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2025 Luxury Real Estate Trends: What’s Hot and What’s Not

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Managing Real Estate Broker with Christopher Shearer Real Estate CA DRE #02062657

2025 Luxury Real Estate Trends: What’s Hot and What’s Not

The luxury real estate market has always been driven by sophistication, exclusivity, and innovation. However, as we move into 2025, new trends are shaping the way buyers and investors approach high-end properties. From eco-friendly designs to the rise of tech-integrated homes, the landscape of luxury real estate is evolving. Let’s dive into the biggest trends that are expected to dominate in 2025 and what’s starting to fade out.


  1. Sustainability Takes the Spotlight

In recent years, sustainability has become a key consideration for luxury home buyers. This trend is not just a passing phase—it’s a movement that’s gaining momentum and likely to stay well into 2025. Buyers are increasingly looking for eco-friendly features such as solar panels, energy-efficient appliances, and sustainable building materials. Homes with LEED certification or similar green building credentials are now seen as more desirable, and developers are meeting this demand by constructing homes that minimize their environmental impact.

According to a report from The Wall Street Journal, eco-friendly properties are commanding higher prices as affluent buyers recognize the long-term value and cost savings they offer. Plus, luxury homebuilders are tapping into natural, organic materials, creating living spaces that feel both luxurious and environmentally responsible.


  1. Smart Homes and Technology Integration

The demand for smart home technology has never been stronger. From voice-controlled systems to AI-powered security features, luxury buyers are seeking homes equipped with cutting-edge technology. In 2025, expect to see more integrated systems that allow homeowners to control everything from lighting and temperature to security and entertainment, all from a mobile device or tablet.

One significant trend in luxury homes is the rise of smart kitchens. High-end appliances are increasingly being designed with smart capabilities, such as refrigerators that track groceries or ovens that can be preheated remotely. Homebuyers are also interested in advanced home security features like facial recognition and biometric access systems, offering a blend of convenience and safety.

For more insights on smart home integration, check out Forbes’ guide on luxury smart home features.


  1. Minimalist, Open-Concept Interiors

In 2025, the trend of minimalist and open-concept interiors is still going strong, but with a twist. While open floor plans remain popular, there’s an increasing shift toward designing spaces that feel more intimate, cozy, and functional. This is especially true in living and dining areas, where streamlined furniture and clean lines dominate.

Luxury buyers are looking for homes that offer flexible, adaptable spaces—rooms that can transform based on the homeowner’s needs. Think open-concept kitchens that flow into dining rooms and large windows that bring natural light into living areas. However, expect a move away from the ultra-minimalist, “stark” designs of previous years. Today’s high-end buyers are gravitating toward interiors that feel polished but lived-in, with a focus on comfortable luxury.


  1. Wellness and Health-Focused Amenities

In 2025, luxury buyers are prioritizing wellness and health more than ever before. The demand for home spas, personal fitness centers, and indoor/outdoor pools is growing as part of a larger trend toward creating spaces that promote physical and mental well-being. Think yoga studios, meditation rooms, or homes with dedicated spaces for homeopathy or wellness treatments.

According to Business Insider, luxury homes are increasingly incorporating "wellness" elements into their designs, such as air purification systems, water filtration, and circadian lighting that adjusts to natural sunlight patterns. Homebuyers are looking for properties that not only provide a lavish lifestyle but also enhance their quality of life in terms of health.


  1. Sought-After Locations: Suburban Retreats and Remote Escapes

The pandemic reshaped how people view urban living, and 2025 is no exception. While many are returning to city life, there is still strong demand for remote, private retreats. Luxury buyers are increasingly looking for homes outside traditional metropolitan areas, seeking larger plots of land, seclusion, and the ability to enjoy nature. From mountain estates to lakeside properties, the focus is on privacy, quiet, and luxurious spaces to escape the hustle and bustle.

The demand for second homes is also on the rise, with many affluent buyers seeking multiple properties that allow them to easily transition between urban and rural lifestyles. Forbes recently reported on the surge in luxury second-home sales, highlighting that buyers are increasingly seeking peaceful escapes that also provide ample space for family gatherings and personal enjoyment.


  1. What’s Fading Out: Over-the-Top Opulence

In recent years, over-the-top luxury—think gilded ceilings, marble walls, and oversized chandeliers—has been a hallmark of high-end properties. But in 2025, the tide is shifting toward more understated elegance. Buyers are now looking for homes that feel contemporary, comfortable, and timeless, rather than overtly flashy or opulent.

Many buyers are turning away from ostentatious displays of wealth, preferring homes that exude quiet luxury. This shift is also reflected in the growing popularity of sustainable design and minimalist interiors. Gone are the days when homes had to be dripping with gold and crystal. Today’s luxury buyer values craftsmanship, artful design, and quality over extravagant displays of wealth.


  1. The Rise of Private, Customizable Spaces

Finally, one of the hottest trends in luxury real estate for 2025 is the rise of private, customizable spaces within homes. Whether it’s a bespoke wine cellar, a private screening room, or a custom-designed library, luxury buyers are seeking unique, tailored features that reflect their personal tastes and needs. Customization is key, with buyers expecting the freedom to design spaces that suit their lifestyle perfectly.

If you’re curious about the latest in private luxury spaces, take a look at this article on customizable home features from Architectural Digest.


Conclusion

The luxury real estate market is evolving rapidly, with trends in sustainability, technology, wellness, and design shaping the properties of 2025. Buyers today are looking for homes that offer more than just a place to live—they want spaces that reflect their values, provide comfort, and integrate seamlessly into their lifestyles. If you're planning to buy or sell luxury real estate in the coming years, it’s essential to stay ahead of these trends to remain competitive in this ever-changing market.


Sources:

  1. Eco-Friendly Properties Commanding Higher Prices: https://www.wsj.com/articles/why-sustainable-homes-are-increasingly-commanding-premiums-11648817600
  2. Forbes- Guide on Luxury Smart Home Features: https://www.forbes.com/sites/forbestechcouncil/2023/05/18/five-luxury-smart-home-features-you-can-expect-in-2023/
  3. Business Insider- Wellness Features in Luxury Homes: https://www.businessinsider.com/luxury-home-wellness-features-trend-health-homes-spas-gym-2023-9
  4. Forbes- The Rise of Luxury Second-Home Market:https://www.forbes.com/sites/forbesrealestatecouncil/2023/01/11/the-rise-of-the-luxury-second-home-market-in-2023/
  5. Architectural Digest- Customizable Home Features: https://www.architecturaldigest.com/story/customizable-home-designs
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Show All Comments Sort:
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Christopher-I wonder how all the time so many of us spent in our homes during Covid altered how we want to live in our homes. I love the sleeker lines, not stark minimalist, but not so fussy and elaborate as well

Feb 04, 2025 06:07 AM
Christopher Shearer MBA DRE #02062657

Kathy StreibHi Kathy! I completely agree—it’s interesting to think about how so much time spent at home during COVID has influenced our preferences. People seemed to lean toward a balance of comfort and simplicity, like you mentioned. Sleeker lines offer a sense of calm without being too rigid, and they still allow for personality to shine through. It feels like we're craving a more functional, relaxed space that still feels beautiful but isn't overly complex. Has this shift impacted the way you stage or redesign homes for your clients?

Feb 04, 2025 11:59 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Excellent post! I wonder how well the smart technology will age? Guess it can be updated, or will it become the "home intercom" systems we seen in homes from the 1970's?

Feb 04, 2025 06:11 AM
Christopher Shearer MBA DRE #02062657

Doug RogersHey Doug, great point! Smart technology definitely has the potential to evolve, but it’s hard to say how well it’ll hold up long-term. Like you mentioned, it could end up like those old home intercoms that we now look at with a bit of nostalgia (or amusement!). The difference now is that many smart home devices can be updated or replaced easily, so they might have a longer lifespan than older tech. It’ll be interesting to see how people adapt as newer systems come out. Do you think smart tech is something that adds long-term value to homes, or is it more of a trendy selling point right now?

Feb 04, 2025 12:01 PM