?re n great financia shape,?he says ?At the lower end of he uxury marke spectrum, homebuyers are a it le more sensit ve to he r overa l net worth and the s ock market ?

The hreshold for a uxury home in the U S now starts at US$13 mi lion nationa ly and is much h gher n some

RECENT RECORDBREAKING SALES DEMONSTRATE THE PROPERTY MARKET?S STRENGTH AND APPETITE FOR PREMIUM PROPERTIES.

Reserve wil continue to ower interest rates ncremental y, which could n turnhelp ower mortgagerates ?Iexpect the economy to continue to hum a ong nice y withstable unemployment rates and respectab e2% GDP growth into at least the middle of 2026,?he says

Stock market performancea so had an mpact on luxury homebuy ng ?The uxuryhousing market s a ed for a shor timein March 2025 when the stockmarke corrected, but s nce then has beenoutperform ng the lower end,?Yun says ?Ican? t pred ct exact y what wil happen w h he stock market,but based on itscurrent performance, he outlook for uxury rea estate in 2026 is br gh ?

PHILIP A W H TE JR president and CEO,Sotheby?s Internationa Rea ty

markets, according o research re eased n September 2025 by Realtor com®, wh ch defines ?entry- evel?as w thin the top 10% most expens ve homes 1 ?H gh-end? uxury, w thin he op 5% of the market, starts at US$2 m ll on nat onally and ?u tra-luxury,?the top 1%, starts at US$5.4 m ll on In 2016, the entry point for a luxury home nat ona ly was just US$796,922, according to Rea tor com®, while today in Los Ange es, Ca ifornia, en ry-leve luxury starts at US$3 9 m lion, and n New York City at US$2 8 mil on Desp te the po ent al headwinds of s ower ob growth and inflat on, Yun is opt m st c about the prospects or the upper end of the hous ng market in 2026 If mortgage rates cont nue to decl ne, as hey have accord ng to a November 2025 report by mortgage company Freddie Mac,2 he antic pa es a surge of demand ? nterest rate stabil y, f ach eved, cou d unlock sign ficant add t onal homebuyer ac ivity,?Wh te says ?U ra-high-net-worth indiv duals [UHNW s] are less ratesens t ve, but we know they are nclined o be more act ve when f nancia markets demonstrate stab ity?

Yun antic pates that, follow ng the rate cu s in September, October and December 2025, the Federal

Despitesome vo at ity, the overall strongstock market performanceof the last two yearshas increased the net worthof households, which in turnbenef s the luxury rea estate market agrees White ?We?rea so seeing hat uxury homebuyers areyounger, wh ch s a func ion o wealth creation and the transfer of wealth to a new generat on Th s s in contras to he overal hous ng market,where homebuyersare o der?

Another trend sthat periods of high nf at on can spur the sa es of luxury properties as a hedge Values typica ly risealong w h nflation,adding to profitab lity for home sel ers and inf at on evels have hovered around 3%, accordingto data re eased by the U S Department of Labor in Oc ober 2025 3

?Recent record-break ng sales demonstrate the proper y marke ?sstrength and appetite for premium proper ies,?Wh te says ?In downtown Manhattan, New York, a penthouse isunder contract for US$875 m ll on and a co-op n San Franc sco, Californ a, so d for US$24 mi lion In Abu Dhabi,a penthouse in the Four Seasons Pr vate Residences at Saad yat Beach? which is st l under construct on? sold for US$54 5mil ion, we above theprevious record pr ce of US$373 m lion set in 2024, accordingto Abu Dhabi Sotheby?s Internat ona Realty These transactions, as wel as a record sale in O d Greenwich,Connect cut, for US$21 mil ion and a record sale for US$50 m lion n San D ego, Californ a,s gna sustained demand at the h ghest evels?

In the generalhous ng market the governmentbacked mortgageprov der Fannie Mae predicts that home sales? nclud ngexist ng homes and new-bui ds? wi rebound n 2026,r sing anest mated 9.2% over the previousyear, according to a Sep ember 2025 report by Rea Estate News 4 ?

Theimpact of inherited wealth

Wea th creation comes from a variety of sources, ncluding business success, inves ment gains and, increas ngly, inher ance Generational wealth transfers should cont nue to drive uxury real estate demand bui d ng on 2025 flows that reached an estimated US$6 tr l on across wealthy na ions,the equ va ent of 10% of globa GDP, according to research published in June 2025 by The Econom st 5 In Ita y, for example, inheritances represent 20% of the country?s GDP

An estimated US$124 tril ion wi now transfer intergenerat onally through 2048, mainly between the S ent Generation (born 1928-45) and Baby Boomers (born 1946-64) to younger generations, accord ng to a Q12025 report by Cerull Assoc ates, a research and consult ng firm 6 Included n the total figure s an estimated US$25 tri ion n real estate, accord ng to Federal Reserve da a reported by CNBC in August 2025 7

This generat ona wealth transfer, wh ch a February 2025 report in The Econom st terms ?nheritocracy? s creat ng an emerging class of HNWIs who are nfluencing global rea estate markets In the U S , where asset va ues? inc ud ng real estate and he stock market? have risen n recent years wh le inher ance taxes have fallen, the number of wea thy indiv duals cont nues to grow, according to the report.8

Cryptocurrency and luxury real estate

Another source of wea h that s beginning to mpact the luxury proper y marke s cryptocurrency In 2021, a US$22 5 m lion penthouse sale at Arte Surfside in Miami, Flor da made headlines as the first pub ic y known examp e of a crypto purchase, as reported by Forbes n June 2021 9 In 2024, Neyshia Go, g obal rea estate adv sor, Sotheby?s Internat onal Rea ty - Bever y H ls Brokerage, sold a new y bui house n Bever y Grove for US$4 925 m ll on with the buyers cash ng n the r crypto investmen for the purchase. S nce then, some sel ers of luxury properties n Duba Ca ifornia and New York have expressed a wil ingness to accept cryptocurrency

In Duba , 30% o UHNWIs hold crypto assets, wh ch is hav ng an mpact on the real estate market there, according to a February 2025 report by Forbes, citing research by the residence and citizenship consu ancy Henley & Par ners 10 Loans made w th Bitcoin as collateral, estimated at US$8 58 bi ion today are expec ed to reach

US$45 27 b lion by 2030, accord ng to a June 2025 report by Realtor com®, and crypto oans are part cularly popu ar for second homes 11

However, Zand warns that the ncreased use o cryptocurrency for home purchases could generate vo at ity n the luxury hous ng market. ?Crypto pr ces are sub ect to w d sw ngs, which could resu t n s m lar variat ons n uxury home demand,?he says

Conversely, Yun argues that th s vo at ity might be offset by the expanding homebuyer poo ?Ma or financ al institu ions are nvest ng in cryptocurrencies, as are younger people?he says ?Find ng a way to inc ude those assets n underwr ting w dens the poo of homebuyers, wh ch could be benef cia to the luxury housing market ?

trading, accordingto a oint statement ssued in September 2025 12

In June2025, the Federa Housing Finance Agency, which oversees the mortgageprov ders Fannie Mae and Freddie Mac, ordered the agencies o prepare a proposal that wou d a low cryptocurrency holdingsto count as an asset for mor gageapp ican s accord ng o a repor by AP News 13 And whi ethat pol cy has yet to be enacted, a hand u of pr vate lendersa ready a ow t,as reported in August 2025 by Yahoo F nance 14 Otherwise, borrowers are typically required to convert heir cryptocurrency holdings n odollars if they are o beinc uded among their assets

10%

The regulatory landscape around cryptocurrenc es is evolv ng rap dly Since the current adm n stration took of ce n January 2025, there have been moves to encourage the use of d g ta assets in a variety of ways, such as the U S Secur t es and Exchange Comm ss on (SEC) and the U S Commodity Fu ures Trad ng Comm ss on coordinat ng efforts to fac litate crypto

In the yearsahead, cryptocurrency may play alarger ro e n the economyand rea estate, since globa ly ust over half (51%) of Gen Z own crypto assets,accord ng o research re easedin January 2025by Gemini,a finance platform 15 This comparesto 35% of people of al ages g oba ly The research also found that near y half (48%) of Gen Z usecrypto to generate nvestment ncome, compared with41% of a l crypto owners ?

Taxes,tariffs,exchangerates and geopolitics

Tax po icy changes also bode we l for luxury real es ate, par icu ar y the ra s ng of caps on state and ocal ax deductions from US$10,000 to US$40,000, on U S federal ncome tax returns or 2025

?This wi be a game changer in states w th h gher taxes? it?s a c ear addit onal benef t to buy ng a more cost y home if you can deduct more,?Yun says ?Rea estate agents should relay th s message to their customers, especia y n states with higher taxes such as New Jersey, New York, Massachusetts, Maryland, Ca ifornia and Washington?

A potent al w d card for the uxury hous ng marke n the U S is the discussion about rais ng the l m ts on cap ta gains tax exc usions, Zand says Current y, home sel ers can exc ude up to US$250,000 (or US$500,000 for marr ed coup es) in capital gains on their home from the r tax ca culat on If the ru es on cap ta ga ns exclus on change, Zand be eves it could generate more uxury property inventory

Tar ffs, a less pos tive po cy change typically ra se nf a ion and lower economic growth, Zandi says ?Overa , the effective rate of tarif s n late summer 2025 was about 10%, compared o typ cal y 2% in the past I expect tariffs to gradua ly se t e nto an overa effective rate of 15%, which may have a negat ve effect on the U S economy nto 2026 or onger?

However, factors such as tarif s,shift ng exchange rates and geopol tical dynam cs have been less d srupt ve to luxury rea estate than n t ally expected White says ?The b g story is real y about selectivity We?re seeing wea thy homebuyers become much more part cular about where they nvest. Compared to during the pandemic, we?re see ng that homebuyers are gravitat ng toward established uxury property markets w th more so d fundamen a s, rather than trying to chase speculative opportun t es?

Currencyfluc uat ons are a so creating nteresting dynam cs, hesays ?Rea estate marketsin fore gn countr es that seemed expens vesix months ago might ook a tractive now, depending on exchangerates Addit onally,ongo ng geopo t cal tens ons have dr ven homebuyers oward regions they viewas more secure and stable wh etar ff uncerta nty s making some nternat ona homebuyers more caut ous about timing heir purchases?

International viewpoints and local trends

Agents w hin he Sotheby?s Internationa Realty network say tha po t cal and economic s abi ty are extremely mpor ant factors,along w th secur ty and pr vacy, n a homebuyer?scho ce of where in he wor d to buytheir residence, accord ngto the 2026 Sotheby?s International Rea ty agent survey ?We con inueto see uxury real esta e buyers increase heir portfo o o homes n different areas, both in the U S and internat onal y,?White says ?Our collaborat on with Concierge Auct onshas shown us that uxury homebuyers o ten b d on mult pleproperties across various locations Th s g obal perspec ivere n orces our v ew of the rea estate market as a un fied landscape,where buyers cons der nvestments not ust loca ly but international y?

However, hebe ieves that not al high-end real estate markets w llperform equa y ?We expect continued geograph c se ect v ty Primeurban property markets w th strongeconomic drivers world-class amenities and imited supplyw ll cont nue to outperform ?

As a ways rea estate trends are high ylocalized ?The nven ory story variesdramat ca y by price point and ocation,?Wh tesays ?We?resee ng opportun ies emerge n certa n segments and markets? in Washington,DC , and Houston, Texas, n the U S ,and abroad n Portugal, Spa n and Thai and? which areshowing mproved nven ory leve scompared to recent years, part cular y in ??

the luxury range The key for homebuyers s to understand these dynam cs? what appears to be a homebuyer?s market n one segment may st l be highly compet t ve in another, even w th n the same geograph c area?

Wh le there are uxury properties in numerous areas w th n the U S , there are some locat ons with a part cular y high concentrat on Seven of the top 10 most-expens ve z p codes in he U S are n Southern Cal forn a, but Fisher Is and in M am Beach s he most expensive, according to an August 2025 report by Rea tor com®16 The other two East Coast zip codes on the l st Bridgehampton and Water Mi , New York, are both n the Hamptons on Long Is and These locat ons represent ?ultra- uxury territory where vir ual y every home on the market s a mu tm ll on-dollar l st ng and he ma ority are among the top 1% most expens ve l st ngs w thin he U S ? a t er for those priced at US$5.7 m ll on and up,?Wh te says

E?RE SEEING W EALTHY HOMEBUYERS BECOME MUCH MORE PARTICULAR ABOUT W HERE THEY INVEST.

ZANDI

Is es yle a grow ng dec sion-making factor for today?s homebuyers?

Most So heby?s Internat ona Rea ty aff iated agents say t is, but it var es across regions

Source 2026 Sotheby?s n erna ona Rea y agen survey

60 % 71%

n Sou h/ Lat n Amer ca inA ca/ M dd e East g obal y

inOcean a intheCar bbean

Lifestyleisdriving choice

In the 2026 Sotheby?s Internationa Realty agent survey, more than ha f (60%) of affil ated agents said that l estyle had been a more important factor to uxury homebuyers than in prev ous years (see report on page 22) The emphas s on lifestyle was particular y mportant to homebuyers n Oceania, the Car bbean South and Lat n Amer ca, and A r ca and the Middle East ?L festyle-driven property markets are certa nly thr v ng?White says ?Ski destinations cont nue to show exceptiona strength In fact, Aspen Snowmass Sotheby?s Internat onal Rea ty listed a US$300 m l on estate n August 2025? w th 74 acres and just a m le from own? which s the most expensive home ever l sted in the U S , according to an August 2025 report by Forbes 17 And n October 2025, Puerto R co Sotheby?s Internat onal Rea ty

is ed a mult generationa estate or US$65 m ll on n Puer o Rico, which wi be the h ghest-pr ced property here if t sel s near the asking price, accord ng to an October 2025 report by The Wa l Street Journal?18 ?LegacyProperties Sotheby?s Internationa Realty n Maine achieved the sa e of ahome near the Bush fami y compound nKennebunkport for US$12 mi ion in July 2025? after just 90 m nutes on the market This was o owed by the September 2025sa e of Bette Davis?s ormer estate n CapeE zabeth, Ma ne,for US$13 4 m lion, mark ng the s ate?spr c est deal n a decade? ?We?re also seeing strong per ormance n property marke s that comb ne mu ip el esty e e ements, suchas sk -to-golf commun t esor w ne country properties,?Wh te says ?Add ionally,the wel ness trend hasevolved s ncethe pandemic,w thhomebuyers pr oritizing in-homespas and ho e -style amen t es,particular y in branded residences???

Cross-border transactions

The U S remains a popu ar ocat on for UHNWIs look ng to buy a home Accord ng to a July 2025 report by NAR on international resident al transactions in he U S , foreign homebuyer act v y for existing homes ncreased by 44% from Apr 2024 through March 2025, the first year-over-year growth s nce 2017 19

?From our perspective, the primary factor in ts cont nued appea is the relat ve stabi ty of U S real estate, wh ch s espec ally compel ing am d ongoing geopol tical uncerta nt es,?Wh te says ?We ant cipate this continuing throughout 2026?

Yun also bel eves hat the current U S adm nistration?s push to introduce a ?golden visa? for fore gners wi ing to pay US$1m lion or a path to cit zenship w l open more opportunit es ?I expect to see more Ch nese homebuyers n the U S because the r economy is expanding, and there are more m ll ona res and b l onaires here who want to inves the r money in the U S ,?he says ?The economy in Ind a s also growing, so we?re l ke y to see more investors from there?

Accord ng to NAR?s research, China remains the top coun ry of or g n among foreign rea estate buyers, w th Canada, Mex co, India and the U K round ng out the top five

When it comes to the locat on of U S rea estate investmen s, traditiona patterns continue to ho d, Wh e says Flor da eads, accounting for 21% of purchases by foreign homebuyers, fo owed by Cal orn a, Texas and New York, according to NAR

?What?s part cular y nteres ing is the growing interest n lifestyle dest nat ons beyond the traditional gateway c t es? p aces ike Char es on, South Caro ina; Nashv lle, Tennessee and ski markets in Co orado and Utah,?White says ?These offer compe l ng va ue propositions for nternationa homebuyers seek ng l festyle experiences? Trave patterns a so reflect where peop e buy property, part cular y second homes ?Rather than co lecting propert es in numerous dest nat ons, homebuyers are focus ng on places where they plan to spend ex ended periods,?Wh te says. ?American Express Trave ?s March 2025 G obal Trave Trends Report high ighted that travelers were prior tiz ng exper ences that b end luxury, cu ura mmersion and personal connect on? and that?s what s dr v ng dec sions?20

Foreign homebuying activ ty in the U S

Source Na onal Assoc a on of REALTORS® ?Internat onal Transact ons n U S Residen al Rea Estate,?Ju y 14, 2025

Spotlight on global markets

W hileglobal politicsand economicsplay a rolein high-end property purchases, national and regional factorsarealso influential,asevidenced in trendsacross key marketswithin theSotheby?sInternational Realty network.

New York,New York

The dearth of inventory at the upper end of the market? above US$20 m l on? in New York C ty has kept prices high even if there are fewer sa es, says Dan ela Sassoun, global rea esta e advisor Sotheby?s

In erna iona Realty - East S de Manhattan Brokerage ?We?re see ng ots of fore gn homebuyers, espec al y from Braz l, Argentina, the Middle East and London in par because the U S do lar is cheaper,? she says ?Homebuyers have rea ized they can get 10% more property value for the r pesos or pounds?

Other sources of demand nclude younger homebuyers who have benefited rom the ?great wea th transfer?between o der generations and their chi dren or grandch dren, and people who moved to Florida and want or need to be n New York City more of en ?For many of our c ients, a place n Manhattan s a second home where they spend three or four months every year,? Sassoun says ?These homebuyers are not bothered by nf at on, but they are sensit ve to the mood in genera so hey?re a tt e more cau ious now about he econom c cl mate They are also more ke y to shy away from some hing that needs work because o the potent al costs of construction?

Loca pol ics has been on the m nds of property owners, too ?Af er the New York C ty mayoral pr mary [in June 2025], we got 15 to 20 cal s a day from our c ents wanting to know what the po t cal c mate wou d mean for homeva ues,?Sassoun says ?We found tha prices held steady under every mayor go ng back 25 years, despite correct ons af er 9 11[in 2001], the start of the Great Recess on [2007-08] and the pandem c [from 2020] which reassured them ???

Aspen,Colorado

While there are p enty of ski resorts around the wor d, few can match the year-round attract on of Aspen, says Mandy We gos, g obal rea es ate advisor, Aspen Snowmass Sotheby?s Internationa Realty

?Some people come here n the summer only or n the w nter to ski, wh le others l ke the shoulder seasons in spring and fall, when it?s quieter What?s unusua about Aspen s that wh le we have a l the natura beauty and outdoor mountain act vit es, we also have downtown, which s a mecca for art, music, h gh-end shopp ng and restaurants, a ongs de charm and h story.?

?We never have much nventory par icu ar y h gh-ca iber propert es but we always have demand,?Welgos says ?There?s a o of competit on for sing efami y homes and condos within wa king or bik ng distance of downtown, bu some peop e pre er larger estates for pr vacy n the mountains?

To keep Aspen?s charm ntac , he surrounding P tk n County restricts newly bui t homes to a maximum of 9,250 square feet Welgos recent y isted a proper y less than a m le from downtown Aspen with two parce s o and, each 36 acres, along w th two sma ler parcels of an acre each ?One of the larger parcels has a beaut fu 19,500-square-foot house on and a six-acre ake, wh e the other has an entit ement hat al ows someone to bui d another house of hat s ze, unt l t exp res n 2028,?she says ?The property has guest and employee housing onsite, a ong with space for 45 cars, wh ch s extremely valuable in Aspen,where there?s a shortage of both housing and park ng.?

London,U.K.

The luxury housing market in central London s bucking the trend of vo a i ty seen in some other markets, says A ex Is dro, managing d rector of Un ted K ngdom Sotheby?s Internat onal Rea ty ?Transactions ncreased sl ghtly, although va ues were down a ittle during the first half of 2025 Because pr ces are slightly weaker than norma , averaging about UK£7 m lion (US$9 4 m lion), domestic homebuyers have been our largest group of c ents?

Domestic homebuyers ooking for resident al neighborhoods are buying in Be grav a, Chelsea and Kn gh sbr dge, wh le internat onal property buyers are drawn to Mayfair ?Americans are the second-largest poo of homebuyers, although many of hem dec de to ?try before they buy?and rent for a wh le before purchasing property,?Is dro says ?Our other nternationa buyers now are coming from nd a, Kuwait and Italy? A proposal to mpose an addit onal tax on homes n the U K valued a more than UK£2 mil on (US$2 7 mi ion) from 2028, as part of the government budget, could mpact luxury market sa es, the BBC reported n November 2025 21 Desp te concern about tax aws driv ng internat onal homeowners out of London, Is dro says the c ty is resi ient ?We?ve seen some peop e eave,but others have seen it as an opportun ty to move in UHNWIs who own homes va ued above UK£5 m l on (US$6 7 mil on) are ho d ng onto the r property or renting it rather than sel ng People see London real estate as a stab e asset that?s much less vo at e than some other nvestments?

The vast ma ority (92%) o homebuyers Isidro?soff ce dea with dur ng he f rst ha f of 2025 paid cash, which is a testament to the strengthof the So heby?s Internat onal Rea y brand and ts cl ente e,he says ?Our market shou d rema nas it s for the next few years,unt we see another change in our government In the meant me,we?ll ke y start to see more international ac ivity n London because people like the safety of invest ng here?

Dubai,United Arab Emirates

The migrat on of wea th to the U A E rom the U K and Europe has led to record sales for both ex stinghomes and yet-to-be-bui t uxury propert es,accord ng to Le gh Wil iamson, manag ng d rector, Duba Sotheby?s Internat onal Rea ty ?Inventory rema ns abou he same n Dubai,and we s i don? t have enough supp y or the amount of demand from UHNWIs mov ng here for the r permanent home,?W ll amson says ?U K homebuyers are s i number one for us,and with Europe go ng through changes many ove what Duba has to offer We a so see people who ve in the U A E trad ng up, as business continues to grow here?People from Ind a, Pak stan,Saudi Arabia and Russ a are also keen homebuyers, and now Canadians and Amer cans areshowing up as we Wh le some are pure yinvesting n property for the 5% to 8% return on investmen ,others are purchas ng second homes and primary res dences ?We?reseeing a rise in fuserv cebuild ngs, like those we?ve seen n Hong Kong, Ch na and New York C ty or years,?W liamson says ??

THERE?SBEEN A MODEST LIFT IN INVENTORY THANKSTO THE COMPLETION AND LAUNCH OF SEVERAL NOTABLE HIGH-END PROJECTSOVER THE PAST YEAR.

WOODY MAH,managingd rector,L st So heby?sInternationa Rea ty,Hong Kong

?Branded residences continue to be the driv ng force for off-p an sales Waterfront property has a ways been prime rea estate n the U A E , a ong with golf-course living n a gated commun ty Some of the world?s top architects are com ng up with incredible des gns that are tru y nspir ng?

She ant cipates pr ces for resa e assets to evel off, especial y some that have been overpriced ?Home sel ers w ll have to adjust to the market when they?re look ng for a sa e, wh ch makes it al the more mportant to speak with a qua if ed, experienced real estate agent who s go ng to be hones and transparent ?

Hong Kong,China

The luxury property market n Hong Kong cont nued its steady recovery n 2025 af er the d sruptions of recent years says Woody Mah, managing d rector,Lis Sotheby?s International Realty, Hong Kong. The number of high-end transactions was up 8% to 10% dur ng the f rst ha f of 2025, w th pr me locat ons such as The Peak, Mid-Levels and Repulse Bay record ng price growth of 2% to 4%, he says ?Much of this momentum is being driven by susta ned low interest rates and the return of nternationa homebuyers, part cularly rom ma nland Ch na and across Asia There?s been a modest lift in inventory thanks to he comp et on and launch of several notable high-end projects over the past year Even so, stock remains tight n top- ier distr cts such as Cen ra and Ts m Sha Tsu in Kow oon, where demand cons stent y outpaces ava abil ty Th s mba ance is keeping sustained

upward pressure on va ues, especia ly in the u tra uxury bracket above HK$100 mi ion (US$12 8 m ll on), wh ch continues to perform strongly?

Hong Kong?s role as a ma or financ al hub, combined w h ts enduring appeal o UHNW homebuyers, continues to support con dence n the real estate marke , Mah says Luxury homebuyers inc ude ma n and Chinese investors, ocal res dents, ong-term expatriates and UHNWIs from he ma n and, many of whom have Hong Kong permanent residency

The biggest change in 2025 was the government easing some of he toughest property-market cool ng measures, such as remov ng ex ra stamp dut es or non-loca and second-home buyers, and relaxing mortgage rules ?For many homebuyers, that?s taken m ll ons of do ars off the up ron cost and made financing h gh-value homes much eas er?

Mah says He sees an opportunity or the Sotheby?s Internat onal Rea y globa network to assis the ncreasing global mindset o aff uent ocal homebuyers, as dest nat ons ke Japan, Thai and, Austral a, New Zea and and the U K become especia ly attractive

Queenstown, New Zealand

In he Southern Lakes reg on of New Zealand, sa es in the NZ$4 mi ion (US$2 3 m l on) and h gher uxury property market? and tota sales volume? ncreased n 2025,says C odagh Ha , ch ef operating officer, New Zealand Sotheby?s Internat onal Rea y

?Inventory evels are down, so our dr ve now is to get more istings,?Hall says ?We wan to be ready? domes ic demand and g obal geopolitica turmo l are dr v ng homebuyers our way?

New Zealand?s prime minister, Chr stopher Luxon, announced that fore gn buyers can now purchase homes valued at NZ$5 m ll on (US$2 9 mi ion) and above, accord ng to a September 2025 report by Mansion G obal 22 Prev ous y, they could on y buy property f they invested at least NZ$10 m lion (US$5 8 mil ion) n government-approved assets. Only overseas homebuyers from Austra a and Singapore were exempt ?This wil reopen the doors to internationa homebuyers who are a ready look ng at New Zealand and the region for property,?Ha says ?We?re seeing sign f cant recovery in nternationa v s or numbers, reaching around 87% of pre-pandemic leve s The major ty of them are Australians?

Ha l a so says the New Zea and Sotheby?s Internat ona Realty website is record ng increasing numbers of internationa v sits, particularly from the U S , wh ch nd cates that the pol cy change wi have a pos t ve mpact ?Th s is particu arly relevant to us, as we are the only tru y g obal rea estate brand n the market and can open doors to vendors in a way no other company can?

In the meantime, there has been a b g increase n demand from ocal homebuyers for ock-and- eave ho day homes c ose to the Queenstown central business d strict and for rura properties w th space pr vacy and access to outdoor pursuits, because pr ces are s i be ow the r peak values

Market transitionsrequire global expertise

The Sotheby?s International Realty brand?s global network enables it to provide coordina ed gu dance across real estate markets, ensuring cl ents understand comparative va ue and opportunity, whether they?re cons dering domest c or internat onal propert es, Wh te says ?Our affi iated agents?expertise becomes par icu ar y valuable dur ng market transitions For home se ers, we develop strategic pric ng approaches by analyzing current market act v ty and homebuyer preferences Properly priced uxury proper ies con inue to attract strong interest ?For homebuyers, the Sotheby?s Internat onal Rea y brand

provides market ins ghts to he p them den ify va ue and recognize opportunit es

Sales volumes n 2026 w ll ikely depend on pr cing discip ne? accurate ypriced uxury rea es ate inventory shou d cont nue to move,whi e overpriced propert es may s ay on themarket for onger The biggest differentiator wi be scarc yand location qua ty, withproperties n supp y-constrained markets mainta ning their prem um pr cing power.

?WhileI don? t have a crys a bal , n June 2025 NAR pro ected home pr ces to grow by 4% in 2026, and the luxury rea estate market has h storically shownresil ence during periods of broader uncertainty,?Wh te says 23 ?I expect uxury proper ies n prem er locations to continue command ngprem ums.?-

PRIME numbers

W hat the2026 Sotheby?sInternational Realty agent survey tells usabout thestateof luxury property markets worldwide.

The 2026 Sotheby?s Internat onal Rea ty® agent survey s a comprehensive po of the brand?s luxury rea esta e agents and franchise owners For homebuyers and se lers, the survey revea s key factors impact ng today?s uxury real estate market? nclud ng the ex ent to wh ch geopol tical uncertainty is exer ing an influence around the world, the continu ng strength of cross-border demand, and the general steadiness o home prices? al ow ng them o make n ormed decisions based on the insights and op nions of the network?s wor dwide aff liates and agents

One of he key f ndings is the unique nature of the g obal uxury property market: In 2025, only 51% of homebuyers worldwide purchased a property as their primary residence. The percentage was higher in North Amer ca, South/ Latin Amer ca, Europe and Ocean a, but much lower in As a, Afr ca/ M dd e East and the Car bbean

?Affluent buyers th nk n terms of property portfolios rather than s ng e homes,?says Ph ip A White Jr , pres den and CEO o Sotheby?s Internat onal Realty ?They are often sp itting their t me between mu t p e res dences For many Sotheby?s International Realty c ients,

th s sn? t the r first home? ?s the second, th rd or somet mes even the fourth property n their por folio?

Second-home ownersh p accoun ed for 28% o uxury purchases g obally? a significant share that underscores how common mu t -proper y ownersh p is among affluent buyers Reg onal variations were modest, with second-home purchases r sing o 34% in As a and 33% in the Caribbean? but more local markets revea ed dramatic patterns

In F orida, for nstance, 54% of luxury purchases were second homes

Th s concurs with an August 2025 repor from wea th nte igence firm Altrata which ident f ed Miam as the top dest nat on for ultra-h gh-net-worth nd vidua s (UHNWIs) look ng for a second home, fo lowed by New York, London and Los Ange es 1

The agent survey revea s wha s driv ng today s affluent buyers across seven globa reg ons: Nor h America, South/ Lat n Amer ca, the Car bbean, Europe, Africa/ Middle East, As a and Ocean a a so shows where the market is heading in these places? where prices are r sing, where they are fa ing and where compet tion w h fore gn buyers is increasing ?

Themotivationsof luxury homebuyers

Wh e see ng an apprec ation in their home?s va ue or benefit ng from renta income from a second or th rd property were cons derations for many homebuyers, rela ively few purchases were driven pr marily by such motives. Purchases made main y for capital growth or renta income each accounted or just 10% of sales on average across the world However, n certain reg ons this f gure was higher, w th homebuyers in As a and Africa/ Middle East more interested in capital growth and many in the Caribbean and Sou h/ Latin America seeking properties they cou d rent out Secur ty and pr vacy were the top prior ies among homebuyers, with most agents report ng these factors as grow ng concerns for the r c ients (see page 64 for more on his top c) An area?s economic and pol tical stab lity were also major factors An area?s local tax structure was a significant dr ver of n erest,w h more than ha of responden s saying a ?favorable tax environment?was a key concern This was particu arly true in Europe and the Caribbean, where at least three-quar ers of agents said heir c ents cited taxes as a mot vator n choos ng a future home there

Multigenerat onal iv ng is a so becoming ncreas ng y mportant in certain reg ons, inc ud ng Afr ca/ M dd e Eas , North America, and South Lat n Amer ca (for more on th s topic, see page 52)

Economic and po tica mpacts on luxury markets

or cons derations among homebuyers

%

Economic and political impactson markets

Sotheby?s Internat onal Rea ty aff liated agents were asked to evaluate factors tha had impacted the r oca markets over the past 12 months and whether those factors had had an overal pos tive, nega ive or unchanged e fect

Global y, inflation was dentified as the b ggest obstacle? apart from in As a, where responses were evenly sp t between both pos ive and negative mpacts

This ref ects a trend seen across the continent, w h The Econom st reporting in September 2025 that, apart rom in Japan and Bang adesh, ?the average rate across the con inent?s 10 biggest economies s a tame 13% Consumer prices have fallen outright in China, the b ggest of al , and n Thailand Other Asian economies, ncluding the Phi pp nes are not far from def ation. Even in inf at on-prone Ind a, pr ces rose by ust 16% in the year to July 2025, the slowest rate since 2017?2

Meanwhi e, n North Amer ca, interest rates were a bigger concern, with just over two-th rds of agents reporting a negative nf uence on the r markets

Th s view was echoed in the Car bbean and South/ Lat n Amer ca

However n erest rate changes have had a more pos tive mpact in Oceania and Europe. W th the U.S. Federa Reserve cutting benchmark nterest rates n September, October and December 2025,3 homebuyers?concerns cou d be alleviated somewhat in 2026 According to commentary re eased in September 2025, he Mortgage Bankers Association n the U S forecasts ?a 30-year mortgage rate expectation of 6 5% by the end of the year, decl n ng to 6 2% by the end of 2027?4

Politics was a so a s gnificant factor n homebuy ng cho ces More than ha of agents n North America, South/ Lat n America and Oceania said domestic po it cs was hampering their marke s and the globa politica s tuation was hav ng a negat ve effect on severa markets, particularly in North Amer ca

Respondents in As a, the Car bbean and Afr ca/ M dd e East were moreneutral or upbeat about the impact of bo h

Real estatemetrics and transactions

Agents a so prov ded ins ght nto local property market metrics,inc ud ng the number of homebuyers and homese lers, nventory leve s and the number of sales over the pas year

In ermsof supp y, nventory leve s rose around the world, particu arly n North and South/ Lat n America The Caribbean wasthe on y region where agents reported essinventory

Homebuyer demand varied wide y across the globe, w th the b gges boost reported n the Caribbean,followed by Afr ca/ M dd e East and Oceania po nt ng to a se lers?market con inu ng in these ocat ons Meanwh e, homebuyershad esscompetition n South/ La in Amer ca and in North America ?

The number of transactions in uxury property markets also varied w de y by reg on Sales act vity ncreased in the Car bbean Asia and Europe, accord ng to agents, wh le Ocean a saw a decrease

The survey a so captured data on home price changes over the past 12 months Agents in both Afr ca/ M dd e East and Asia report double-digit pr ce growth, part cularly n Japan, where agents reported 214% growth Dubai a so showed except onal strength in the region ?Dubai cont nues o demonstra e except onal resil ence and growth, with doub e-d g t price appreciat on dr ven by sustained demand for pr me and

super-pr me properties,?says Le gh Borg, executive par ner, Dubai Sotheby?s Internat onal Rea ty ?The market has evolved beyond short-term specu at on; today?s buyers are long-term investors who see Duba as a globa city of stabil y, soph st cation and increas ng opportun ty Recent landmark transact ons,inc ud ng severa record-break ng v lla and branded residence sales, reflect he depth of wea th entering the market and the con inued confidence in Dubai?s uxury real estate sector As inventory tightens and new launches grow more curated, we expect prem um propert es to ma n a n the r upward tra ectory into 2026?

Change in market indicators over the past 12 mon hs

Source: 2026 Sotheby?s n erna ona Rea ty agent survey

n reg ons where pr ces decreased, ncluding Nor h America and Europe, the reduct ons were re a ively modest Oceania showed a larger drop, dr ven primar y by a 13 1% dec ne n New Zea and Sotheby?s International Realty affil ated agents also provided forecasts for the r local housing markets through mid-2026 Agents n severa reg ons sa d they expected to see property pr ces grow, inc ud ng in Ocean a South/ Latin America and Europe Prices in As a are pro ected to continue growing, bu at a s ower pace than n 2025 And n the Caribbean and North America, agents antic pated a sma l decline ?

Theriseof Millennial homebuyers

Several groups of homebuyers are becoming more active accord ng to the survey, part cular y M llenn als (born 1981-96) and fore gn buyers look ng for a ?go den v sa?or other residency benefits

The biggest umps in the number of Mil enn al buyers of uxury properties were in the Caribbean,where 75% of agents noted an increase, followed by South/ La in America (64%) and As a (59%) ?As global economies sh ft,we are continuing to see an nflux of new primary and secondary

homebuyers choos ng Puerto Rico,?says Or ana Juve er, vice president and broker, Puerto R co Sotheby?s Internat ona Rea ty.

?We are ncreas ngly see ng that HNWIs in part cular are drawn to the we lnessinsp red quality of ife n warmer cl mates, such as we have here in Puer o Rico Furthermore, business ncentives are more important than ever due to rising costs of iv ng and do ng business in he U S Th s s driv ng Mi lennia s, many of whom are for the first t me cons dering the r fami y?s ong-term prospects, to choose ocat ons hat are both cultural y a gned and ax-favorab e for bu ding family wea h?

M llenn als are a so becom ng more act ve in North Amer ca, primar y n the U.S., accord ng to 44% of agen s there. This concurs w th nd ngs n the 2025 Home Buyers and Se lers Generational Trends Report, re eased by the Nat onal Association of REALTORS®in Apri 2025, which found that M lennia s made up 29% of recent homebuyers in the U S , second on y to Baby Boomers (born 1946-64), who made up 42% 5

The Car bbean islands, meanwhi e, remain a hotspo for those ooking for so-called golden visas? c izensh p and res dency benefits g ven to foreigners who make a s zable investment n a country?s economy A large major ty (83%) of agents working n the reg on reported an increase n th s type of buyer, compared w th a globa average of nearly half The lure of Oceania for fore gn buyers is also above average, with more han ha f of agents not ng an up ick

An increasingly active overseasmarket

Fore gn homebuyers are active a over the wor d According to the survey, 82% of agents sold propert es to homebuyers from outs de the r own countr es with Africa/ M dd e East, Europe and the Caribbean see ng the highest internat onal act vity North Amer ca was the outlier, w th a litt e over a th rd of respondents dealing w th overseas purchasers, though this f gure rose to 61% in F orida

Among the agents who so d to bo h domestic and foreign buyers, a l t e over one th rd of their cl ents were from outside the coun ry The Car bbean and South/

Lat n Amer ca had the highest proport on, w th more than half of buyers coming from abroad, followed by Afr ca/ M dd e East and Asia

Wh le in Afr ca/ M dd e East and South/ Lat n Amer ca most agents reported an increase of overseas buyers over the past wo years, in other reg ons agents reported ac ivity consistent with previous years

Look ng specifically at overseas buyers who want to reloca e permanently to another country, the survey results show a higher proportion n trop ca locations More than 90% of agents in the Car bbean and roughly 80% rom Ocean a and Sou h/ Latin America noted an increase there, as we as a of the responden s from Afr ca/ M dd e Eas Agents outside he U S dentified American buyers as the dom nant overseas buying orce n their markets, inc ud ng across Asia, the Caribbean, Europe and South/ Lat n Amer ca In Oceania, however, homebuyers from China were the b ggest overseas p ayers They were a so the th rd most act ve in the U S , beh nd Canadians and British homebuyers Meanwhi e, n Asia, apart from the large American presence, mos foreign homebuyers came from other parts of the continent ncluding Hong Kong, S ngapore and Ma aysia ?In many globa c ties,such as Singapore,London and Hong Kong, governments have introduced po ic es to curb property pr ce increases? such as add tiona taxes and purchase res r ct ons? wh ch havemade acquis tions more d fficu t,?saysSara Grace Takano,global rea estateadv sor, L st Sotheby?s In erna iona Realty,Japan ?In contras , Japan mposes relatively few restr ct ons on fore gn buyers, and the depreciation of the yen has created a strongsense of va ue Moreover,Tokyo?s excellen nfrastructure, safety and g obal reputation make t anattract ve ?safe asset?dest nation for wea thy nd vidua s and institutiona nvestors worldwide? As the survey findings reveal, despite vary ng regiona conditions luxury real estate markets continueto operate g obally w th sustainedcross-border act vity. Homebuyers can use these trends to den ify ocations that fit heir ifes y e preferences and meet the r needs This can he p them establ sh where the best opportun t es for the r next purchase can be found -

Change n market ind cators for foreign buyers

Source: 2026 Sotheby?s Internat onal Rea ty agen survey

Mi lenn a s (born 1981-96

According to a Sep ember 2025 report n the Guard an 6 s nce the requirements for New Zea and?s Ac ive Investor P us visa were relaxed n Apr 2025? owering nvestment thresho ds and reduc ng the time app cants mus spend in the country to estab ish residency? the number o foreigners who have applied has r p ed, with most com ng from the U S and China

Inventory RETURNS

Asthesupply of homes increases,sellers need toensure that their propertiesare properly priced and marketed

Housing prov s on in the U S. is star ing to cl mb again, according to data re eased in September 2025 by the U S Census Bureau, which found there were 124,000 new homes wait ng for homebuyers? the highest number in 16 years according to an October 2025 report by Scripps News 1

Hous ng stock had been low for several years previous y, partly due to a rea estate buying spree prompted by the COVID-19 pandem c and histor cal y ow interest rates For example, more than 2 1mil on more peop e became homeowners in 2020, according to a March 2021report by Pew Research Center 2 The current r se in housing stock means that in many areas homebuyers now have more opt ons, and tha ncludes the luxury sector of the market

However, not every region of the g obe has seen an ncrease in supp y Inventory rema ns tight in the capita c t es of Europe, where purchases by nstitutiona investors have tripled over the past decade, says a July 2025 report in the Guardian,3 as well as in the Northeas and Midwes regions of the U S , accord ng to August 2025 data re eased by Rea tor com®4 But new

opportun ies are com ng onl ne e sewhere, as branded residences are being bu t at speed in Spa n, Portugal and beyond ?We?re see ng interest ng regiona patterns emerge, and t?s mportant o remember that uxury rea esta e often moves ndependent y of broader market trends,?says Tammy Fahm , senior v ce president, g obal servic ng and strategy, Sotheby?s Internationa Realty ?Some luxury property markets are exper enc ng increased nventory as homebuyers explore new dest nat ons, wh le others are seeing tighter supply Add t ona ly, areas with the greatest lifestyle advantages continue to a tract inves ment interest ?

In many places l st ngs are being buoyed by new developments, especial y branded residences Th s h gh-service, low-maintenance mode is expand ng nto new markets and cont nuing to attract homebuyers? a July 2025 report by Yahoo

F nance est mates that the M dd e East and Afr ca w l see 270% grow h n branded res dences over the next seven years 5

It?s also apparent hat ?wha ?s o d is new again,?as the adage goes, as deve opers renova e h storic buildings with modern inter ors Th s is cer a n y the case in Spain, where aff uent homebuyers from South Amer ca prefer trad t onal exteriors w th an o d-school feel, says Ugo Bagration, regiona d rector for East Andalus a, Spa n Sotheby?s Internationa Realty

S Census Bureau Sep ember 2025

?Overa l, the luxury real estate market is reward ng quality and authen ic ty over s mp y having a home for sa e,?Fahmi says ?While some homes may rema n on the market for s gnifican ly longer, exceptiona properties n popu ar reg ons sti l attract homebuyers relatively quick y?

Inventory increases acrosstheU.S.

The number of homes on the market n the U S dropped to h storic lows dur ng the pandem c, according to a Ju y 2025 report by the Federal Reserve Bank of St Louis 6 Th s frustrated cash-ready homebuyers who faced imited inventory and intense compet ion But the supply has now bounced back.

In response to quest ons for his report, the Nationa Assoc at on of REALTORS®(NAR) noted there were f ve months?worth of inventory of ex st ng homes pr ced over US$1m lion ava lab e in the U S. in October 2025,up from 4 5 months in August 2025 ?Current inventory s at ts highest since May 2020, during the COVID-19 lockdown,?Lawrence Yun, NAR?s chief econom st wrote n an August 2025 report 7 To a housing supply across a segments rose 117% year over year, accord ng to NARdata re eased in September 2025 8

Many homeowners were feel ng ?ocked in?because of ow mortgage rates they negotiated dur ng the pandem c, Yun says ?Lower ra es? wh ch the Federa Reserve cut by a quarter po nt each month in September and October 2025? could help home se ers come off the fence, adding even more nventory That?s important to aff uent homebuyers, even those who don? t need a mortgage Wh le many pay cash, they behave as f the interest rate real y s mportant in a home purchase In Aspen, Colorado, for examp e, homes are very expens ve, but when you look at how sa es sp ke or dec ine, ?

TO REMEMBER THAT LUXURY REAL ESTATE OFTEN MOVESINDEPENDENTLY OF BROADER MARKET TRENDS.

they fol ow mor gage rate changes, even though more than half of the purchases are al -cash?

The ncrease in nventory of homes priced at US$1mi ion or more means ?we are seeing more transact ons n the upper end proportionately, compared to the rest of the market,?Yun adds ?That clearly imp ies that nven ory avai ab lity s important in getting the market mov ng?

Regional variationson both sidesof themarket

?Th s trend s part cular y pronounced n certain luxury property markets,?Fahmi says Houston, Texas,for examp e, s seeing notable nven ory increases Supp y was up 27% year-over-year in he city n Ju y 2025, but in pr me ne ghborhoods, availab ity s st ll limited, and homes sel qu ck y, says Tay or Jackson, g obal rea es ate advisor, Martha Turner Sotheby?s Internationa Realty ?If I have a isting n a sought after neighborhood and ?ve priced it r ght, I?m see ng mult ple o fers, often above the asking pr ce, with homebuyers wa ving cont ngenc es? Res den ia supp y s tightest in the Northeast and Upper Midwes , w th he hottest home sel ers?markets found n ma or metropol tan ocations, inc uding Milwaukee, W sconsin; Chicago, Ill no s; Ph adelphia Pennsylvania; Minneapo s, Minnesota; and New York, New York according o an August 2025 report by MarketWatch 9

In contrast,homebuyers have the upper hand n proper y markets in the South and West accord ng to the same report Las Vegas, Nevada, was a standout, w th housing nven ory seeing a 44 8% annual ncrease in June 2025 and home prices p ateauing

Hitting theright spot in Houston

As Jackson says, inventory has risen in Houston, Texas Matching a28% bump n supp y across the c ty,10 n the high-end Memor al Vi ages? ncludingHunters Creek, P ney Po nt and Hedwig? inventory rose 29% year-over-year in the third quarter of 2025,accord ng o October 2025 data from MarthaTurner Sotheby?s nternationa Realty 11?The vi ages are very sought after because there are good schoo s and you typical y have arger ots,? she says ?I?ve seen lot value go as h gh as US$20,000 asquare foot ?

Another ne ghborhood attrac ing homebuyer interest is Br argrovePark, a sma area to the west of Houston, where Jackson has seen ?ncred b e apprec at on?There, inventory rose 10% year-over-year in the th rdquarter, the da a showed 12

Residences in these ho spots? even hose that need extensive renovation or a total tear-down? can garner mu t p e o fers ? isted a home for US$2 m lion, knowing t wasa strategic price g ven he property?s condition The market responded strongly We had 11offers, and it sold for US$700,000 over the ask ng price,?Jackson says Some of her o der cl ents, nclud ng couples who aredowns z ng are hav ng ssues f nd ng the r ght property ?They can? t bel eve how much prices have gone up It?s a most like they are having to look or a un corn?

For home se ers, ?s a about setting the pr ce right and letting the market?d ctate the value ?The good houses hat are s tt ng on he market for onger periods are priced too high, and the home sel ers and homebuyerscan? t come o an agreement,?Jackson says. ?

THERE HAS BEEN A HUGE SURGE IN NEW DEVELOPMENTS AND OFF-PLAN PURCHASES.

UGO BAGRATION

regiona d rec or for East Anda us a, Spain Sotheby?sInternational Realty

Meanwhile, markets n the Northeast are seeing a r se n luxury rea estate sa es ?TTRSo heby?s Internationa Realty n Wash ng on, DC , has achieved a significant ncrease in uxury home sa es,?Fahm says ?The number of US$10 m ll on-plus sa es increased by 50% between 2023 and 2024 and has increased aga n by 43% so far in 2025? That is an espec ally high gure or the Wash ngton, DC , market, where the start ng pr ce for a uxury home is less than in other ma or metropo itan areas? around US$6 mil on, accord ng to David DeSantis, partner and manag ng broker, TTR Sotheby?s International Realty These

h gh-end istings? more than half of which are hand ed by his of ce? are not sitt ng on the market for ong, he says ?We have 26 act ve list ngs, and we?re on pace o do 30 sales in 2025 That?s a pretty balanced and healthy market ?he says, not ng that by August 2025 they had so d 17 luxury homes ?Inc uded in hose are some big sales? over US$20 mil ion?

Theglobal picture

International y, inventory patterns vary drama ically by reg on, says Fahmi ?Across the Caribbean, availab ity has remained rela ively constrained compared to pre-COVID evels, with demand for second homes and oceanfront res dences continu ng to outpace supp y?

Th s s echoed n the 2026 Sotheby?s

In erna iona Realty agent survey, n wh ch 50% of respondents rom the reg on repor ed that inventory had sl ghtly or sign f cant y decreased over the past year (see page 22)

That s certain y the case in the Cayman slands, where waterfront propert es are scarce, pushing up prices and fueling strong competit on between homebuyers, accord ng to data released in May 2025 by Cayman Islands Sotheby?s In erna iona Realty 13

The Turks and Caicos Islands are a so see ng ?an nev tab e reca brat on per od? after an extended surge n bus ness, according to a Ju y 2025 repor from Turks & Ca cos Sotheby?s Internationa

Inventory in Washington, D C (2023-25)

Source: TTRSotheby?s n erna ona Rea ty Healthy salesin Washington,D.C.

Rea ty 14 nventory across the market increased 20% year over year n the second quarter of 2025,w th the average time on the market r s ng from 189 to 238 days, ?creating a more measured homebuyer outlook,?the report said ?In contrast, some rad tiona ly tight European real estate markets, such as Spa n, are now showing ncreased inventory avai ab lity whi e Portugal demonstrates strong market growth w th sign f cant increases in transact ons and new uxury developments,?

Fahmi says ?Meanwhi e, n Asia, Tha land s see ng luxury branded residences eading the next wave of development ?

Inventory in the Turks and Caicos Is ands (year-over-year Ju y 2025)

Source: Turks & Ca cos So heby?s n erna ona Rea ty across the is ands

Opportunitiesin the south of Spain

Investors appreciate the value propos tion in Spa n, where they can genera y expect about 5% to 10% year-over-year appreciation, says Bagra ion But once again, supply var es dramat ca ly depending on location and the qual ty of the property

?There has been a huge surge n new developments and o f-p an purchases, especia ly in the south and the east There are a vast number of new projects in the pipe ne that are attracting internat onal homebuyers and al ev at ng the scarc ty we have when it comes to luxury inventory?

This new supp y s attracting younger buyers, with Mil ennia (born 1981-96) and Generat on X (born 1965-80) homebuyers rep ac ng Baby Boomers (born 1946-64) ?A big chunk o these new homebuyers pre ers more con emporary and modern developments,?he adds ?This does no mean that demand for traditional Span sh Miss on-sty e homes is not strong: they are st l a top choice for many of our very aff uent fam lies?

Meanwh le, Sou h Amer can homebuyers have f ooded c ies ke Madr d, he says Investors from the U S , Canada, South America and the M dd e Eas are also discovering Spa n, with many choosing to become permanent residents

Pushing pricesup in Portugal

Portuga a so offers a festy esought by many nternat ona homebuyers, espec al y peop e from the U K , the U S and Germany,according to Portugal Sotheby?s Internationa Realty

In 2024,tota homesales rose 14 5% compared to the previous year,according o data publ shed n March 2025 by he Inst tuto Naciona deEstatíst ca (INE) Portuga ?s government office for statist cs 15 The total value of transactions reached EU?33.8 bi ion (US$39.2 bi ion) n 2024, a nearly 21% annualincrease That trend continued nto 2025 In the first half of the year, total property sa es sp ked 34% annually for Portugal Sotheby?s nternationa Realty, andhome pr ces were up 16 3% year over year n the first quarter, according to the NE?sdata report

Strong demand and limited supp y are putt ng upward pressure on pr ces,says M guel Poisson, ch ef executiveofficer, Portuga Sotheby?s nternationa Realty

The cap ta , Lisbon, where much of he country?s ultra-prime real estate is concentrated,cont nues to attrac homebuyers, whilePorto and the A garve are also popu ar ?We are seeing prem um resident al development in new zones that appeal to homebuyers seek ngexclus v ty,? Po sson says. ?

A Hollywood boost in Thailand

The market n Tha and s becom ng more competit ve,says Phakrj ra Jansakran, director o sales,List So heby?s Internat onal Realty Tha land ?Our homebuyers now have more options and leverage,espec al y in and around Bangkok and Phuket ?

One area that s see ng increasing demand is Koh Samui, which has benef ted from a Ho ywood boost: since the th rd season of HBO?s hit televis on drama ?The Wh e Lotus?was fi med at he Four Seasons Resort on he s and, nternationa homebuyers have been flock ng there

?Phuket and Koh Samu have so dified their reputat ons as Asia?s lead ng des inations for festy efocused property nvestment,? Jansakran says ?Demand from internat onal homebuyers rema ns strong, and we?re now see ng a clear increase n luxury nventory? part cularly in the US$10 mi ion-p us segment ?

However, despite their popu arity, upscale residences can take eight to 12 mon hs to se , according to data compiled by L st Sotheby?s nternationa Realty, Thailand ?Ultra-h gh-end un ts may take longer to find the r ght homebuyer bu typical y ach eve prem um prices when so d,?adds Jansakran

Buying into thebrands

Branded residences are one of the biggest drivers of nventory around the wor d They appeal to nternationa homebuyers because of g obal brand recognition, guaranteed pr vacy and the f exibil y of ownersh p opt ons In Thailand?s capital, Bangkok, ?the best va ue es in we lmanaged branded residences which have better rental yie d and capital preservat on,?Jansakran says Discussions about several projects on Koh Samui have a ready begun, she adds Branded res dences also represent the biggest growth segment on the Costa de So of Spa n, says Bagra ion Hote cha ns

such as Four Seasons, Hi on and Marr o t, and top- ier brands inc uding Do ce & Gabbana and Lamborgh ni have recent y broken ground n the reg on he says Although these types of pro ects have a ready found success elsewhere, they are new to Spa n? and are pay ng of ?Major uxury brands are co labora ing w th we l-established developers n jo nt ventures to build them in record t me,?he adds ?We?re see ng the highest prices per square meter on the Costa del So in the branded res dence segment? US$20,000 to US$25,000?

Homebuyers who buy off-p an can expect healthy returns as soon as the project s comp eted ?If they dec de to se l

mmediately, the return can be anywhere between 20% and 25%,?Bagrat on says ?We?re seeing a major inf ux o nvestors purchasing severa units w thin the same deve opment ?

Portuga s a so see ng branded res dences ga n traction The beach town of Comporta, ust sou h of L sbon, has been attract ng new nterest, as have coastal destinat ons west of the cap ta , ke Casca s, Estoril and Oe ras

n the U S , Miami, Flor da s the center of the branded residence wor d, a hough there are a so deve opments n New York C ty and other uxury marke s, such as Washington, DC In March 2025, Four Seasons Pr vate Residences announced p ans to bui d 64 new ultra-luxury homes n Georgetown,16 wh e a l 96 un ts in the Rafael V ño y-des gned Amar s, located n The Wharf ne ghborhood, were so d out as of Ju y 2025, according to the bui d ng?s owner

Not atruehomebuyers? market? yet

W thout quest on the luxuryreal estate market has changed dramat ca ly over the past ve years.Opportunit es ex st for homebuyersand home sellers, ?though it requiresmore strategic think ng than we?veseen in years past,?Fahmi says ?W th inventory eve s up from ast year, homebuyershave more choice in certain marketsand price points, giv ng them leverage to be more d scerning?

W E ARE SEEING PREMIUM RESIDENTIAL DEVELOPMENT IN NEW ZONES THAT APPEAL TO HOMEBUYERS SEEKING EXCLUSIVITY.

In the U S ,lower nteres rates are also a catalyst for the market, DeSant s says ?We arealready see ng increased homebuyer ac ivity as a result of nterest rates dropp ng,?he says ?Isuspect even morehomebuyers w l come out of the woodwork, presum ng the economy stays re at ve ystab e?However, Jackson notes that mortgagerates probably won? t reach the his or clows seen during the pandemic, so th s sunlikely to affect pr ces r ght away.?When the interest rate drops, homebuyerswho were stay ng pu due to the r low mortgagerate might enter he market,?she says ?There would be more compet tion,and you m ght end up pay ng more n mult ple-offer s tuations?

The shift ngmarket means ?smore important than ever or homesellers to f nd the r ght pr ce when consider ng asale And for today?s luxury homebuyers, any increasein inventory represents aselec ive opportun ty rather than abroad advantage Success requires dentify ng marketswhere supply and demand crea e leverage,whi erecogn zing that prem er locat ons con inue o reward dec s ve, cash-ready purchases

MIGUEL

?So heby?s Internat onal Rea y aff liatedagents believe that while t isn? t atrue homebuyers?market ust yet, home sellersneed to be rea istic about pr cing? the luxuryreal estate market rewards properties that are well-pos tioned and proper y marketed,?Fahmi says -

Game ON

How major sporting eventsshapeluxury property marketsaround theworld.

In summer 2026,the G obal Soccer Tournament wi return to Nor h American so for the first t me in over 30 years

Co-hosted by Canada, Mex co and the U S , he matches wi be held across 16 c ties, rom Toron o and Mex co C ty to Phi adelphia, Pennsylvania, and Los Ange es, Ca ifornia Not long after Los Ange es wil aga n be n the spotlight as host of the 2028 Summer Games

The publ c enthusiasm for such events is staggering The 2024 Paris Summer Games sold 9 5 mil on t ckets to people from more than 222 coun r es? a record for the event? accord ng to an October 2024 report by he city authority 1 And the 2022 G obal Soccer Tournament in Qa ar attrac ed more than 3 4 m lion visitors, according to the post-tournament report by the sport?s governing body 2 If h story is any guide, these g obal y popular events

not only promise a spectac e of sport; they are also a potent al cata yst or urban and rea estate deve opment in the ong term

The term ?Olympic effect?was f rst coined n 2009 by Andrew K Rose and Mark M Sp ege in a paper pub ished by the Nat onal Bureau of Economic Research It refers to the economic boost and correspond ng property market sh ts hat can accompany nternat ona sporting tournaments 3

But the re at onship between ma or sports events and luxury real estate is complex and nuanced New York University econom st Cons ant ne Kontokosta?s April 2012 paper ?The Price o Victory? dentified both opportun ies and risks? from short-term demand surges and increased g oba vis b lity o potent al housing supp y strains and post-event market corrections 4

A though g obal sport ng events can be seen as a one-size-fits-al too for econom c development, Kon okosta conc uded that each c ty ?must appra se its own goals, ob ect ves and capab it es before pursu ng such a costly and resource-consuming endeavor?

Accord ng to a July 2012 report by investment bank and f nancia serv ces company Go dman Sachs, the Games ?may he p ra se the host c y?s prof le globa y and provide a boost to its tour sm ndustr es and local economy Such benefits may be capitalized n loca house pr ces as wel ?The report?s authors est mated an average annua apprec at on ra e ncrease of 1% for ocal property va ues fo owing a c ty hosting the Games ?Assum ng the effect lasts for 10 quarters after the Games, the cumulat ve effect is 2 5% ?5

From Tokyo, Japan, to Par s, France, and from Doha, Qatar, to Dal as, Texas, recent and upcom ng hos cit es offer a revealing look at how the world?s b gges games reshape property markets

A short-term high?

followed by a correction

Ma or sport ng events often act as

a ca a yst for a local zed econom c boom n the years lead ng up to the opening ceremony According o a study publ shed by Matthias F rgo o the Austrian Institute of Econom c Research in January 2020, host cities typically see a measurab e ncrease in GDP preced ng the Games 6

C t es nvest bi ions in new infrastruc ure

? s adiums, a rports, pub c transportation and hote s? wh le deve opers race to meet

The post-Games bump n property values

Source: The Te egraph,Ju y 2013 Hous ngJapan,July 2021; and I Sole 24 O e Ju y 2024

10 % r se n London, Un ted K ngdom a er 2012 Games

ant cipated demand from our sts, shor -term renters and a boosted local workforce

This was evident in London and Par s ahead of the 2012 and 2024 Summer Games, respect ve y London?s proper y resa e and rental rates saw a sp ke ahead of the Games, as reported in March 2012 by the Guardian, with some rental pr ces near Games venues quadrup ing 7 The Telegraph reported in July 2013 that London had seen a 10% year-over-year r se n uxury property values 8

In a July 2024 report, Italian f nancia newspaper I So e 24 Ore est mated hat prices in the three Paris munic palities around the Ath etes?V llage? Sa nt-Denis

L?Île-Sa nt-Denis and Sa nt-Ouen-surSeine? rose by an average of 22% year-over-year n the lead up to the 2024 Games 9

?Theeffect showed up early n Par s Our website saw asurge of morethan 70% in foreign traffic most y from the U S ,focused large y onhomes with spectacular v ews,?saysPau o Fernandes, chiefexecutive officer,ParisOuest Sotheby?sInternat ona Realty ?The Gamesserved as apowerfu catalyst help ngpeoplerediscover Par s and, morebroadly, France The mpact of such anevent s both direct andindirec and lasts for several years? d rect y forthose lucky enough to attend the Gamesand vis t Parisin person and ndirectly for those who followed from afar andarenow inspired to experiencethe c ty forthemselves? However, the post-event phase can bringa d p n both demand and pr ces and ashort-term renta boom can lead to an oversupp y oncethe crowds leave especia y if speculative nvestors ?

m sjudge long-term demand ?For those ooking a short-term rentals, ma or sporting events prov de h gh y elds,?says Jess ca Lautz, deputy chief econom st and v ce pres den of research at the Nat onal Assoc at on of REALTORS® ?However, wh le owners can demand a prem um during the events, normal pric ng would likely resume after the event ? Braz , wh ch hos ed the 2014 G obal Soccer Tournament and he 2016 Summer Games,saw rapid growth fo lowed closely by a number of econom c chal enges From 2010 to 2013, resident al property va ua ions in Rio de Janeiro increased by 84% accord ng to a March 2014 paper about the influence of the soccer tournament by researchers at Fluminense Federa University, in N teroi, Brazi publ shed n the journa Internationa Proceedings of Economics Development and Research 10 Rental prices surged 35% dur ng the event, and hotel pr ces soared 600% accord ng to a December 2022 report by Mans on Global 11 However, growth had sta led by m d-2016, when n ated prices caused a market s owdown, and remained stagnant unti 2019,after which the COVID-19 pandem c led to a drop in prices and the market began to recover Meanwh e,the US$700 m lion Ath etes?V l age n R o de Jane ro? slated to become luxury condos after the 2016 Games? was reported to be 93% vacant by Business Ins der n Ju y 2017 12 Qatar a so offers a cau ionary tale The 2022 G obal Soccer Tournament spurred massive n rastructure investmen , estimated at US$220 b l on according to Forbes in November 2022 13 But it also resu ted n a housing crunch, w th h gh eviction rates and overcrowding among fore gn workers, as reported in

October 2022 by Reuters 14 The coun ry now has an est mated surplus of 80,000 units, according to a June 2025 report by the G obal Property Guide 15 Wh e Qatar?s high-end market remains s rong, part y due to the eas ng of government restr ct ons on fore gn buyers, its experience underscores the essons to be learned from bu d ng too much

A long-term legacy of improvement

No a l mpacts of hosting a ma or sporting event are f eet ng The key to long-term success ies in thoughtful urban plann ng Barcelona, Spain, exper enced m xed results fo owing s hosting of he 1992 Summer Games The Internat ona Academ c Workshop on Socia Sciences pub ished a study in Oc ober 2013 that found that Barce ona experienced a roughly 300% increase n proper y va ues start ng six months before the Games? and an increase of around 325% for hous ng surrounding the Ath etes? V lage? w th the bubble qu ck y burst ng once he Games were over 16 By 1993, real es ate pr ces had a ready dropped back to pre-Games evels, and developmen s bu lt for middle- and upper-class buyers struggled to retain occupancy Property markets across Spain boomed over he next decade, however, with the Bank of Spa n repor ing in December 2006 that housing prices had increased by more than 100% n real terms since 199717 Meanwh e, the London Borough of Newham, where the c ty?s stad um and Ath etes?V l age were comp eted in 2012 experienced the highest rise n property prices across the U K from 1999 to 2019, as reported by the Guard an in December

The 2024 Summer Games served as a power u cata yst fo internationa vis ors to rediscover Pa s an ne ghborhoods such as Sa n -Germaindes-Prés whe e his 18 h-century townhouse s ocated

2019? 429%, more than double the average r se across the U K (207%) 18 Paris, France, had a housing-centered approach that has so far proven benefic al for both short- and long-term growth ?The Games?momentum sparked renovat ons across the c ty: period apartments and his or c bui d ngs were revitalized for high-end rentals, breath ng new ife nto forgotten heritage,?Fernandes notes Hote rates surged during the Games, part cularly for properties with v ews of the E f e Tower or the R ver Seine Despite increases in demand, short-term renta s rema ned stable, and the market never overheated Visible upgrades, from re uvena ed city squares to restored façades, ensured Paris was rad ant before, during and after the Games ?There was no post-Games downturn,? Fernandes says ?Some owners were able to rent out he r proper ies at prem um rates during he event, but the market qu ck y returned to normal a terwards None of our cl ents were disappo nted? they had calcu ated the r return on investment based on regu ar renta rates and he Games-period ncome was s mply a bonus?

The ong-term e fect of major sport ng events can sometimes be de ayed According to the Mansion Globa December 2022 report,internat onal interest n rea estate in Sou h Africa wasn? t immediate y ev dent fol ow ng he 2010 Gobal Soccer Tournament Yet from 2011onward,a slow increase in fore gn buy ng emerged Da a compi ed by the Institute of Estate Agents Western Cape and reported in he industry pub icat on Proper y Professiona n February 2015 showed foreign buyer transact ons tr pled between m d-2011and mid-2014,from 14 to 43 sales,attribut ng the rise to a growing

THE IMPACT OF SUCH AN EVENT ISBOTH DIRECT AND INDIRECT AND LASTSFOR SEVERAL YEARS.

internat onal interest stemm ng from the wor dw de exposure the country rece ved because of he tournament 19 Tokyo, Japan, experienced unique cha lenges dur ng its recent Summer Games, which were pushed forward from 2020 to 2021due to the COVID-19 pandemic While the Games boosted globa v s b lity for the city their rea estate impact was dampened by strict pandem c protocols that kept internat onal visitors away, according o a Ju y 2023 editoria by market ana yst M chae Matusik in Australian Property Investor magaz ne 20

reported hat proper y pr ces n cen ra Tokyo?s Chiyoda andM nato wards rose morethan 10% rom Apri to September 2020, wh epre-owned sing e-family homepurchase contracts umped 21% year-over-year 21

Soccer drivesgrowth in North America

PAULO FERNANDES

ch ef executiveofficer Par sOues Sotheby?sInternational Realty

However, there was st l an uptick n real estate prices in some of the most des rab e areas In July 2021, just days before the Games began, Housing Japan

n a February 2018 study The Boston Consulting Group est mated Nor h America w l see more than US$5 b l on n short-term econom c activity from host ng he 2026 Globa Soccer Tournament,according to the Soccer Forward Foundation 22 ?

MetL e Stadium n East Ru herford, New Jersey, is set to host the ournament f nal, and the New York metropo tan area s already see ng he ghtened economic act v y? a hough not necessari y n the rea esta e sector

Accord ng to a March 2024 report by Bluepr nt, a student- ed pub ication from New York Un vers y?s Schack nst tute of Real Estate, the who e event s pro ected to genera e over US$2 b ll on in regiona economic activ ty 23 nfrastructure improvements wil benefit the tr -state area in both the long and short term, ncluding US$30 m lion n plann ng and design upgrades to the stadium and surround ng areas, along w th US$35 m l on in NJ Trans upgrades, the report says Real estate profess onals don? t expect a downturn after the tournament ?Because we are n a densely popu ated me ropo tan area of more than 10 m lion peop e, the downturn never really happens,?says Char ie Opp er, president and ch ef executive off cer, Prom nent

Propert es Sotheby?s International Realty, wh ch serves the New Jersey and New York metropolitan property marke s

?We?re hear ng s or es of short-term renta market activity related to the tournament

In host c t es, property owners are starting to is renta s for the tournament week, part cular y around the fina It?s too ear y to see any measurable mpact on luxury rea estate transact ons,but as we move c oser, I expect th s short-term rental activ ty to bu ld? espec al y for propert es with n reasonable distance of the stadiums?

Shor - erm rental res r ct ons n many ne ghborhoods may also m t future act v y, accord ng to Opp er ?Many communit es have proh b t ons and ord nances restricting short-term or A rbnb-type renta s,?he says ?That w ll certain y mpac the ava abi ty of residences to be rented by people that are coming n from outside he metropol tan area Vacancy ra es on renta s and demand for proper y are tru y ?supply and demand? right now because of the lack of nventory

2026 G obal Soccer Tournament econom c impact in New York, New Jersey and Texas

Source: B ueprint (New York Un vers ty Schack Ins tu e o Rea Estate) ?The 2026 F FA Wo d Cup Final?s Inf uence on Rea Es ate n NJ and NY?March 26 2024

New ren a buildings are everywhere Demand has not wavered, because the New York metropol an area is a g obal commun ty like no other?

The G oba Soccer Tournament is also expected to generate around US$2 b l on for the North Texas region, where Ar ngton?s AT&T Stad um is set to hos nine matches, according to a June 2025 report by CBS News, though it is too soon to e how t w l affec oca real estate 24 ?The luxury markets in Dallas and For Wor h] are growing faster han the overa market,?says Russ Anderson, president and ch ef executive officer, Br ggs Freeman Sotheby?s nternationa Realty n North Texas, w th uxury property va ues apprec at ng at rates of 5% to 10% compared with typica growth between zero and 5% for homes under US$1mi ion ?We are seeing a faster rate of apprec ation, and we th nk tha ?s because of the vitality of he market ?

But the soccer tournament does present a un que opportunity to showcase Dal as and Fort Worth o a wider global audience ?The b g value n soccer is that it has internat onal popularity,?Anderson says ?The exposure wi hopefully attract the wealthy from all over the wor d, which could have a asting mpact we wi see for over a decade?

A look ahead to

upcoming Games

The 2026 Winter Games w l take place in two Ita ian locat ons M lan wi host the indoor events,such as ce hockey and f gure skating,whi e the sk ing, snowboard ng,and bobsle gh compet ions wil be he d in the Do om tes resort of Cortina d?Ampezzo

Mi an, which is a ready known for high property pr ces, especial y n the luxury segment, s expec ed to see some market boost from the Games though experts don? t predict dramatic changes. ?

P h o t o : L e w G e f f e n S o t h e b y ? s n t e r n a t o n a R e a y

?Market shifts are usually dr ven by factors ke tax pol cies and ifesty e appeal We?ve certainly seen a boost in tourism for both Cort na and M lan,? says Diletta Giorgolo, head of res dent al, Ita y Sotheby?s Internat ona Rea ty ?Cort na, be ng a niche market, w l attract significant nternat ona nterest, but we don? t an ic pate big price increases. We have a strong marke a ready, with more nternationa buyers com ng to Italy due to favorable tax pol cies for foreign investors The Games w l ike y boost tour sm more than rea estate?

A new crop of uxury ho e s w th a more authentic feel than b g fore gn chains is expected to further enhance tour sm, accord ng to an art cle in Vogue magaz ne n Ju y 2025 25 Add t ona ly, a new slope connection between Cort na?s ski resorts wi a low vis tors to explore the Do om es with one pass ?We?ve seen an increase n shor - erm rentals and expect to see more after the Games,?Giorgolo adds ?There are more requests for Cort na short-term rentals and while it?s already famous among Ita ans and Europeans, we?re now see ng an inf ux of American touris s and ren ers We? l see, af er the Games, if these renters turn into buyers?

Look ng further nto the future, Brisbane, Australia, which is set to host the 2032 Summer Games, is a ready experienc ng grow ng interest

?There has been a mater al rise in property values across Brisbane since the announcement,?says Paul Arthur, chief execut ve of cer, Queensland Sotheby?s

In erna iona Realty ?Br sbane was progress ng and maturing into a vibrant city, but the Games announcement took conf dence and energy evels to new h ghs We?ve seen a significant ncrease in property values in he past 12 months, and with interest rates decreas ng, this has the potent al o add further fue to property prices The Br sbane market continues to be ?white hot,?w h no end in sight ?

The AU$3 6 bi ion(US$2 4 bil on) Queen?s Wharf Br sbane deve opment, which ncludes public spaces,hotels, entertainment venues and around 1,800 res den ia apartments, has been open ng in stages since 2019 and sdue for complet on in 2029-30, accord ng to a December 2024 projec update by the Queensland Government.26 Major sport ng venues, ike asoon-to-be-bui 60,000seat s adium in V ctor aPark,are a so n the works, ESPNreported n March 2025 27 However, it is important to note that wh e the Games may accelerategrow h, they aren? t the only factor in p ay ?Ibe eve it?s fair to say that the recent ncrease n property values in Brisbaneand Southeast Queensland snot fueled so ely by the Games but rather by the demand for a certainl estyle that the area offers? re axed, v brant outdoors-oriented andwe ness-focused,? Arthur says ?Given he migrat on we?re exper encing from the southern cap ta s of Sydney and Melbourne, we don? t oresee any post-Games hangover or downturn In fact, Br sbanewi sh ne on the wor d stage and put an even greater spot ght on Southeast Queensland,from the Gold Coast to the Sunshine Coast ?

Luxury real estatewins

For uxurybuyers and nvestors, the esson sc ear: T m ng,loca ion and long- erm vis on matter Luxury properties c ose to sport ng venues and well connected by transit and integra ed nto future urban p ann ng,tend to ho d the most va ue after the clos ng ceremonies Speculat ve purchases driven so ely by shor - erm renta gains can backf re, especia y if demand wanes a ter the event Cit es that al gn the r hous ng,transportat on and deve opmen strateg eswith goa s of short-term v s b lity and long-term vab lity wil emerge as the champ ons n the globa real estate market -

Multigenerational LIVING

Many luxury homebuyersarelooking for propertiesthat bringthe wholefamily together

Several genera ions sharing a family home is emerg ng as a sign cant trend in uxury rea esta e Wh le fam lies once often shared a home primar y to reduce cos s and provide a secure launchpad for their chi dren, oday many of them are more focused on emot ona connect ons, shared caregiving across genera ions and crea ing a fami y egacy

In 2024, an estimated 17% of U S homebuyers purchased a res dence w th the intent to house mult p e generations according to an Apr 2025 repor by the Nat ona Association of REALTORS® (NAR) 1 The report def nes a multgenerat ona household as one that inc udes more than one adu generation, such as a coup e v ng with the r adult chi dren or the r own parents

?More and more fam lies see a home as one of the best ways to pass down both wealth and va ues,?says Rodd Mack n, co-founder and senior managing d rector

Pennington Partners & Co , LLC ?With roughly US$84 tril on expected to change hands down he genera ions in he U S over the next 20 years, people want that transfer to eel rea and asting A house can do that Un ike stocks or a business, a home has stor es at ached to it It can become a place where weddings, ho days and tradit ons keep the egacy alive?

Each generat on thinks about mu tigenerationa homes n different ways, Mack in says Baby Boomers (those born 1946-64) o ten downs ze the r day-to-day living arrangements bu keep a home where everyone can gather whi e Genera ion X (born 1965-80) are increas ngly providing for elder y parents and their adu t children under one roo

Meanwh e, Mil enn als (born 1981-96) and Gen Z (born 1997-2012) prefer flexible living spaces rather than large houses ?What?s the same across a generat ons is that their homes g ve a sense of belong ng

It?s not just rea esta e,?Macklin says ? ?s where the family hear beat is?

Renewed interest in a traditional lifestyle

At the turn of the 20th century, 57% of Amer cans over the age of 65 ved with the r ch ldren, grandchildren or o her fam ly members, according o a Ju y 2021Generations United®report 2 Soc al Security, introduced in 1935, enabled more older adults to l ve independent y, with the number of mult generationa homes s ow y decreas ng to approximate y 7% n 2011

The COVID-19 pandemic, which began n 2020, was largely respons ble for rekindling interest n mult generat ona living, and by 2021one in our adult Amer cans (aged 18 and o der) were iv ng in such a househo d? a 271% rise over just a decade, the report found

The r se in adu t children l ving w th the r parents is a primary driver for mult generat ona v ng, accord ng to another repor released by NARin May 2025 3 In 2024, 21% of respondents in the study sa d that adu ch ldren mov ng back home was a reason they had bough a multigenerat onal res dence? near y doub e the 2015 f gure (12%) Equal y influent al was the desire to spend t me w th or care for ag ng paren s Generat on X is now dr ving the demand for shared housing, accounting for 21% of homebuyers, up from 12% in 2014, according to NAR?s research The representation of M llenn als among mu tigenerationa homebuyers a so grew, from 6% to 19% At the same t me the proport on of Baby Boomer homebuyers stayed steady at 28%

?We are see ng this trend quite often now, from mu tip e age groups and for bo h new construct on and renova ions,?says

The demographics of mu t generationa homebuyers Source: Na ona Assoc ationof REALTORS®,?2025 HomeBuyers and Se ers Generat ona Trends Report,?Apri 2025

21% Generation X

28% Baby Boomers

Bob Zuber, a partner at Morgante Wi son Architects n Chicago, Il nois ?Younger couples who have maybe broken through into the luxury housing market are f nding that t may be more economical or the r parents to live w th them ins ead of pay ng the high costs of independent living?

John Young, g oba real estate advisor, Golden Ga e Sotheby?s International Realty, characterizes the homebuyers he encounters n his markets of Pa o A to and Sil con Va ey in Californ a as an act ve, hardworking group ?They perhaps have sma ch dren, and they?re n a posit on to give a better life o their parents, who got them where they are,?he says

In some cases, the younger generat ons ook to the r parents for ongoing advice ?What I?ve exper enced with adult chi dren and the r parents is that they want the r parents?input on whether or not a space would work for hem,?says Tammy T nnere lo, globa real estate

21% S ent Generat on

advisor W ll am P t Sotheby?s nternationa Realtyin Connecticut ?They wan the r parents to be par of the r lives? n add tion, she says that there s anincreased sense o car ng for one another in fam lies consider ngan nvestment n a mu tigenerational home ?The attitudetends to be: You ra sed us, and we?vegot these great careersbecause you helped us through co lege and everyth ng e se Idon? t know if it?sre ated o the pandem c period, when peop e started spending more time w th the r am ies, but is on a different leve ? Amongh gh-net-worth nd vidua s (HNWIs) he decis on to purchase amu igenerational property isas much about fami y ties as it s about preserving alegacy even though over t me it?s ikely he property?sva ue wi appreciate, says John LeMieux,co-founder of Anton LeMieux,a wea th management firm based n Ma ne and Flor da ?

?Around the wor d, wea thy fam lies have used property to preserve wea th for generat ons,?adds Mackl n ?In the U S , we?re seeing more of it now, often w th limited l abil y companies, rusts or partnersh ps that make t eas er o share costs and p an for taxes wh le etting the property grow n va ue But it?s also about hav ng somewhere that ties everyone toge her A sk place in Vail, Co orado, a beach house in Flor da or a home n the Hamptons, New York, often f lls tha role? Legacy often dom na es conversations about buy ng a mu tigenerationa home, part cularly at h gher price points? and the most cohesive famil es al gn an emot onal legacy of shared values and a sense of belonging w th preserv ng and transferr ng wealth, Mackl n says ?A home is often the anchor where am ies come together, making t a natura place for conversa ions

about prosper ty,?he says ?At the same t me, it?s a ma or asset that must be structured thoughtful y f it?s going to as across generat ons?

Wea thy famil es use ega and f nancia too s to ensure they preserve he va ue of a multigenerat onal home, but they don? t stop there, Macklin says ?They a so set clear expectat ons for use and make sure the property remains the gathering place that keeps the fam y?s story and ts values al ve These famil es treat the property almost ke an enterpr se They?l set up informal boards or councils and ho d regu ar meetings, often at the home itse , to ta k about stewardsh p, costs and long-term goa s These gatherings doub e as fami y reunions and s ructured conversat ons, wh ch s why the home cont nues to be both an appreciating asset and a unifying trad t on??? Mult genera iona home purchases in 2023-24

Source: Na ona Assoc ation o REALTORS®, ?2025 Home Buyers and Se ers Generationa Trends Report,?Apri 2025

A global perspective

Ou s de the U S , mu t generationa l ving is making a sim lar comeback, espec al y in countr es that have a cultura her tage of honoring and valuing the o der members of the r famil es

?In Japan, he dea of a family living together has profound roots,? says Kantaro Aok , g obal rea estate adv sor, L st So heby?s Internationa Realty, Japan ?Histor ca y, t was common for the grandparents, parents and ch dren to ive together n the same househo d, especia y n rural areas Although the nuclear family became more common in the postwar years, the trend toward mu igenerational homes s re-emerging?

Two key factors are contr buting to the increased demand for multigenerat onal homes, he says: the funct onal benef ts of keep ng extended fam y members nearby for ch dcare, eldercare or shared dai y responsib it es and he ong-term strategy of mainta ning fami y-owned properties across generat ons.

Multigenerat onal homes are common in Braz l, bu the reasons for the r popular ty among high-net-worth househo ds are changing ?Trad t onal fam ly va ues cont nue to shape how homebuyers envis on their homes, but n a more nuanced and evo ved way?says Renata Victorino, general sa es director, Bossa Nova Sotheby?s Internationa Realty n São Paulo, Brazi ?Histor ca y, Braz ians l ved n mu igenerational homes out of necessity Today, the concept has trans ormed The des re for c oseness and fami y connection remains but it is now pa red w th a s rong emphasis on nd v dua autonomy and qual y of life?

In Greece, the mot vations among the wealthiest domest c homebuyers ?are deeply personal rather than f nanc al? they buy homes to l ve in, enjoy, and share with family, no for internat onal cap tal p acement or specu at ve ga n,? according to a 2025 report by Greece Sotheby?s International Realty 4

W hat homebuyerswant

The des re to create a p ace or the fam ly to come together is a prime dr ver for the mu tigenerationa trend in h gher price brackets Location, purpose architecture, land ava labi ty and cu tural norms play into what makes a property deal for several genera ions

?Thought u planning by an arch tect of how people want to l ve s he difference between success u intergenerationa v ng and a big house,?says Zuber,who is a strong proponen o what he dubs ?away space?

?Th nk rec rooms, s t ng rooms, separate entry po n s if necessary, read ng nooks and playrooms Not everyone wants or needs to be surrounded by fami y members at a l imes D v d ng up a shared place c everly can allow older o ks to have a fee ing of ndependence rom the r adult chi dren and grandk ds? eatures such as kitchenettes or separate TV rooms and s tt ng areas mean they can have meals and evenings on the r own f hey want ?

Even before the pandemic, architects were des gning homes with dedica ed spaces for the older or younger generat ons Today, many high-end bu lders offer options such as a guest su te ncorpora ing a k tchen, v ng area, bedroom, bathroom and aundry area to accommodate mult ple generat ons n one home.

EACH FAMILY HAS ITSOWN SPECIAL NEEDS,W HICH MEANSEACH HOUSE CAN BE A BETTER OR LESSSUITABLE FIT FOR THEM.

At h gher price points, he erm ?mu t generationa l ving?encompasses a d verse range of opt ons, from s nglefamily homes w th ntegrated spaces for extended family to larger propert es with mu t p e dwel ings or homes located nearby but not on the same piece of land.

In some instances, having an accessory dwel ng unit (ADU) n the backyard can be an acceptab e comprom se

However,Young says,many cl ents, par icularly those from overseas,want to take act ve care of o der re at ves

?Some fami ies feel hat an ADU s oo far away,?Young says ?Even if only for a two-month v s t,some foreign homebuyers want to have a bedroom on the ground floor,with the rest of the fam y upsta rs?

JOHN YOUNG g oba rea esta eadvisor,Golden Gate Sotheby?sInternational Realty

A traditional so ution s an apar ment or suite on a leve be ow ground ?That works fine you?vegot mob lity,?Young says ?It?s great for a teenager who wants a b t of d stance But it?s a quest on mark for aging parents who might have concerns with stairs Each family has ts own specia needs,wh ch means each house can be a better or esssu table fit for them.? ?For younger am ies build ng or renovating homes there is a ot of interest in inc ud ng ?n-law?su tes with a bit of privacy from the main areas of the home? says Zuber In a more urban ocation, such as M am Flor da,or New York City, a strategy of purchas ng two ad acent townhouses or condos m ght better fu f ll the des re for amu t generationa property F nd ng the r ght property and meet ng ahomebuyer?s vision can requ re ?ou s de-the-box th nking,? which T nnere lo considers essentia ?

?There s no drop-down menu option for mu i-generat ona homes on the mult ple list ng serv ce You actually have to put it in the?verb age and descr be the property as suitable for mult p e generations?

In Japan, fam lies today are seeking des gns that respect both rad tiona and modern festy es, and homes tha w ll al ow grandparents and parents to ive c ose y ogether wh e st ll ma nta ning their independence, Aok says

In Tokyo?s luxury market, multgenerat ona homes are often ta lor-made They may be arge urban residences or condom niums designed w th several separate suites, complete w h pr vate entrances or ent re w ngs or different fam ly members

?Outside he capital, in places such as suburban Tokyo or Kanagawa, or resort areas such as Karu zawa and N seko, homebuyers tend to lean toward spacious detached homes or estates,?he adds

?These o ten nclude multiple primary bedrooms, se f-contained gues quar ers and generous outdoor spaces Scenic gardens or v ewpoints are significant, as the home typ ca ly serves as a gathering place for the extended fam ly?

In Braz l,younger generations va ue the r ndependence but l ke hav ng emo iona and ogis ical support from he r fam lies, says V ctor no Meanwhile, o der people who are more act ve and financ ally independent want to preserve their pr vacy wh le stay ng c ose to their chi dren and grandch ldren ?Th s has created demand

for propert es that funct on as fam ly compounds, whether in urban sett ngs w th independent but nearby units, attached guest residences or a second home that can serve as a na ura ga her ng point ?

H gh demand has fueled an increasingly soph st cated supp y of family compounds n the country that r va internat onal resort standards, she adds ?In countryside commun ties these pro ects create se f-suff cient ecosystems, where proximity to nature b ends seam essly with urban com orts Usually located w th n a two-hour drive of Braz l?s major cities, they al ow people to en oy a super or qual ty of l fe? ample space, secur ty and nature w hout los ng access to essentia s ke internat onal schoo s, top-t er hospita s and luxury shopp ng?

Building generational real-estatewealth

Mult generat onal hous ng doesn? t look the same for everyone, Mack in says ?

m ght include a ski house, beach house or mounta n odge that everyone uses at different t mes of he year It could nvo ve

mu t p e struc ures on the same p ece of land Another example s a vineyard, ranch or h storic home that doubles as a place to gather and also produces income?

Generat onal housing takes many forms w thin the uxury real estate market, says Sandra Wend and, g obal rea estate adv sor, Legacy Sotheby?s Internat onal

Realty n Port and, Ma ne ?Somet mes it?s a ake ron property, somet mes ocean ron or even sland compounds, because t goes back to the fam y seeking meaningful time together w th extended fam ly and friends Those homebuyers are often drawn to properties featur ng mu t p e dwe ings that provide amp e space for everyone to gather?

A though crea ing a fami y legacy may not be exp citly stated, it s a goa for many homebuyers par icu ar y those in the marke for vacat on homes Wendland c tes the examp e of a seasona ake property compris ng a ma n lodge, two cabins and a garage apartment ?The c ient was a fami y from the Midwest ooking for a spec al retreat where the r ch ldren, parents and even ual y grandch ldren could come together,?she says ?This property had already served as a cherished ga her ng place for bu lding long-last ng fam ly memor es, a trad t on the previous owner uphe d for 70 years

To see a property go from one extended fam ly to another with the same ntent s not uncommon, especia y n Ma ne?

One of her recent transact ons ?

a ake ron property near the base of a sk resort ? inc uded the buyer?s mother, who had grown up skiing there ?She was elated

to be able to en oy the mountain and lake w th her grandch ldren?says Wendland ?The former owner had bu lt he property 50 yearsago for h s own fami y?

A placeto unplugwith therest of thefamily

Since every fam y is d fferent, luxury multigenerat onal home purchases are made for d versereasons ?From the cu tural aspec , hink the luxury end s rea y about unplugging and not having o be on a the t me,?says Margaret ?Meg?

Sm th, globa real esta e advisor,Danie Ga e Sotheby?s Internat onal Rea ty in Bay Shore, New York

Th s s ahomebuyer prof le she frequen ly sees on Fire Island,New York, which s considered a aid-back alternat ve to the Hamptons This marke offers a lot of mult generat onal homes that are deal for buyers who are purchas ng with fam ly n mind, she says

For example,Smith recent y sold a property w th three separate housesthat had been reconstructed by arch tects so that one house was s ted on the bay, one faced the ocean and the th rd wascentered between them as an entertainment space Two brothers thought wasa perfect property for them because each one could have their own homeand they cou d bring their fami ies together in the m dd e for d nner and relaxat on,Smith says ?What we earned from that transaction s that a lot of peop e who own houses in o her partsof he country want a place where hey and heir fam y members can comp ete y shut out the outs de world and ust be themselves w thout hav ng to worryabout the hustle and bust e of the r regu ar ives They want to besurrounded by the peop e they cherish the most.?

Arch tectural changes can make it eas er for extended am ies to share ?

the r l ves w thout os ng the r pr vacy

?For examp e, a proper y that became known as the Three S sters House in Isl p New York, involved div ding up a large home owned by one sis er after the death of her spouse?Sm th says ?Each sis er had her own space, and another por ion became a space hey shared?

Bewarefinancial pitfalls

As s common for most uxury transact ons, homebuyers of multigenerat onal propert es often pay n cash.What is different,though,is the need to determine how to d v de respons b l ties for the proper y? such as taxes nsurance and ma ntenance costs? if he house s owned by mu tip e generat ons ?Financ ng can present hurd es, s nce arrangements can become comp ex when mu ip e generat ons are invo ved, often requir ng unconventional banking services,?Aoki says However, most h ghnet-worth homebuyers a ready have f nancia and estate plann ng adv sors, often w th an establ shed trus , who can help navigate f nancia agreements After a purchase in he U S , homeowners can transfer the property to the trust with a ?quitcla m deed,?a legal document used when transferring property withou a sa e

Thefutureof multigenerational living

As fam ly t es are becoming ncreas ng y va ued and the population ages, n erest in multigenerat onal iv ng shou d cont nue to be strong In the U S , as more states

and munic pa it es re ax zon ng laws regarding ADUs, more proper ies cou d be cand dates for this type of housing

Maine recent y adopted new regulations regarding ADUs on sing e-family properties, which ?creates va uab e opportunities for homeowners to expand the r v ng spaces,?says Wend and

In Brazi ,V ctorino says developers who recognize the demand for premium nfrastructure with flexib e mu t generationa use w l be at the forefront of a constant y evo v ng market,where luxury,convenience and a connection to nature define a new concept of home

A though comprehens ve stat st cs for Japan are im ted, s nce many mu tigenerationa homes are customdes gned and rare y appear n public list ngs, Aok be eves the overa trajectory is ev dent ?Compared to 10 years ago, demand has grown sign ficant y, especia ly among aff uent am ies seek ng proper ies that can serve as last ng legac es,?he says ? n response, deve opers are introducing dedicated pro ects ta ored to this niche?

In today?s evo ving landscape, the intersect on of r sing housing costs, more expensive e dercare and sh f ing am y dynamics have created a sustainable market for uxury mult generat ona properties For affluent fami es, these purchases represent more than a ifesty e choice? they are strategic investments that address mu t p e financ al ob ectives wh le creat ng space for the am y to thrive across generat ons

Whether they are for vacat ons w h ex ended fami y or year-round v ng, mu tigenerationa homes o fer the chance to deepen family connect ons and create a asting rea es ate egacy. -

PRIVATE lives

Thesecurity featuresthat matter most to high-end homebuyerstoday

For many of today?s wealthy homebuyers, concerns about safety and pr vacy shape purchase decis ons as much as loca ion and pr ce Discreet arch tec ura design, gated access and advanced techno ogydriven secur y features are increasing y in demand

Accord ng to a July 2025 survey by the independent research site SafeW se wh ch tes s and rev ews home security products, break- ns remain the eading property crime concern 1 However, data from the Federal Bureau of Inves igat on shows that home burg ar es have ac ual y decl ned by at least 68% in the U S over the past three decades, SafeWise reported in August 2025 2 Such concerns aren? t imited to the U S ? they are also fuel ng substantia growth in the g obal home security market The worldwide spend on ?smart?home security s estimated to reach US$39 b ll on by 2029, according o a Ju y 2025 report by marke research firm Statis a, w th he number of househo ds having

some form of ?smart?security nstalled reaching an estimated 11b ll on by 2029 3 In response to homebuyers?privacy worries, some rea estate agents are tak ng proact ve measures They may run stings without street numbers or remove a l on ne presence of a proper y at he close of escrow

Nick Damianos, global rea estate adv sor,Bahamas Sotheby?s In erna iona Realty, s ays ahead of client preferences us ng market research to track adoption trends of various smar home technologies, nclud ng c osedcircuit te ev s on (CCTV) and intrusion detection, and keeps a close eye on new systems as they become ava able

Designersrespond to security demands

1.1

Beyond the data, Damianos turns to arch tects who design for u tra-h gh-networth (UHNW) cl en s ?They have to stay at he forefront of what?s nvo ved n terms of security considerat ons,?he says In the Bahamas, property market buyers most often ask to see single-family homes or estates in gated commun ties These prov de the benefit of added privacy w th he same evel o service as condom n ums with concierges ?You get 24/ 7 secur ty staf , patrols and mon tored entr es p us and and sea perimeter surveil ance,?Damianos adds Sometimes he ru es out showing certain propert es such as o der estates bu lt before gated commun t es became a real y, f they are on a public beach or near a resort. Even properties tha might seem deal? private islands, for examp e? can pose challenges ?Ce ebrities often feel safe on is ands because they are some of the on y p aces n the world where they can be sure they?re not go ng to be bothered by anyone,?Damianos says ?But an island can be more d fficu t o secure than a house in a gated commun ty?

Accord ng to the 2026 Sotheby?s Internationa Realty agent survey (see page 22), v sib ity onto a property was high on he is of secur ty and privacy considerations vo ced by luxury homebuyers, with near y 44% of respondents ranking t as he top concern among c ients ?One of the first th ngs look at on a property is the s ght lines,?Dam anos says ?Where can peop e n pub ic spaces, whether on a road or on the sea, easily see into the property??In the Bahamas, buyers may have to weigh the benef ts of privacy aga nst ocean v ews, he adds ?Strateg c landscaping s probably the best way to achieve the best of both worlds If you?ve got a ong winding dr veway, you cou d pu n landscaping or trees so the house is not visible from the road It is also quite common for homebuyers to buy two adjacent ots.?

External security a so ranked high among homebuyers?concerns, according to 44% o agents surveyed. As a general ru e, mu t story homes are easier to secure than single-story des gns because there are usual y fewer ground-level access po nts This architectural feature a one can nf uence buy ng cho ces ?The accessibi ty of secur y measures, especia y CCTV, s w despread, and the ma ority o homes I se l have some form o t,?says Neyshia Go, g obal rea estate adv sor, Sotheby?s Internat onal Rea ty - Bever y H ls Brokerage Infrared sensors or per meter laser beams can be pa red w th secur ty cameras to detect heat signa ures as we l as movement

The globa market for security cameras was est mated to have reached US$172 bi ion n 2025, accord ng to a July 2025 report rom Stat sta with revenue expected to grow annua y by 8.83%. It s??

Secur ty concerns among homebuyers Source 2026 So heby?s Internationa Real y agen survey

predic ed to reach US$24 2 bi lion by 2029, w th 578 5 mi ion households expected to have security cameras 4

A ongside ex er or pro ection, interior mon or ng and secur ty was an mportant feature for homebuyers, accord ng to the agent survey, with 19% of respondents citing this as a common concern Michael

Keeping an eye on your proper y

Source:

US$17.2 billion

Martinez, globa real estate adv sor, ONE Sotheby?s Internat onal Rea y in M am , F orida, has seen indoor cameras at the entry po nts of homes in h s market, which ncludes the high-end ne ghborhoods of Pinecrest and Coral Gab es ?In a two-story house they? put a camera by the sta rcase?Martinez says ? somebody comes n on the ground leve , the owner can monitor th s on the r phone or tab et ?

Backup power paysoff

Whi e mak ng sure a home is secure ins de and out s key, unctiona issues are a so top of the agenda for many homeowners

578.5

The second-most-frequent concern den ified in the agent survey, at 35%, was having a backup power system a feature that is near y ub qu tous in the stormprone Bahamas ?At the high end we see peop e having dua -fuel genera or systems w th propane backups for redundancy,? Dam anos says ?People are also adding solar arrays with battery s orage? The des re for such features s not m ted to he Bahamas? buyers in par s of Southern Ca fornia are also prior t zing standby power systems In Mal bu, Calabasas and other windy areas of Californ a there is grow ng demand for

compact solar battery systems, such as the Tes a Powerwa l ?If you?re going to ve in neighborhoods tha are more prone to power outages, it?s rea ly important to get backup generators,?says Go Her clients have found solar backup systems are a viab e a erna ive to more tradit onal diesel, natural gas or propane generators ?It means you won? t run out of power, because every day recharges your energy supp y? Bes des the peace o m nd of hav ng an mmedia e power source, she cites a property value advantage to such a system ?I th nk they are worthy inves ments and great for resale Homes w h backup generators and alternative energy systems defin e y demand a h gher pr ce point ?

Taking a high-tech, holistic approach

For more robust protection, some homeowners go a step further and bu ld a secure space that can be used for many different purposes? as a pan c room or to store jewe ry and important documents. ?Even the staf who work n the house often don? t know the room ex sts because it?s

beh nd a c ose or heavy cloth ng or d sguised by a bookshe f,?Martinez says Bespoke safe and panic rooms are espec ally popular in Europe and the U S , accord ng to a comprehens ve June 2025 report by market research rm Valuates which pred cts a compound annual growth rate of 76% through 2031 or the industry 5 Among ma or g obal prov ders are For ified Estate, Henleys Security Doors and Bespoke Home & Yach Secur ty, wh ch offer armored doors and fort fied wal s that can be ncorporated into new-bui ds or the retrof t of a c oset, bedroom or office U K -based Henleys makes wooden secur ty doors that have concealed so d stee cores and can be customized to rep ica e any n er or or ex er or wood fin sh? even ?the h gh-gloss f n sh of Number 10 Downing Street,?accord ng to its website Alongside physical re nforcements, technology-enab ed access systems are becom ng more sophist cated and readi y ava able F ngerprint recognition systems are growing n popular y, and there s ncreased ntegrat on with other smar home devices Fac al recogn tion, already n wide use for phones, computers and other persona devices, is also an option, as are voice or ir s recogn ion systems

Other nterior de errents Martinez sees in Flor da?s luxury homes are cen ra a arm systems with remote ce lular backup that can cal the local po ce in the event of a break- n Reinforced bui d ng materia s, such as g ass designed to withstand winds of up o 180 miles per hour, are a so common ?Impact g ass is much harder o break than a regular w ndow,?Mart nez says ?If you take a baseba l bat to it, you may crack the glass, but you?re not going to be ab e to put your hand through and turn the dia on a lock?

Wh e biometric entry, CCTV and gated community access can deter th eves and may help n an investigation after a loss, they are not usual y required for nsurance

purposes and won? t necessari y command a d scoun , says N ck Kin ry, a clien adv sor with World Insurance Private C ent Group However, a cen ra ly mon ored f re and burglar alarm system may be requ red by insurance companies for homes above a certa n value

Kiniry sugges s buyers ake a ho istic v ew.?Rather than ust meet ng the requ rement by hav ng a burglar or fire a arm peop e shou d really be think ng beyond that to provide add t ona ayers of protection and m tigate any oss,?he says This broader approach to protection extends beyond physica threats. While only 9% of Sotheby?s Internat onal Rea ty aff lia ed agents surveyed men ioned cybersecur ty as a concern among homeowners, n Damianos?s market it s a widespread concern ?We get a ot of high-prof le fund managers and people who are very b g in the f nancia indus ry,?he says ?H ghspeed internet access s very mportant for them, as we l as the safety of their connect on A lot of these people w l insta l ?en erpr se-grade?f rewa s or pr vate networks to protect the financ al data they may be hand ing?

Safety isa selling point

Technology, however, is on y part of the picture The need for space for pr vate secur ty personnel was den ified by 12% of those surveyed ?We do see the need for space a lot more w th celebrity c ients, who of en have an en ourage? not just or security posts but for sleep ng quarters as we ,?Mart nez says Celebr y and UHNWc ients may a so send in a team to conduct a pre-purchase secur ty audit, fly ng in exper s to exam ne the area and the property and to determ ne exit or extraction strategies in case of an emergency

Even with al the dev ces and safeguards availab e, Martinez starts by arming h s F oridabuyers w th n ormation about he surround ng area ?They want to know about the neighborhood, the loca policedepartment and any ex sting concerns,?he says His buyers tend to favor incorporated neighborhoods w th the r own po ce departmentsor gated commun ies with guarded entry points and roving secur ty Street ocat on can play aro e n decid ng where to buy, Mart nez adds Some cl en s shy away from intersect ons due to higher vis bil y, wh eothers prefer the added activ ty and access b lity of a more visible loca ion Cons der ng loca regu at onsis important too Go is we l versed n the bu lding codes across dif erent neighborhoods in her Bever y Hil s,Los Ange es and Santa Barbara terr or es Some areas have maximum height limits for gates and fences,while o hersdon? t permit gatesat al ?If you?re a high-prof leor celebr ty cl ent, I?m going to d ssuade you from a coup eo neighborhoods hat Iknow aren? going to a low you the security you des re,?she says At the end of the day,proper y address ng buyer concernscan have a financ al payoff for the home se er, Mart nez says ?In my experience,gated entrances, ful -per meter surveil ance, impact w ndows and privacy landscaping can drive faster sales andstronger offers These features can help e iminate days on the market, and in some cases even command a h gher pr ce per square oot ? As pr vacy concerns continue dr ving luxury homepurchases buyers who prior ize secur y featuresearly in their search? from backup power systems to b ometr c access contro s? are pos tion ng themselves ahead of atrend that s reshaping the h gh-end market -

Bibliography

In addition to interna market data from he Sotheby?s Internationa Realty brand and ts aff l a es, his report cites the fo lowing data sources and art cles:

We come

1 ?Ou pe orming?c a m based on Sotheby?s n erna ona

Real y?s 2025 performance versus Sotheby?s n erna ona

Real y?s 2024 performance, wh ch resu ted n an 8 7% increase In compa son NAR?s overal 2025 market performance versus NAR?s ove a l 2024 marke performance resul ed n a 2 9% ncrease NAR?s market performance based on report: ?NAR: Ex s ng-Home Sa es,? re eased September 2024 and Sep ember 2025

2 ?De ta P ed c s P em um Seat

Sa es to Overtake Economy as Soon as 2026?The Wal Stree Journa , October 8, 2025

3 ?Auro a Cap tal nabs buyer fo $88M penthouse a 140 Jane Stree ?The Real Dea August 8 2025 Endurance Test

1 ?Seven F gures s Not What t Used to Be - Luxury Now Star s a $13 M l on?Rea or com® Sep embe 30, 2025

2 ?Rates Rema n Nea 2025 Lows?Fredd e Mac, Novembe 6 2025

3 ?Consumer Pr ce ndex Summary,?U S Bureau o Labor Stat s cs, October 24, 2025

4 ?Home Sa es to Jump Near y 10% n 2026 Fo ecas ers Say,?Real Estate News Sep ember 23,2025

5 ?How to Inves Your Enormous Inher ance,?The Economis June 12, 2025

6 ?Top 10 Trends o Wa ch in 2025,?Ce u Assoc ates, Q12025

7 ?What Wea thy Parents Need o Know About G v ng Rea Estate to The r K ds,? CNBC, Augus 23 2025

8 ?Inher ng Is Becom ng Near y as mpor ant as Work ng?The Econom st, February 27, 2025

9 ?M am Beach?s Most Expensive Pen house Just So d n Amer ca?s Larges -Known Cryptocurrency Rea Estate Dea ,?Forbes, June 7, 2021

10 ?Duba ?s B ueprint or Real Es a e Fu ure: Dig ta zat on and Crypto n the Wor d?s Most Luxurious Market,?Forbes February 24 2025

11 ?Cryp o Mortgages Are the New Way o Buy Second Homes? Rea or com®, June 26, 2025

12 ?Joint Sta emen from the Cha rman o the SEC and Act ng Cha rman of the CFTC?

U S Secur t es and Exchange Comm ss on, September 5, 2025

13 ?Fannie Mae, Fredd e Mac Ordered to Consider Cryp o as an Asset When Buying Mo gages,?AP News June 25 2025

14 ?Want o Buy a House W h Crypto? Here?s Wha to Expec ,? Yahoo F nance, August 5, 2025

15 ?Gem n Survey F nds More Than Hal of Gen Z Owns Crypto,? Gem n , Janua y 25 2025

16 ?Amer ca?s Most Expens ve Z P Codes,?Real or com®, Augus 19, 2025

17 ?Mos Expensive Home in Amer ca H ts he Market a $300 Mi on?Forbes August 28, 2025

18 ?Duty Free Ame cas Cha rman Asks $65 Mi on for Puer o R co Mans on?The Wa Stree Jou nal Oc ober 21, 2025

19 ? n erna ona T ansactions n U S Res dent a Real Esta e? Na ona Assoc ation o REALTORS®, Ju y 14 2025

20 ?2025 G obal Trave T ends Report,?Amer can Express Trave ® Ma ch 2025

21 ?Proper es Worth More Than £2m n England Face Mans on Tax?BBC, November 26 2025

22 ?The Re urn o New Zealand?s ?Go den Visa?Comes at an Oppo une Moment fo Fore gn Home Buye s?Mansion G obal September 12 2025

23 ?Housing Market Out ook: Brighte Days o Come?

Na ona Mortgage Profess ona ,? Na ona Assoc ation o REALTORS®, June 12 2025

Prime Numbers

1 ?The Top C t es Whe e the Ul rawea thy A e Buying Second Homes n 2025? and t?s Not Just London or New York,? Business Ins der, August 9, 2025

2 ?The Threa o De at on S a ks As a?s Econom es?The Econom st, September 1, 2025

3 ?Fede a Reserve Issues FOMC Sta emen ?U S Federa Reserve press re ease, December 10 2025

4 ?MBA Forecas Commentary September 2025?Mor gage Bankers Assoc a on September 2025

5 ?2025 Home Buye s and Se lers Genera ona Trends Report,?Na ona Assoc at on of REALTORS®, Apr 1, 2025

6 ?Weal hy nvestors from U S Ch na and Hong Kong Top App ica ons for New Zea and?s ?Go den Visa?Scheme?The Guardian, September 24,2025

Inventory Re urns

1 ?Unso d Invento y o New Homes Hi s Highest Leve S nce 2009,?Scripps News, October 16 2025

2 ?Am d a Pandem c and a Recess on, Amer cans Go on a Near-Record Homebuy ng Spree,?Pew Research Center, March 8, 2021

3 ?Across Europe the F nanc al Sec or Has Pushed Up House P ces I ?s a Po t ca Timebomb,? The Guard an July 7 2025

4 ?Augus 2025 Mon h y Hous ng Marke Trends Repo ,?Real or com®, September 8, 2025

5 ?What Are Branded Res dences and Who?s Buy ng Them?? Yahoo F nance Ju y 9 2025

6 ?Hous ng Inventory: Act ve Lis ng Count in he Un ted S ates,?Federal Reserve Bank of St Lou s, Ju y 31 2025

7 ?As nven ory R ses, Home Buyers Are See ng Opportun ty,? Nat ona Associat on o REALTORS®, August 21 2025

8 ?NAR Ex st ng-Home

Sa es Report Shows 0 2% Decrease n Augus ?Na ona Assoc at on of REALTORS® September 25, 2025

9 ?The U S Hous ng Div de Top 10 Sel er?s Marke s and 10 Whe e Buyers Have the Upper Hand,? Marke Wa ch, Augus 24 2025

10 ?Market Upda e, A Houston, Q3 2025?Martha Turner Sotheby?s n erna ona Rea ty October 10 2025

11 ?Memor al V ages Single Fam y Homes, Q3 2025,?Martha Turner So heby?s Internat onal Rea ty, October 10 2025

12 ?Br a grove Park S ng e Fami y Homes, Q3 2025?Martha Turner So heby?s Internationa Rea y, October 10 2025

13 ?A V ew from the Cayman Is ands,?80 Degrees Today, May 7, 2025

14 ?Turks and Ca cos Rea Esta e ? 2nd Quarter 2025 YTD Comparison Market Repor ? Turks & Ca cos Sotheby?s Internationa Rea y, July 15, 2025

15 ?House P ce ndex? 4 h Quarter 2024?Ins tu o Nac onal de Esta st ca (Statis cs Portuga ) March 21, 2025

16 ?Four Seasons Announces New S anda one Pr va e Res dences n Wash ngton DC ,? Four Seasons press re ease March 20, 2025

Game On

1 ?The Par s 2024 Games in Numbe s?C ty of Paris off c a webs te, October 9, 2024

2 ?F FA Wor d Cup Qatar 2022? in Numbers? FIFA? , January 2023

3 ?The O ymp c Effect,?Nat onal Bureau o Econom c Research Apr 2009

4 ?The Pr ce o V ctory: The Impac of he O ymp c Games on Res dentia Rea Es a e Ma ke s? Urban S udies Apr 2012

5 ?The O ymp cs and Economics 2012,?Go dman Sachs,Ju y 2012

6 ?The Causa Economic E ec s of O ymp c Games on Hos Reg ons,?W FO (Aus r an Inst ute o Econom c Research Wo k ng Papers, January 24, 2020

7 ?Olympic House Prices Boom Fa s to Get Out of the B ocks?

The Guard an Ma ch 13,2012

8 ?House Prices n O ymp c Dis r c s Soar 45% S nce 2005,? The Te egraph, July 27 2013

9 ?Paris and M an, Olymp cs E ec on House Pr ces?I Sole 24 Ore Ju y 22,2024

10 ?The E ec s of he 2014 Wo d Cup n Rea Estate Market in Rio de Jane ro and São Pau o,? Inte nationa Proceed ngs o Economics Deve opmen and Research, March 2014

11 ?The W nner o the World Cup Is O ten the Hos Nat on?s Rea Es a e Marke ,?Mans on Global December 18, 2022

12 ?R o?s $700 M l on Athletes V l age Was Turned n o Luxury Condos bu Is Now Repo edly ?Shutte ed?and 93% Vacan ,? Business Insider, Ju y 18 2017

13 ?The Money Beh nd the Most Expensive Wor d Cup n H story: Qa ar 2022 by the Numbe s? Forbes, November 19, 2022

14 ?Thousands o Workers Evicted n Qata ?s Cap ta Ahead o Wor d Cup,?Reu ers, Oc ober 29 2022

15 ?Qatar?s Res dentia Property Marke Ana ys s,?G oba Proper y Gu de June 30, 2025

16 ?The Research on Pos -O ymp cs Economic Downtu n Effects,?Inte nationa Academ c Workshop on Soc a Sc ences Oc ober 2013

17 ?House P ces and Rea Inte es Rates in Spa n,?Banco de España (Bank of Spa n) Oc ober 30, 2006

18 ?Newham n East London Has S eepest House P ce R ses o he Century?The Guard an December 28 2019

19 ?Foreign-Buyer Numbers Ris ng S eadi y: PropSta s? Property Pro essiona , Februa y 10, 2015

20 ?O ympic Games ?Poorly Spent Money?De ivers Property Price Spikes?Austral an Proper y Investor, July 28 2023

21 ?O ymp cs Pu s Spo ght on Tokyo P oper y Marke ? Hous ng Japan, July 20, 2021

22 ?Hos ng the 2026 F FA Wo d Cup? Cou d Create More Than $5 Bi l on n Econom c Activ ty for North America,? Socce Forward Foundation, Februa y 8 2018

23 ?The 2026 F FA Wor d Cup F na ?s n luence on Rea Estate n NJ and NY,?B ueprint (New York Un versi y Schack ns tu e of Real Esta e March 26, 2024

24 ?Ar ngton Prepa es for G oba Spot gh as 2026 F FA Wo d Cup Approaches?CBS News June 12 2025

25 ?These New Ho e s Are Rede ning he Do om tes, Just n T me for he 2026 W nter O ymp cs,?Vogue Ju y 29,2025

26 ?Queen?s Whar Br sbane,? Queensland Governmen S ate Development, Infrastructure and P anning, December 14, 2024

27 ?Br sbane o Ge New Stad um for 2032 O ympic Games?ESPN, March 24 2025

Mult generat ona Liv ng

1 ?2025 Home Buyers and Se ers Genera ona T ends Report,?Nat onal Assoc a on o REALTORS®, Apri 2025

2 ?Fam y Matters: Mu tigenera ona L v ng s On the R se and Here To Stay,? Generat ons Uni ed® Ju y 2021

3 ?One B g HappyHousehold: How Fam ies and theData Are Shap ng Mu tigenerat onal L ving,?Nationa Assoc a on of REALTORS®,May 27, 2025

4 ?Vo ces of Aff uence: The F s UHNW Survey on Greek Luxury Rea Es ate,?Greece So heby?s n erna ona Rea y,2025

Pr va e L ves

1 ?The S a eof Safety n America 2025?Safew se,Ju y 2 2025

2 ?10 Surpr s ng HomeBurglary Fac s and Stats,?Sa ew se, August 12 2025

3 ?Securi y? Wor dwide,? S a sta, July 2025

4 ?Smart Secur ty Cameras? Wor dw de? S at sta Ju y 2025

5 ?G oba Bespoke Safe Rooms and Pan c Rooms Market Research Repor 2025? Valuates, June2025