Cont ent s 6Endurance TestWhy luxury real estate is outperformingthe overall housing market. 52Mult igenerat ional LivingMore and more homebuyers are seekingproperties to accommodate familymembers of all ages, for bonding timeand building generational wealth. 22Prime Numbers Key insights from the 2026 Sotheby?sInternational Realty®agent survey, frompurchasing second homes to an uptickin Millennial buyers. 64Privat e Lives Front and back covers:A new resident ialwellness sanct uary inAust in, Texas, bringsnat ural element s int oit s serene design. Designers, agents and new technologyare responding to the top concerns forluxury homebuyers. 32Invent or y Ret urns 70Propert y Index A rise in housing levels in the U.S. isbringing new opportunities for buyers. Learn more about the homes picturedin this report. 4 2Game On 72Bibliography How international sporting events canimpact luxury property prices? andwhat ensures a long-term win. Right : A 17-acre est at ein t he heart of t heBuckhead dist rict inAt lant a, Georgia. A compilation of the sources citedin this edition. W elcome A t ale of t wo econom ies A. Bradley Nelson, chief m ar ket ing of f icer,Sot heby?s Int er nat ional Realt y, int roducest he 20 26 Luxur y Out look repor t . The latest edition of our report providesinsights into trends and developments thataffect the global luxury real estate market.Outperforming traditional real estate in2025, both in sales and increased value,1we expect luxury real estate to continuethat trajectory in 2026. a premium economic foundation thatprovides greater stability against volatility. Our research also demonstratesthat luxury property buyers are lessconstrained by geography andmacroeconomic factors than otherhomebuyers. Sustained wealth creationthrough real estate and equity investmentscontinues to be a key driver of globalluxury markets. Some good news from2025 that bodes well for the luxury realestate market in 2026 is that inventorylevels have rebounded to where they werepre-pandemic. A balanced real estatemarket is healthier and more sustainable,with more options for homebuyers. The report also reveals there areeffectively two real estate markets?the luxury market and the generalmarket? which perform differently.That phenomenon is seen not just in realestate but also in banking, finance andeven the airline industry, where Delta AirLines is focusing its growth in the premiumsector, as reported by The Wall StreetJournal in October 2025.2The resilienceof the luxury real estate market reflects To respond to changing marketconditions, both home sellers andhomebuyers should consider the ?firstmover advantage?? being the first toact decisively when opportunities ariseor shift. This is often seen in developmentprojects that are the first to adjusttheir pricing. These projects often gainmomentum and attract more offers,which snowballs into the developmentbecoming the hottest in the market. for US$ 87.5 million with Nikki Fieldof Sotheby?s International Realty-East SideManhattan Brokerage representing thebuyer. The residence is expected to closearound early 2027 and will mark a record-setting deal for downtown Manhattan.3 brand?s network provides uniqueinsight into these evolving trends andshifting priorities. Whether it?s luxuryhousing under construction in Utah oremerging developments in Dubai, thebrand?s affiliated agents across thesemarkets offer deep local expertiseand comprehensive global knowledge.This worldwide reach enables homebuyersto make informed decisions? wherevertheir search takes them. Today?s wealthy homebuyersare also prioritizing safety and privacyin ways that are reshaping design,from advanced security systems tobackup power generators that ensureuninterrupted comfort and protection. BOT H HOM E SEL L ERS A N DHOM EBUYERS SHOUL DCONSIDER T HE ?FIRST M OV ERA DVA N TAGE??BEIN G T HE FIRSTT O ACT DECISIV ELYW HEN OPPORT UN IT IES A RISE. We?re also seeing a meaningfulshift toward multigenerational livingamong wealthy households. This trendis about more than a lifestyle? althoughclearly one major goal is spendingtime with loved ones. It is also aboutlong-term estate planning and legacybuilding, a way homeowners cantransfer some of their wealth duringtheir lifetime by building or buyinga home for their heirs. Beyond market dynamics,this year?s report examines the broaderforces shaping luxury real estate decisions.We explore how political and economicpolicies impact the upper end ofresidential real estate markets, therising influence of cryptocurrency,fluctuating inventory in the U.S. andglobal markets, and how major globalsporting events can create lastingimpacts on the luxury housing marketsin host cities when paired with thoughtfulurban planning in the wider area.Photo: Belgium Sotheby?s International Realty. For home sellers, that means pricingrealistically rather than opportunisticallyand considering the potential negativeimpact of carrying costs if they decideto wai