Written by Liv Baggen, Head of Global Sales
The luxury property market is evolving rapidly, driven by global urbanization, population growth, wealth migration, and generational wealth distribution. For investors and developers, staying attuned to these global trends is essential for identifying opportunities and adapting to a dynamic market. From urban expansion to shifting consumer behaviors, here’s how global forces are haping the future of real estate.
Population Growth and Urbanization
The world’s population surpassed 8 billion in 2022 and is projected to reach 10 billion by 2055, with over half residing in cities. Asia, led by China and India, is at the forefront of this urbanization, with Delhi projected to become the world’s largest city by 2030. As cities grow, significant infrastructure investments are needed to maintain liveability, influencing global real estate investments.
Asia’s economic momentum is reshaping the global wealth landscape, with countries like China, India, Singapore, and Vietnam seeing a surge in high-net-worth populations. This growth positions Asia as a key driver of future real estate demand.
Wealth Migration and Investment Locations
Global wealth is rising, creating new self-made millionaires, especially in emerging economies. However, instability in regions like the UK, China, and India has spurred wealth migration. Millionaires are seeking stable destinations such as the US, Australia, and Singapore, while the UAE has emerged as a hub for affluent investors due to its tax advantages and quality of life.
Generational Wealth Transfer and Changing Preferences
In the next 25 years, Baby Boomers are set to transfer trillions of dollars to Millennials and Gen Z, generations with distinct preferences. Younger buyers prioritize experiences, flexibility, and smart home technology, favoring city living with access to services. Developers must adapt by embracing digital-first strategies and offering properties aligned with these preferences.
The real estate industry is being reshaped by population growth, wealth migration, and generational shifts. To stay competitive, professionals must leverage technologies like artificial intelligence to better understand client needs and provide tailored solutions.
Real estate experts who adapt to these trends and anticipate client demands will thrive in a rapidly transforming market. The future belongs to globally minded, tech-savvy buyers seeking unique, experience-driven properties, offering exciting opportunities for those ready to meet their needs.
