PRIME Numbers
What the 2026 Sotheby’s International Realty agent survey tells us about the state of luxury property markets worldwide.
The 2026 Sotheby’s International Realty® agent survey is a comprehensive poll of the brand’s luxury real estate agents and franchise owners. For homebuyers and sellers, the survey reveals key factors impacting today’s luxury real estate market—including the extent to which geopolitical uncertainty is exerting an influence around the world, the continuing strength of cross-border demand, and the general steadiness of home prices—allowing them to make informed decisions based on the insights and opinions of the network’s worldwide affiliates and agents.
One of the key findings is the unique nature of the global luxury property market: In 2025, only 51% of homebuyers worldwide purchased a property as their primary residence. The percentage was higher in North America, South/Latin America, Europe and Oceania, but much lower in Asia, Africa/Middle East and the Caribbean.
“Affluent buyers think in terms of property portfolios rather than single homes,” says Philip A. White Jr., president and CEO of Sotheby’s International Realty. “They are often splitting their time between multiple residences. For many Sotheby’s International Realty clients, this isn’t their first home—it’s the second, third or sometimes even the fourth property in their portfolio.”
Second-home ownership accounted for 28% of luxury purchases globally—a significant share that underscores how common multi-property ownership is among affluent buyers. Regional variations were modest, with second-home purchases rising to 34% in Asia and 33% in the Caribbean—but more local markets revealed dramatic patterns.
In Florida, for instance, 54% of luxury purchases were second homes. This concurs with an August 2025 report from wealth intelligence firm Altrata, which identified Miami as the top destination for ultra-high-net-worth individuals (UHNWIs) looking for a second home, followed by New York, London and Los Angeles.1
The agent survey reveals what is driving today's affluent buyers across seven global regions: North America, South/Latin America, the Caribbean, Europe, Africa/Middle East, Asia and Oceania. It also shows where the market is heading in these places—where prices are rising, where they are falling and where competition with foreign buyers is increasing.
“ FOR MANY SOTHEBY’S INTERNATIONAL REALTY CLIENTS, THIS ISN’T THEIR FIRST HOME—IT’S THE SECOND, THIRD OR SOMETIMES EVEN THE FOURTH PROPERTY IN THEIR PORTFOLIO.
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Philip A. White Jr., president and CEO, Sotheby’s International Realty
Luxury properties in San Miguel de Allende, northwest of Mexico City, are sought after as second homes.
San Miguel Sotheby’s International Realty
The main reasons homebuyers are looking to purchase a property
Source: 2026 Sotheby’s International Realty agent survey
Primary Residence
Second home
Investment rental income
Investment capital growth
The motivations of luxury homebuyers
While seeing an appreciation in their home’s value or benefiting from rental income from a second or third property were considerations for many homebuyers, relatively few purchases were driven primarily by such motives. Purchases made mainly for capital growth or rental income each accounted for just 10% of sales on average across the world. However, in certain regions this figure was higher, with homebuyers in Asia and Africa/Middle East more interested in capital growth and many in the Caribbean and South/Latin America seeking properties they could rent out.
Security and privacy were the top priorities among homebuyers, with most agents reporting these factors as growing concerns for their clients. An area’s economic and political stability were also major factors. An area’s local tax structure was a significant driver of interest, with more than half of respondents saying a “favorable tax environment” was a key concern. This was particularly true in Europe and the Caribbean, where at least three-quarters of agents said their clients cited taxes as a motivator in choosing a future home there.
Multigenerational living is also becoming increasingly important in certain regions, including Africa/Middle East, North America, and South/Latin America.
Homebuyer demand is on the rise in Oceania, placing a premium on properties like this apartment overlooking the Swan River in Perth, Western Australia.
Australia Sotheby’s International Realty
Major considerations among homebuyers
Source: 2026 Sotheby’s International Realty agent survey (ranked by importance)
Security and privacy
Economic stability
Political stability
Lifestyle
Favorable tax environment
Work from home capabilities
Climate concerns
Multigenerational living
Economic and political impacts on markets
Sotheby’s International Realty affiliated agents were asked to evaluate factors that had impacted their local markets over the past 12 months and whether those factors had had an overall positive, negative or unchanged effect.
Globally, inflation was identified as the biggest obstacle—apart from in Asia, where responses were evenly split between both positive and negative impacts. This reflects a trend seen across the continent, with The Economist reporting in September 2025 that, apart from in Japan and Bangladesh, “the average rate across the continent’s 10 biggest economies is a tame 1.3%. Consumer prices have fallen outright in China, the biggest of all, and in Thailand. Other Asian economies, including the Philippines, are not far from deflation. Even in inflation-prone India, prices rose by just 1.6% in the year to July 2025, the slowest rate since 2017.”2
Meanwhile, in North America, interest rates were a bigger concern, with just over two-thirds of agents reporting a negative influence on their markets. This view was echoed in the Caribbean and South/Latin America.
However, interest rate changes have had a more positive impact in Oceania and Europe. With the U.S. Federal Reserve cutting benchmark interest rates in September, October and December 2025,3 homebuyers’ concerns could be alleviated somewhat in 2026. According to commentary released in September 2025, the Mortgage Bankers Association in the U.S. forecasts “a 30-year mortgage rate expectation of 6.5% by the end of the year, declining to 6.2% by the end of 2027.”4
Politics was also a significant factor in homebuying choices. More than half of agents in North America, South/Latin America and Oceania said domestic politics was hampering their markets, and the global political situation was having a negative effect on several markets, particularly in North America. Respondents in Asia, the Caribbean and Africa/Middle East were more neutral or upbeat about the impact of both.
Economic and political impacts on luxury markets
Source: 2026 Sotheby’s International Realty agent survey
Most Negative
Most Positive
Most Positive vs. Most Negative
North America
Inflation
Asia
North & South America/Latin America
Domestic geopolitics
Asia
North America
Global geopolitics
Caribbean
Oceania
Tax changes
Caribbean
Caribbean
Inventory levels
Asia
North America
Interest rates
Oceania
North America
Stock market fluctuations
Africa/Middle East
Caribbean & North America
Currency fluctuations
Africa/Middle East
Real estate metrics and transactions
Agents also provided insight into local property market metrics, including the number of homebuyers and home sellers, inventory levels and the number of sales over the past year.
In terms of supply, inventory levels rose around the world, particularly in North and South/Latin America. The Caribbean was the only region where agents reported less inventory.
Homebuyer demand varied widely across the globe, with the biggest boost reported in the Caribbean, followed by Africa/Middle East and Oceania, pointing to a sellers’ market continuing in these locations. Meanwhile, homebuyers had less competition in South/Latin America and in North America.
The number of transactions in luxury property markets also varied widely by region. Sales activity increased in the Caribbean, Asia and Europe, according to agents, while Oceania saw a decrease.
The survey also captured data on home price changes over the past 12 months. Agents in both Africa/Middle East and Asia report double-digit price growth, particularly in Japan, where agents reported 21.4% growth. Dubai also showed exceptional strength in the region.
Properties in Florida, like this one in Sarasota, are hugely popular with both domestic and overseas homebuyers.
Premier Sotheby’s International Realty
“Dubai continues to demonstrate exceptional resilience and growth, with double-digit price appreciation driven by sustained demand for prime and super-prime properties,” says Leigh Borg, executive partner, Dubai Sotheby’s International Realty. “The market has evolved beyond short-term speculation; today’s buyers are long-term investors who see Dubai as a global city of stability, sophistication and increasing opportunity. Recent landmark transactions, including several record-breaking villa and branded residence sales, reflect the depth of wealth entering the market and the continued confidence in Dubai’s luxury real estate sector. As inventory tightens and new launches grow more curated, we expect premium properties to maintain their upward trajectory into 2026.”
In regions where prices decreased, including North America and Europe, the reductions were relatively modest. Oceania showed a larger drop, driven primarily by a 13.1% decline in New Zealand.
Sotheby’s International Realty affiliated agents also provided forecasts for their local housing markets through mid-2026. Agents in several regions said they expected to see property prices grow, including in Oceania, South/Latin America and Europe. Prices in Asia are projected to continue growing, but at a slower pace than in 2025. And in the Caribbean and North America, agents anticipated a small decline.
Change in market indicators over the past 12 months
Source: 2026 Sotheby’s International Realty agent survey
Luxury home price growth
Source: 2026 Sotheby’s International Realty agent survey
The rise of Millennial homebuyers
Several groups of homebuyers are becoming more active according to the survey, particularly Millennials (born 1981-96) and foreign buyers looking for a “golden visa” or other residency benefits.
The biggest jumps in the number of Millennial buyers of luxury properties were in the Caribbean, where 75% of agents noted an increase, followed by South/Latin America (64%) and Asia (59%). “As global economies shift, we are continuing to see an influx of new primary and secondary homebuyers choosing Puerto Rico,” says Oriana Juvelier, vice president and broker, Puerto Rico Sotheby’s International Realty. “We are increasingly seeing that HNWIs in particular are drawn to the wellness-inspired quality of life in warmer climates, such as we have here in Puerto Rico. Furthermore, business incentives are more important than ever due to rising costs of living and doing business in the U.S. This is driving Millennials, many of whom are for the first time considering their family’s long-term prospects, to choose locations that are both culturally aligned and tax-favorable for building family wealth.”
Millennials are also becoming more active in North America, primarily in the U.S., according to 44% of agents there. This concurs with findings in the 2025 Home Buyers and Sellers Generational Trends Report, released by the National Association of REALTORS® in April 2025, which found that Millennials made up 29% of recent homebuyers in the U.S., second only to Baby Boomers (born 1946-64), who made up 42%.5
The Caribbean islands, meanwhile, remain a hotspot for those looking for so-called golden visas—citizenship and residency benefits given to foreigners who make a sizable investment in a country’s economy. A large majority (83%) of agents working in the region reported an increase in this type of buyer, compared with a global average of nearly half. The lure of Oceania for foreign buyers is also above average, with more than half of agents noting an uptick.
According to a September 2025 report in the Guardian,6 since the requirements for New Zealand’s Active Investor Plus visa were relaxed in April 2025—lowering investment thresholds and reducing the time applicants must spend in the country to establish residency—the number of foreigners who have applied has tripled, with most coming from the U.S. and China.
Luxury homebuyers are increasingly drawn to properties with wellness facilities, such as this eight-bedroom oceanfront property with an infinity pool in Puerto Rico.
Puerto Rico Sotheby’s International Realty
Change in buyer types
Source: 2026 Sotheby’s International Realty agent survey
Millennials (born 1981-96)
Those looking for “golden visas” or other residency incentives
Older buyers looking for a retirement property
Gen Z (born 1997-2012)
Single women
An increasingly active overseas market
Foreign homebuyers are active all over the world. According to the survey, 82% of agents sold properties to homebuyers from outside their own countries, with Africa/Middle East, Europe and the Caribbean seeing the highest international activity. North America was the outlier, with a little over a third of respondents dealing with overseas purchasers, though this figure rose to 61% in Florida.
Among the agents who sold to both domestic and foreign buyers, a little over one third of their clients were from outside the country. The Caribbean and South/Latin America had the highest proportion, with more than half of buyers coming from abroad, followed by Africa/Middle East and Asia.
While in Africa/Middle East and South/Latin America most agents reported an increase of overseas buyers over the past two years, in other regions agents reported activity consistent with previous years.
Looking specifically at overseas buyers who want to relocate permanently to another country, the survey results show a higher proportion in tropical locations. More than 90% of agents in the Caribbean and roughly 80% from Oceania and South/Latin America noted an increase there, as well as all of the respondents from Africa/Middle East.
Agents outside the U.S. identified American buyers as the dominant overseas buying force in their markets, including across Asia, the Caribbean, Europe and South/Latin America.
In Oceania, however, homebuyers from China were the biggest overseas players. They were also the third most active in the U.S., behind Canadians and British homebuyers. Meanwhile, in Asia, apart from the large American presence, most foreign homebuyers came from other parts of the continent, including Hong Kong, Singapore and Malaysia.
“In many global cities, such as Singapore, London and Hong Kong, governments have introduced policies to curb property price increases—such as additional taxes and purchase restrictions—which have made acquisitions more difficult,” says Sara Grace Takano, global real estate advisor, List Sotheby’s International Realty, Japan. “In contrast, Japan imposes relatively few restrictions on foreign buyers, and the depreciation of the yen has created a strong sense of value. Moreover, Tokyo’s excellent infrastructure, safety and global reputation make it an attractive ‘safe asset’ destination for wealthy individuals and institutional investors worldwide.”
As the survey findings reveal, despite varying regional conditions, luxury real estate markets continue to operate globally with sustained cross-border activity. Homebuyers can use these trends to identify locations that fit their lifestyle preferences and meet their needs. This can help them establish where the best opportunities for their next purchase can be found.
Change in market indicators for foreign buyers
Source: 2026 Sotheby’s International Realty agent survey
More from the report
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