Luxury Real Estate 2025: Global Trends Through a Canadian Lens

The 2025 Mid-Year Luxury Outlook Report from Sotheby’s International Realty delivers a compelling look at how the global luxury real estate market is evolving—and for Canadian buyers, sellers, and investors, it offers timely intelligence for staying ahead of the curve.

This year’s report underscores how luxury real estate has outperformed traditional markets across early 2025, despite global economic volatility. From high-net-worth individuals (HNWIs) prioritizing real assets, to emerging markets redefining prestige living, the report showcases why luxury homes continue to be viewed not just as safe investments—but as lifestyle statements.

Some standout themes:

  • Cash is King: 88% of luxury buyers worldwide now purchase in cash, leveraging wealth stability amid higher interest rates.

  • New Opportunity Zones: Markets like Puerto Rico, India, Saudi Arabia, and even parts of the U.S. (San Francisco, Salt Lake City) are emerging as new luxury hubs.

  • Insurance & Climate Risk: A sharp focus is placed on natural disasters and the rising need for bespoke insurance and resilient architecture.

  • Cross-Border Moves: Americans are purchasing in Europe and Mexico due to currency advantages—a trend that could affect cross-border activity for Canadian clients as well.

  • Generational Shifts: Gen X and Millennials are reshaping what luxury means, often looking for multigenerational functionality and long-term flexibility.

As a Canadian realtor with Sotheby’s International Realty, I find this report invaluable. It highlights how Canada—especially markets like Toronto, Vancouver, and Montréal—stands strong within this global landscape. With a consistent demand for lifestyle-driven investments, international interest, and tight supply in key urban centres, Canadian luxury real estate remains a robust and attractive asset class.

Whether you’re a buyer, seller, or investor, this is a must-read to understand where the high-end market is heading in 2025.

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