As we enter the 2025-2026 financial year, the timing is ideal to review the performance and ongoing confidence in the luxury real estate market.

Amid ongoing geopolitical turbulence, elevated interest rates in certain countries, and shifting fiscal policies across the globe, luxury real estate continues to demonstrate resilience, driven by high-net-worth individuals seeking stability, lifestyle, and diversification.

The global trend is clear: cash-rich buyers remain active, favoring tangible assets in prime destinations. Interesting fact, Mauritius enters this landscape with a distinct edge, ticking both the lifestyle and investment boxes.

Looking ahead, macroeconomic shifts may influence performance, but early indicators for 2025–2026 suggest steady demand. This reflects ongoing confidence in the luxury real estate market 2025.

The 2025 Mid-Year Sotheby’s International Realty Luxury Outlook Report delves into the pivotal, forward-looking issues shaping luxury residential property markets around the world.

After a strong close to 2024, the luxury segment continues to outperform broader market trends. “The Sotheby’s International Realty brand’s U.S. sales volume growth reached 9.4% in 2024, outpacing the 5.2% growth reported by the National Association of Realtors,” notes Philip A. White Jr., President and CEO of Sotheby’s International Realty. This outperformance, he adds, was driven by high-net-worth buyers’ preference for tangible assets and their capacity to transact in cash, insulating them from rising interest rates.

On a global scale, Sotheby’s International Realty recorded a landmark year, with sales volume reaching US$157 billion and US$4.6 billion generated through its global referral network, underscoring the resilience and enduring appeal of prime real estate.

Mauritius is expected to maintain a positive trajectory through 2025–2026, as geopolitical developments continue to shape the flow of international demand. “Mauritius remains a destination of choice, both from a lifestyle and investment perspective, ticking both boxes,” says Timo Geldenhuys, Director of Mauritius Sotheby’s International Realty.

Traditional feeder markets, particularly French-speaking Europe and South Africa, remain robust, while German-speaking countries have significantly expanded their share of activity. “Notably, buyers from these regions are gravitating toward the higher end of the market. The UK is also showing signs of a resurgence, largely driven by recent changes in fiscal policy for non-domiciled residents.”

According to Timo, 80% of transactions are carried out in cash, reflecting the financial strength of buyers and reducing exposure to currency value changes. Notably, the total value of successful sales increased across the USD, EUR, and MUR markets.  The year also saw an extraordinary transaction reaching the USD 10 million mark – a deal signed by Chris Lazare, Director of Mauritius Sotheby’s International Realty.

While most property prices are denominated in EUR, USD, or ZAR, limiting the impact of Rupee volatility, off-plan developments remain more sensitive to exchange rate shifts. Developers, Timo says, do adjust pricing from time to time to reflect these fluctuations, whereas the resale market is largely insulated, reflecting confidence in the luxury real estate market 2025.

The first two months of 2025 marked one of the busiest starts to the year in the New York City luxury property market in two decades, says Juliette R. Janssens, Global Real Estate Advisor, Sotheby’s International Realty, East Side Manhattan Brokerage. “We saw momentum pick up after the election due to pent-up demand and increased liquidity from previous stock market performance,” adds Allison B. Koffman, Global Real Estate Advisor at the same office. “We have experienced bidding wars at every price point, from US$2 million to US$10 million and up.”

According to an April 2025 report by Realtor.com, the top half of the wealthiest U.S. households saw the biggest real estate value gains in 2024. “Everything in the economy is uncertain at the moment, but in the high-income world, that translates to opportunities,” says Selma Hepp, Chief Economist at Cotality.

*UK Sotheby’s International Realty

Demand for prime properties in central Paris remains strong, according to Delphine Gibert Avitan, Director, Propriétés Parisiennes Sotheby’s International Realty. “High-profile sales have continued, particularly in the most sought-after arrondissements. Buyers are increasingly selective, favoring properties with unique architectural or historical character. There’s growing demand for outdoor space and energy-efficient features, driven by evolving regulations and lifestyle preferences.”

In London, the mood is cautiously optimistic. “Buyers in London in 2024 did very well because there was lots of supply and the market was unsettled before our general election,” says Becky Fatemi, Executive Partner, United Kingdom Sotheby’s International Realty. However, a key shift has been the departure of wealthy buyers from Europe, the Middle East, and Africa following U.K. tax reforms. 

Sydney remains one of the world’s most expensive luxury property markets. Meanwhile, Melbourne, Perth, and Brisbane are emerging as attractive alternatives for value-driven luxury buyers seeking lifestyle appeal.

In Australia’s major cities, demand is being fueled by ultra-high-net-worth individuals and growing interest in prestige property investments. Forecasts from Cotality and Domain suggest a 5.3% annual property value growth in 2025 compared to 2024, alongside robust demand for landmark residences and branded developments.

From April 1, 2025, foreign purchases of existing homes are on hold for two years. However, this restriction does not apply to new developments, which continue to offer strong ownership and investment potential for international buyers.

“Singapore’s luxury housing market was noticeably slower until the summer of 2024, when interest rate cuts by the U.S. Federal Reserve encouraged economic confidence among homebuyers and investors”, says Sueann Lye, Global Real Estate Advisor, List Sotheby’s International Realty, Singapore.

“There was a noticeable flow of wealth into the Singapore market in 2024, indicated by higher sales in the second half of the year,” Sueann says. “On a per-square-foot basis, the average price of so-called ‘good-class bungalows’ rose 4% year-over-year from 2023 to 2024. In 2025, we expect this segment to strengthen further due to limited supply.” A “good-class bungalow” is a planning classification reserved for single-family homes on at least 1,400 square meters of land in 39 designated areas—typically the most prestigious homes in Singapore.

Despite ongoing geopolitical uncertainty, the luxury real estate market in the Middle East remains robust, says Zhanna Yerkozhanova, General Manager, Qatar Sotheby’s International Realty. “High-net-worth individuals are actively purchasing exclusive properties in prime locations. Foreign investment is expected to rise, driven by favorable exchange rates and government policies targeting affluent buyers.”

In 2024 alone, an estimated 6,700 millionaires relocated to the UAE, with Dubai standing out as a global luxury magnet. As demand outpaces supply, developers are responding with new stock, luxury mansions and penthouses priced from US$60 million to over US$120 million, catering to buyers from Europe, Asia, and the Americas, according to a February 2025 Bloomberg report.

As the second half of the year unfolds, the luxury real estate market 2025 continues to show strong fundamentals across key global cities. While each region adapts to its own set of macroeconomic and political shifts, one theme remains consistent: high-net-worth buyers are prioritising security, lifestyle, and long-term value. 

In this context, Mauritius stands out as both a stable investment environment and a sought-after lifestyle destination, positioned at the intersection of opportunity and elegance. 

For those looking to engage with the global luxury real estate market 2025, the island’s performance confirms its place on the map. 

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