The Transfer of 84 Trillion Dollars Between Generations Will Transform the Global Luxury Real Estate Market
- Sotheby’s International Realty's Luxury Outlook 2025 report analyzes the impact of the largest wealth transfer in history, the rise of high-net-worth female buyers, and the global migration of investors.
- The growing interest of international buyers positions Spain as a key destination for luxury real estate investment.
- Spain Sotheby’s International forecasts a 35% growth in luxury home sales in 2025.
- Madrid ranks among the top European cities for profitability in the lu
xury real estate segment, with a 10% increase in prices over the past year.
Spain Sotheby’s International Realty has published its Luxury Outlook™ 2025 report, providing an in-depth look at emerging trends and key developments shaping the global luxury real estate landscape for the upcoming year. The report highlights significant factors such as the potential impact of the 84 trillion dollar intergenerational wealth transfer on the real estate market, the estimated movement of 135,000 high-net-worth individuals (HNWIs) to new destinations, and the influence of Best Places to Live rankings on property values and availability in each city.
In this context, Spain consolidates its position as a preferred destination for international buyers, driven by its exclusive lifestyle, competitive prices compared to other European capitals, and a constantly evolving market. According to Paloma Pérez Bravo, CEO of Spain Sotheby’s International Realty, "The luxury real estate market continues to evolve dynamically, influenced by global trends that directly impact demand and property values. In Spain, we are witnessing growing interest from international buyers seeking quality of life, exclusivity, and investment stability. This report allows us to anticipate these movements and strengthen our strategy to continue offering exceptional service to our clients. Additionally, with the consolidation of our presence in key markets, Spain Sotheby’s International Realty reaffirms its position as a leader in the luxury real estate sector."
Key Global Trends in the Luxury Real Estate Market
1. Increased Migration of High-Net-Worth Individuals
In 2024, 128,000 high-net-worth individuals moved to new countries. This number is expected to reach 135,000 in 2025.
Spain has become a key destination in this global capital movement, with significant interest in cities like Madrid, Barcelona, and Valencia, as well as coastal and inland destinations like Marbella, Menorca, and the Costa del Sol.
2. The Largest Wealth Transfer in History Will Impact the Sector
By 2045, 84 trillion dollars are expected to be transferred from the Silent Generation and Baby Boomers to Generation X, Millennials, and younger generations.
This shift is changing demand in the luxury real estate sector, with a growing preference for personalized, technologically advanced properties adapted to hybrid lifestyles.
3. Women and New Generations Redefine the Concept of Luxury
By 2030, women are expected to control 34 trillion dollars in investable assets, representing 38% of the total in the U.S.
According to Citi Private Bank’s Global Head Ida Liu, women will control over 50% of global wealth in the next five years.
In Spain, high-net-worth Millennials and Gen Z are becoming the predominant luxury clients, marking a new trend in buyer profiles for this segment.
4. Spain on the Radar of International Investors
15% of Spain's total real estate market corresponds to the high-end luxury segment, with a business volume close to 19 trillion euros.
Spain Sotheby’s International Realty forecasts a 35% growth in luxury property sales in 2025.
Madrid has established itself as one of the most profitable destinations for luxury real estate investment in Europe, with a 10% increase in premium home prices over the past year, second only to London and Paris.
The Costa del Sol and Menorca are experiencing growing demand from international buyers, consolidating their status as strategic investment enclaves.
Sotheby’s International Realty has significantly expanded its operational investment in Spain over the past year, strengthening its presence in key markets with new openings in La Moraleja, Marbella Golden Mile, Port d’Andratx, and Puerto de Santa María.
5. Luxury is No Longer Just an Investment, It's an Experience
25% of new developments in Spain are focused on the luxury segment, prioritizing amenities centered on wellness, exclusivity, and personalized services.
The off-market model continues to gain relevance, with growing interest in highly private and exclusive properties.
By the end of 2024, the global branded residences market was valued at 66 billion dollars.
Sustainability has become a decisive factor in luxury property purchases, with a focus extending beyond energy efficiency to include the use of durable materials and respect for the natural environment.
Spain Sotheby’s International Realty: Leading the Redefinition of Luxury
Spain Sotheby’s International Realty aims to achieve a 10% share of the luxury real estate market in Spain, consolidating its leadership through a strategy focused on specialization, personalization, and service excellence.
"Our priority is to be leaders in luxury real estate, not to cover the entire market. We focus on offering a unique value proposition, collaborating with the most qualified professionals, and adopting a relational approach that allows us to deeply understand our clients' needs," concludes Paloma Pérez Bravo.
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