LUXURY Renaissance
A look at the locations that are becoming or re-emerging as centers for high-end living
Demand for high-end goods and real estate might not run in tandem, but they are both good indicators of emerging or improving luxury markets. In February 2025, for example, Sotheby’s held its first international auction in Saudi Arabia. The sale in the historic town of Diriyah included fine art, watches, jewelry, handbags and sports memorabilia. In downtown San Francisco, California, meanwhile, esteemed international brands are moving into premises that had been vacated due to the city’s challenges following the pandemic. India’s high-net-worth individuals—whose numbers are increasing—are also developing an appetite for expensive branded products and properties, while Puerto Rico is becoming a popular location for wealthy people seeking vacation properties or second homes.
In 2024, the global market for personal luxury goods experienced its first correction in 15 years. Although sales were down by little more than a percentage point from the previous year, some analysts believe the change could signal a potential slowdown in the luxury market overall. “All of the industry’s growth-driving engines have stalled,” was the assessment of consultancy McKinsey & Company in its January 2025 report The State of Luxury: How to Navigate a Slowdown.
This home in Salt Lake City, Utah, has panoramic views of the Wasatch Range, Great Salt Lake and the snow-capped Oquirrh peaks.
Summit Sotheby’s International Realty
However, analysts at fellow consultancy Bain & Company believe the long-term trend for luxury spending remains positive, though there has been a significant shift in consumer preferences, according to a press release from November 2024. “Luxury spending has shown remarkable stability this year despite macroeconomic uncertainty, largely driven by consumers’ appetite for luxury experiences,” said Claudia D’Arpizio, Bain & Company partner and lead author of the company’s annual Luxury Goods Report.
Bain’s tracking encompasses nine categories, including cars, hospitality, personal goods and art. There was a notable shift towards categories such as gourmet food and fine dining (up 8%) and private yachts and jets, with spending up by 13%. The market for cruises grew by 30%. Meanwhile, the 2025 Mid-Year Sotheby’s International Realty agent survey identified art and cars as the leading luxury products high-end homeowners also invest in.
Luxury consumer behavior doesn’t stop at goods and experiences—it has fundamentally reshaped expectations in high-end real estate markets as well.
The shift toward “experiential luxury” is an evolving consumer trait that has become prominent in real estate, particularly at premium price points. “What’s driving today’s high-end market is the feeling a home delivers as much as its address,” says Tammy Fahmi, senior vice president of global servicing and strategy, Sotheby’s International Realty. “What we’re witnessing in luxury real estate isn’t just a trend—it’s a fundamental redefinition of value. This experiential revolution transcends cultural boundaries, with buyers willing to pay substantial premiums for properties that offer exceptional features that reflect their lifestyles.”
This is backed up by findings in the 23rd edition of the annual Luxury Study, released in January 2025 by Bain & Company and Fondazione Altagamma, the trade association of Italian luxury goods manufacturers. According to the report, despite a slight decrease of 1% to 3% in overall luxury spending in 2024, which totaled €1.48 trillion globally, compared to the year before, “luxury experiences maintained faster-than-average growth as consumers continued to move their spending to travel and social events.” Looking ahead, the study’s research “suggests a slightly improving context throughout 2025… though this is highly dependent on the unfolding macroeconomic scenarios in key regions. Looking toward 2030, the market will likely embark on a long-term positive trajectory, with a growing addressable consumer base.”
Across each of the following markets, we observe distinct patterns in how luxury property and goods evolve together. In some regions, real estate investment precedes retail growth, while in others, established luxury experiences attract wealthy property buyers, demonstrating how these twin markets reflect and reinforce local wealth creation.
“ LUXURY SPENDING HAS SHOWN REMARKABLE STABILITY THIS YEAR DESPITE MACROECONOMIC UNCERTAINTY, LARGELY DRIVEN BY CONSUMERS’ APPETITE FOR LUXURY EXPERIENCES
”
Claudia D’Arpizio, Bain & Company partner
Top 'passion investments' made by luxury homeowners
Source: 2025 Mid-Year Sotheby’s International Realty agent survey
Art
Cars
Wine
Jewelry
Creating sanctuaries in Saudi Arabia
In Saudi Arabia, the phrase “giga-project” is finding its way into real estate conversations as new urban and resort developments with the potential to change the concept of luxury living take shape. As recently as 10 years ago, luxury properties in Saudi Arabia had few amenities, says Erick Knaider, managing partner, Saudi Arabia Sotheby’s International Realty. “But with the country opening up and the Saudi Vision 2030 initiative, coupled with an inflow of executives and foreign companies, demand for upscale developments with amenities has been on the rise.” Saudi Vision 2030 is a multi-year blueprint to diversify the economy and create a dynamic environment for both local and international investors. Now in its second phase, it has sparked a number of other giga-projects.
A massive new development at Diriyah, near the capital, Riyadh, is ushering in a fresh understanding of urban luxury. “This project is not just a building,” Knaider explains. With state-of-the-art infrastructure, branded and non-branded high-end residences, commercial spaces, restaurants, schools and universities, it is basically a city within a city.
“You never need to leave unless you’re going to the airport,” Knaider says. “Even the non-branded residential components are built to a completely different standard. Every brand under the sun will be there, whether it’s Ritz-Carlton, Raffles, Baccarat or Corinthia residences. Even Aman is setting up a development.”
According to Knaider, wealthy Saudis are familiar with the assurance of white-glove service and the superior quality a brand delivers. High-net-worth consumers bring similar expectations to luxury goods. A diversified economy is one aspect of the Saudi Vision 2030 initiative that “has led to a rise in luxury retail spaces and increased opportunities for global luxury brands to enter the Saudi Arabia market,” according to a report published in December 2024 by Ken Research, a global market intelligence consultancy.
Just off Saudi Arabia’s west coast, a massive development called the Red Sea Project is anticipated to increase tourism and make Saudi Arabia a major global destination by 2030. Informed by a deep commitment to actively restoring and enhancing vital ecosystems, the project encompasses an archipelago of more than 90 islands, 75% of which will remain untouched. When complete, this giga-project will comprise 50 resorts. It is, according to Knaider, “a one-of-a-kind development. Nowhere else in the world is a development of this scale being built that considers sustainability and regenerative tourism,” he says. “It’s basically compiling what you’ve got in St. Barts, the Seychelles and the Maldives and putting them all in one destination.”
The initial five resorts are completed, with an additional 11 anticipated in 2025. Residential offerings are expansive, diverse and inventive, ranging from eco-lodges chiseled into ancient mountain faces to stainless-steel overwater pods that reflect the sky and sea. The aesthetic merges sustainable, futuristic design with Saudi heritage and hospitality. The cost of luxury properties in these resorts ranges from US$1.4 million to US$110 million, Knaider says.
International and domestic buyers are already showing interest. The project includes an airport that provides easy access to the Middle East, Asia, Europe and the Americas. “Early sales have exceeded expectations, and the Red Sea is quickly becoming one of the most sought-after destinations in the region,” Knaider says.
A four-bedroom waterside villa at Four Seasons Private Residences on Shura Island with expansive views of the Red Sea.
Saudi Arabia Sotheby’s International Realty
Snapshot of Saudi Arabia (US$)
Source: Saudi Arabia Sotheby’s International Realty
Starting price for luxury homes
Starting price for super-luxury homes
This four-bedroom standalone villa is perched on a hill in Siolim in North Goa, India.
India Sotheby’s International Realty
Snapshot of India (US$)
Source: India Sotheby’s International Realty
Starting price for luxury homes
Starting price for super-luxury homes
An abundance of luxury in India
With the world’s fifth largest economy, growing incomes and a youthful population, India is becoming an increasingly important part of the global luxury landscape, according to a report by INSEAD Knowledge, the research arm of business school INSEAD, published in January 2025. India’s luxury goods market was worth an estimated US$17 billion in 2024, with watches and jewelry comprising the largest segment. This figure is anticipated to at least triple by 2030.
Real estate appears to be pursuing a similar trajectory, as demand for high-end properties has surged in the past two years. In 2024, the luxury real estate market was valued at approximately US$45 billion and is projected to reach US$105 billion by 2030, according to a report released in January 2025 by market research company MarkNtel Advisors. “The Indian economy is one of the fastest growing in the world and a buoyant capital market, and tech founders are cashing in on the equity added in 2024,” explains Akash Puri, director of international business, India Sotheby’s International Realty.
“Luxury living in India is characterized by prime locations, expansive layouts and premium amenities,” Puri says. A key trend for 2025 will be the growing demand for trophy and bespoke luxury assets, particularly spacious farmhouses and gated villas in hill and beach destinations.
Areas that consistently record the highest prices per square foot include Lutyens’ Delhi, an exclusive enclave in New Delhi, the capital, planned by the British architect Edwin Lutyens between 1912 and 1932. The neighborhood is synonymous with luxury and is home to the official residence of the country’s president and many other government buildings. Elite buyers in Delhi also look to the blend of heritage charm and modern amenities offered by Jor Bagh and Golf Links (the Delhi Golf Club is nearby). Two other neighborhoods renowned for upscale residences, Vasant Vihar and Shanti Niketan, are popular among diplomats and expatriates.
According to UBS’s 2024 Billionaire Ambitions Report, the country’s richest people have seen a staggering 42% surge in their collective wealth in recent years. Over the past decade, India’s billionaire count has more than doubled—to 185—and their collective wealth has jumped by 263% to US$905.6 billion.
In addition to New Delhi, several cities are experiencing steady demand, Puri says. The most prominent is Mumbai, the country’s wealthiest city and its financial capital. Demand for luxury developments is anticipated to remain stable in the tech hub of Bengaluru (formerly known as Bangalore).
Upscale homebuyers are seeking more than prime locations. According to Puri, luxury buyer preferences in India include amenities such as advanced security systems, home automation and wellness facilities. Another draw is access to open green spaces as well as a growing emphasis on eco-friendly designs and energy efficiency. As always, finding a residence that offers a blend of privacy and community is also a key consideration for wealthy buyers.
Discovering the beauty of Puerto Rico
When Puerto Rico Sotheby’s International Realty opened its doors in 2012, the highest sale on the island was just over US$2 million. In 2021, by contrast, the office set a new record for the island with a US$30 million waterfront property in Dorado Beach, a Ritz-Carlton Reserve. In 2024, the company achieved the sale of a US$13.4 million penthouse in Condado Beach, San Juan, and set a new record for the area. This aligns with growth in the luxury goods market on the island, with revenue from this industry forecasted to reach US$533.44 million in 2025, and grow annually by 3.06%, according to a September 2024 report by Statista Market Insights.
Margaret Pena Juvelier, founder and president, Puerto Rico Sotheby’s International Realty, explains the island’s growing appeal. “Everyone speaks both Spanish and English, which is wonderful. It’s dollar-based. It’s U.S.-based. All the federal laws apply here, so it’s very safe. And we have everything: arts, culture, a ballet company, a symphony orchestra. Because of all that, it is a much more interesting island. We had an exceptional 2024, having surpassed our volume for 2023 by the third quarter. In the first quarter of 2025, we had 19 transactions under contract. We are seeing strength and buoyancy in the luxury property market, and its scope has grown tremendously in terms of both locations and buyer profiles.”
The luxury property market begins at around US$2 million and climbs to above US$40 million, Juvelier says. “I think real estate developers’ and buyers’ expectations have evolved in the last 10 to 15 years. We have seen broader demand and expansion of where on the island people would consider living.”
In addition to traditional resorts such as the Ritz-Carlton at Dorado Beach or the St. Regis at Bahia Beach, buyers are looking further afield. “Some are choosing what to buy based on lifestyle,” says Juvelier, pointing to a US$6 million custom-built house on a horse farm in a mountain setting with water views. Ten years ago, she says, “you would never have seen anyone considering something outside of a traditional gated resort.”
Historically, U.S. buyers have dominated luxury sales, largely thanks to tax benefits and easy access. Now, Juvelier says, Puerto Rico is becoming an international destination both for vacation-home buyers and a growing number of others searching for long-term residences. Plans for several new communities under development will cater to both markets.
Moncayo, on the east coast of the island near Puerto del Rey, a boater haven with the Caribbean’s largest marina, will consist of a town center, a 400-acre nature preserve, a 100-acre organic farm, a golf course and a private club, in addition to villas and private residences from Auberge Resorts. Also being planned is another mega development, Esencia, on more than 2,000 acres on the island’s west coast. Plans call for two golf courses, an equestrian center and a bilingual K-12 school. The plan will be implemented in five phases, with the first expected to be completed three years after starting construction.
A rendered interior view of one of two new properties being constructed for Haven the Residences in Condado Beach, Puerto Rico.
Puerto Rico Sotheby’s International Realty
Snapshot of Puerto Rico (US$)
Source: Puerto Rico Sotheby’s International Realty
Starting price for luxury homes
Starting price for super-luxury homes
Utah’s upscale side
When residential sales of US$15 million are no longer the exception and US$2 million is an entree to the upscale market, a region’s luxury status is unquestionable. Since January 2025, there have been 15 sales over US$15 million in Utah, a record for the state, according to Kerry Oman, global real estate advisor, Summit Sotheby’s International Realty. Compare that to 2024, when there were only 18 transactions of more than US$15 million for the entire year.
The most expensive sale as of April 2025 was a home that was listed for US$32 million at the Colony at White Pine Canyon, one of Park City’s highest-priced neighborhoods; Michael LaPay, global real estate advisor, Summit Sotheby’s International Realty, worked with the buyers.
Ultra-luxury in Utah, especially Park City, takes the concept of amenities to a new level with private ski lifts, climbing walls, indoor sports courts, extensive wellness features and the odd helipad. Extensive compounds can sometimes exceed 70,000 square feet of interior space. One of Oman’s current listings, priced at US$35 million, features two bunkrooms (à la Swiss Family Robinson), a replica of Disneyland’s famed Enchanted Tiki Room bar and a tunnel connecting the main house to a massive pool barn.
This modern estate in Salt Lake City, Utah, perched above the Salt Lake Valley basin, is a geometric feat of glass and steel.
Summit Sotheby’s International Realty
Snapshot of Utah (US$)
Source: Summit Sotheby’s International Realty
Starting price for luxury homes
Starting price for super-luxury homes
Oman estimates that the average price of a luxury property in the Salt Lake Valley is now US$3 million. From March 2024 to March 2025, there were 124 sales between US$2 million and US$3 million in the city and nearby suburbs, a 53% year-over-year increase. During the same period, 39 homes sold for over US$3 million and seven for over US$5 million, with US$7.5 million being the highest price.
Just before the end of 2024, a US$65 million chalet in one of Deer Valley’s most exclusive neighborhoods, Deer Crest, sold within four days, Oman says. In nearby Park City, US$10 million is the threshold for the upscale market, and inventory is anticipated to grow as an extensive expansion of Deer Valley’s east side continues. However, ski-in/ski-out gated communities such as the Colony at White Pine Canyon and Deer Crest remain the prime luxury locations, Oman adds.
Park City might reign as the premier upscale area, but Utah luxury covers a broad sweep of land between the Oquirrh and Wasatch Mountains along the Salt Lake Valley. In addition to Salt Lake City’s traditional luxury addresses along the East Bench, Federal Heights, the Avenues and Holladay, upscale homes and new luxury neighborhoods can be found in Draper, Herriman and Alpine.
What brings buyers to Utah? Outside observers often attribute the growth of luxury property in Salt Lake City to an influx of tech money from entrepreneurs and companies such as Adobe, Ancestry, Clearlink, Qualtrics, Vivint and others. In recent years, parts of Salt Lake Valley have been dubbed Silicon Slopes. Oman recently listed a US$17 million European-style estate in the Provo-Orem area that is the former home of Bruce Bastian, one of Utah’s original tech legends, who founded early text-editing software firm WordPerfect.
But the state’s appeal stretches beyond the tech industry, according to Oman. “Utah has a tremendous economy, and people are coming here for diverse reasons,” he says. These include the cost of homes compared to other markets, ease of access, year-round recreation, culture, the arts, education and access to excellent healthcare. “It’s certainly driven by a lot of wealthier C-suite buyers, but I also see many doctors, researchers, biomedical engineers and individuals with manufacturing and construction backgrounds,” he adds. In the 2000s, Utah became a top location for industrial banks and a growing financial services sector continues to attract newcomers.
Known for its beautiful mountain backdrop, Salt Lake City in Utah was among the cities highlighted in Henley & Partners USA Wealth Report 2024 as a “future wealth hub”—a distinction it earned through its reputation as one of America’s “least-stressed city,” with lifestyles centered around an abundance of ways to play outdoors, from skiing and riding to fly-fishing, biking and rock climbing. It is rising in popularity as a base for tech and financial start-ups.
“Utah is a great place to raise families,” says Oman. “It’s driven not so much by the types of jobs people might have but by the lifestyle they can have here. One of the biggest feeder markets are people with ties to Utah.” California has always been a significant state for incoming residents, along with Arizona, Texas and the Pacific Northwest. Now, Utah’s pull extends to Florida and New York. “And then it spills over to all the other states,” says Oman.
Luxury revival in San Francisco
Not so long ago, reports from San Francisco, California, detailed the flight of retailers from the downtown area. Today, previously vacant stores are being occupied by brands that cater to the ultra-wealthy, transforming Union Square into a premier destination where shopping by appointment and prime European retailers are the norm, according to a February 2025 report from real estate data company CoStar.
It’s not just high-end retailers that have their sights on the city. An April 2025 report from Bloomberg, among others, shows growing interest and purchases of commercial properties from a range of big names, including Golden State Warriors’ star Stephen Curry, Google’s Sergey Brin and well-capitalized investment groups. On the residential side, agents are seeing growing demand for ultra-high-end properties.
“There is renewed confidence and momentum in San Francisco, particularly at the top end of the market,” says Neill Bassi, global real estate advisor, Sotheby’s International Realty - San Francisco Brokerage. “One of the things that defines San Francisco real estate is that it’s a momentum market, energized by the belief that tomorrow is going to be better than yesterday. There was a little bit of a lull for a short time, but if you ask anyone who’s buying today, their confidence is ultra-high.”
Bassi specializes in single-family homes within the city proper, where US$7 million to US$8 million is the threshold for luxury and the ultra-high market starts at or above US$20 million. “In 2024, we had more sales over US$20 million recorded in a single calendar year than ever before,” he says. A transaction led by Bassi, a US$30 million estate in Sea Cliff, has already set a record this year, as of April 2025. “If you look at the sales north of US$20 million last year, you’ll see some that are on double lots, fully renovated within the last 10 years or sooner, with big views. Then you’ll see others that are long-term, multi-year renovation projects in a once-in-a-generation location.”
Buyers today include former residents of the city who are returning after a hiatus of four or five years along with newcomers drawn by the city’s tech industry. Unlike the last surge of newcomers, who were drawn to Silicon Valley, those new to the city are apt to look north to Presidio Heights and Pacific Heights.
San Francisco is a place to create wealth and also to live a full, rich life, Bassi says. Education, proximity to top universities, access to cultural amenities like the opera and ballet, innovative tech ecosystems and healthcare are all essentials. “For the ultra-high-net-worth client, there is a real value proposition to commit to raising a family here,” he adds.
“ THERE IS RENEWED CONFIDENCE AND MOMENTUM IN SAN FRANCISCO, PARTICULARLY AT THE TOP END OF THE MARKET
”
Neill Bassi, global real estate advisor, Sotheby’s International Realty - San Francisco Brokerage
This sophisticated 1930s home in San Francisco, California, has elegant wood paneling and the dining room is crowned by a dramatic ceiling.
Sotheby’s International Realty - San Francisco Brokerage
Snapshot of San Francisco (US$)
Source: Sotheby’s International Realty - San Francisco Brokerage
Starting price for luxury homes
Starting price for super-luxury homes
Property is still the ultimate luxury
At a time when demand for some luxury goods is softening, real estate tells a different story. In San Francisco, luxury brands are leading a revival of the high-end market. In Puerto Rico, new resorts are bringing innovative concepts that bridge lifestyles—from hotels to residences—and in Saudi Arabia, inspired urban planning is showcasing new prototypes for luxury. India’s thriving economy is driving demand for upscale properties, and in Utah, luxury is coming down from the peaks to a broad sweep of valley extending from Salt Lake City. All these changes not only show where new hubs for luxury real estate are emerging or reviving, but they also provide clues to their future evolution.
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