Single Women and Wealthy Millennials to Drive Luxury Real Estate Purchases in 2025

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The latest Sotheby’s International Realty report predicts a stable real estate market in 2025, with significant demographic shifts, Bloomberg reports. Key factors include the migration of high-net-worth individuals (HNWIs) and the increasing presence of new buyers in the luxury sector.

Hotspots for Luxury Buyers

A forecast from Henley & Partners projects that over 135,000 wealthy individuals will relocate to new countries in 2025, up 7,000 from 2024. The UAE, particularly Dubai, remains the top destination, attracting affluent buyers with tax benefits, “golden visas,” and a high quality of life. Branded residences, which cost 25% more than similarly sized and styled homes, are especially in demand in Dubai.

The United States ranks second as a preferred destination, though foreign real estate purchases in the country have dropped to a historic low. Between April 2023 and March 2024, foreign buyers purchased just 54,300 properties worth $42 billion, a stark contrast to 2017, when they spent $153 billion on 284,500 properties. Despite this, Bradley Nelson, Chief Marketing Officer at Sotheby’s, notes that foreign buyers remain crucial in the ultra-luxury market, particularly in high-demand areas.

The wildfires in Los Angeles, which destroyed several luxury homes, are unlikely to have an immediate market impact. However, as displaced families seek new properties, demand may shift in the future. Nelson believes that as housing supply stabilizes, foreign interest in U.S. real estate will grow, especially in competitive markets where properties sell within hours.

Luxury real estate is also experiencing a boom in Georgia. By 2028, over 300 new hotels from international brands will open in the country. In 2025, Georgia will welcome Hilton Garden Inn Adjara, Hilton Tbilisi, Hotel Sololaki Hills, Ambassador Batumi, and Paragraph Golf & Spa Resort Tabori Hill, with 170 to 200 rooms each.

One of the most ambitious projects is Wyndham Grand Batumi Gonio, a 1,055-unit resort complex featuring family residences, townhouses, and Georgia’s first 5-star all-inclusive resort infrastructure. Located in Gonio, Batumi’s most sought-after seaside area, the region is also set to host a large-scale development by Abu Dhabi-based Eagle Hills Properties LLC, including branded residences, hotels, retail areas, parks, and a yacht marina on 260 hectares.

Who is Buying Luxury Homes?

The luxury real estate market is witnessing a major shift: millennials are becoming a dominant force, prioritizing lifestyle over traditional investment strategies. They are increasingly drawn to properties with aesthetic value and historical significance.

In Italy, demand for historic villas surged following the release of season two of The White Lotus, which featured Italy’s stunning estates. This underscores how pop culture influences luxury buyers, particularly among younger generations who view real estate as both a status symbol and a lifestyle statement.

Social media is also transforming how millennials purchase luxury homes. Nelson notes that some agents now generate up to 90% of their sales through Instagram, marking a dramatic shift from traditional sales methods just five years ago. This digital transformation accelerates decision-making and expands deal-making opportunities.

While the buyer demographic is evolving, sources of wealth remain constant. A Legal & General study found that in the UK, 42% of real estate purchases by individuals under 55 are financed with parental support. Paloma Perez Bravo, CEO of VIVA Sotheby’s International Realty in Spain, confirms this trend:
“Across Latin America, from Mexico to Venezuela and Miami, families are thrilled that their adult children can study or start businesses in Madrid.”

Another notable trend is the rise of female buyers. In 1981, only 11% of U.S. homebuyers were single women, compared to 73% of purchases made by couples. By 2024, the percentage of single female buyers had risen to 20%, while couples accounted for just 62% of purchases.

Nelson highlights that women of all ages are increasingly investing in real estate as a means of wealth accumulation and personal independence. Older women, in particular, are downsizing to smaller, more functional homes that suit their needs. “Single female buyers are confident and eager to purchase property regardless of their romantic status,” says Nelson. “For them, real estate is a clear path to building wealth.”

Luxury Real Estate Price Trends

According to Knight Frank, in Q4 2024, Seoul led global luxury price growth at 18.4%. Manila dropped to second place with a 17.9% increase, but also saw a 7.6% price drop over three months—the largest decline among 44 cities.

Dubai ranked third, with luxury properties appreciating by 16.9% year-over-year, and 0.5% in Q4 2024 alone. Tokyo followed with 12.6% annual growth, and recorded a 10.6% surge in just three months—its highest quarterly increase in 17 years. Despite Japan’s interest rate hikes, the weakened yen continues to attract foreign investors to the luxury market.

Nairobi (Kenya) completed the top five, with price increases of 8.3% annually and 1.6% in Q4. Other cities in the top ten included Delhi (+6.7%) and Mumbai (+6.1%) in India, Madrid (+5.5%) in Spain, Perth (Australia), and Lisbon (Portugal), both up 5.3%.

At the bottom of the list, Frankfurt (-0.1%) and New York (-0.3%) saw slight declines. London prices fell 1%, Shenzhen (China) dropped 1.6%, and Auckland (New Zealand) declined 1.7%. Melbourne (-1.9%), Vienna (-2.6%), and Hong Kong (-2.8%) also experienced losses. The steepest declines were in Wellington (-3.5%) and Beijing (-4.2%).

Despite economic and political uncertainty, Knight Frank analysts highlight the resilience of urban luxury real estate. The Sotheby’s report projects continued growth in this sector, driven by shifting demographics. Millennials and women are set to play an even greater role in shaping the luxury real estate market in the coming years, reflecting new social and financial trends.