Luxury Outlook 2026: global resilience and Monaco's enduring appeal

Analysis of new dynamics in luxury real estate

Published by Sotheby's International Realty, Luxury Outlook 2026 offers an in-depth analysis of the forces reshaping the global luxury property market. In an economic environment still marked by uncertainty, the luxury segment once again confirms its uniqueness: it evolves according to its own codes, driven by an international clientele, sustained wealth creation and a long-term heritage vision.

Through its global network and the expertise of its local agencies, Sotheby's International Realty deciphers the major trends that will shape 2026: changes in supply, new buyer profiles, strategic trade-offs and emerging priorities. These insights are particularly relevant in an exceptional market such as Monaco.

^{A luxury penthouse at the Four Seasons Private Residences in Abu Dhabi, United Arab Emirates, broke records when it sold for US$54.5 million in 2025. Source : Luxury Outlook 2026}

^{Photo credit: Abu Dhabi Sotheby’s International Realty}

Luxury real estate in 2026: a market apart, more than ever

While traditional residential property remains sensitive to interest rates, monetary policy and local constraints, luxury property continues to grow in both value and transaction volume. The report highlights a now well-established reality: there are currently two distinct markets.

On the one hand, a more cyclical general market. On the other, a high-end market driven by buyers with very high purchasing power, often international, mobile and less exposed to macroeconomic pressures. This segmentation, which can be observed in sectors such as finance and premium air travel, is based on a solid economic foundation and continuous wealth creation.

A return to balance: towards a healthier market

Good news for market players: supply levels in the luxury property market have returned to near pre-pandemic standards. This rebalancing is promoting greater fluidity in transactions, with more choice for buyers and more sustainable conditions for sellers.

In this context, the report highlights the importance of the ‘first mover advantage’. Sellers who adopt a realistic pricing strategy from the outset, in line with new market dynamics, maximise their chances of closing deals quickly. Conversely, buyers who are able to position themselves quickly on rare properties continue to capture unique opportunities, as evidenced by certain landmark transactions on international markets.

^{In Aspen, Colorado, a vast 74-acre estate featuring a carefully designed residence and a private lake is on the market for US$300 million. Source : Luxury Outlook 2026}

^{Photo credit: Aspen Snowmass Sotheby’s International Realty}

Monaco: stability, scarcity and safe haven

In this global landscape, Monaco retains a unique status. An ultra-secure, politically stable and fiscally attractive territory, the Principality stands out as a natural safe haven for major international fortunes.

Like other major luxury capitals, the Monegasque market benefits from sustained demand for turnkey properties, renovated with high-end amenities, offering personalised services and an incomparable quality of life. The scarcity of land, combined with constant demand, gives Monaco's prestigious properties exceptional resilience.

The report also highlights a notable shift in purchasing motivations: beyond financial performance, buyers are now looking for sustainable, secure, flexible and transferable living spaces. This comprehensive approach to property investment puts Monaco in a strong position, despite a structurally limited supply.

^{New district in Monaco - built on the sea in 2024, this new eco-neighborhood will feature flats (including Le Renzo building), private villas, green spaces and innovative amenities.}

^{Photo credit: Monte-Carlo Sotheby’s International Realty}

New expectations of affluent buyers

Luxury Outlook 2026 reveals a profound shift in priorities in the luxury property market. Security, privacy and autonomy, particularly in terms of energy, are becoming key criteria in the design and selection of luxury residences.

Another strong trend is the rise of multigenerational housing. Properties are no longer seen solely as residences, but as family assets that can evolve over time, accommodate several generations and form part of a long-term inheritance strategy.

In Monaco, this vision resonates particularly strongly, with clients who are mindful of the long-term value of their investment, resale value and service excellence.

^{Property in Manhattan, such as this US$10.25 million apartment in Chelsea, is particularly appealing to buyers from overseas.}

^{Photo credit: Sotheby’s International Realty - East Side Manhattan Brokerage}

A comprehensive overview for strategic decisions

Thanks to its international network, Sotheby's International Realty has a cross-disciplinary view of capital flows and demand dynamics, from North America to the Middle East. This global perspective, combined with in-depth local expertise, enables Monte-Carlo Sotheby’s International Realty to support its clients in making informed decisions that are aligned with both their wealth management objectives and their lifestyle.

In Monaco, each neighbourhood now has its own distinct identity, although the Carré d'Or and Monte Carlo remain major centres of attraction. Today's buyers are exploring the entire Principality, seeking a balance between location, amenities and long-term vision.

Luxury real estate: above all, a lifestyle choice

More than just an investment, luxury real estate embodies a way of life. Each purchase is an expression of personal, family and emotional aspirations, shaped by the experience, services and quality of life offered by an exceptional destination such as Monaco.

^{The luxury housing market in central London—where this three-bedroom apartment is located, in the OWO Residences by Raffles—is bucking the trend of volatility seen in other locations.}

^{Photo credit: United Kingdom Sotheby’s International Realty}

Luxury Outlook 2026 confirms a fundamental trend: in a changing world, luxury remains a benchmark. And Monaco, more than ever, stands out as one of its most solid anchors.

Contact Monte-Carlo Sotheby’s International Realty for assistance with your project to purchase or rent exceptional properties in the heart of the Principality.

Read the full Luxury Outlook 2026 report