This sector of the real estate market is expected to maintain superior performance in 2026, supported by high liquidity, international demand, and a structural change in the profile of buyers, according to Sotheby’s International Realty’s Luxury Outlook Report 2026.
The premium real estate segment entered this new year with its own dynamics and a growing decoupling from the traditional residential market.
The main structural force identified is liquidity. Accumulated gains in financial markets, asset diversification, and international mobility support demand for high-end real estate assets, which simultaneously serve as residences, stores of value, and instruments for preserving wealth.
New buyer profile
Millennials and Generation X are gaining importance, driven by inheritances, asset successions, and new ways of creating wealth. These buyers prioritise adaptable homes, multigenerational solutions, integrated technology, well-being, and global locations, with a focus on quality of life and connectivity.
Regarding supply, the market indicates greater balance in some destinations, with stock recovering to pre-pandemic levels. However, normalisation remains uneven. Major European capitals continue to experience product shortages, while markets such as Spain and Portugal benefit from the growth of new developments and branded residential projects.
Regarding supply, the market indicates greater balance in some destinations, with stock recovering to pre-pandemic levels. However, normalisation remains uneven. Major European capitals continue to experience shortages of properties. The study also emphasises that price formation has become more demanding. Well-positioned properties continue to trade quickly, whereas overvalued assets remain on the market longer. Negotiation returns, but selectively, rewarding information, timing, and product quality.
The study also emphasises that price formation has become more demanding.