Stock-market wealth, a US$54 trillion top 1%, younger buyers and lifestyle-led demand are keeping prime property strong worldwide. Here is what is driving it.
Economic uncertainty has dominated the news in 2026. Yet the top of the property market has barely flinched. According to the 2026 Mid-Year Premium Outlook Report, homes priced at US$10 million and above beat expectations in 2025 and are on track to keep going. Premium real estate's most remarkable trait, the report says, may be its indifference to global headlines.
Here are the five forces behind that strength.
1. A historic wealth effect
The S&P 500 climbed about 80% from early 2023 to 2025. The net worth of America's top 1% hit US$54 trillion. Worldwide, there are now 41.3 million high net worth individuals and more than 500,000 ultra high net worth individuals worth over US$30 million each. That wealth is being converted into homes, often paid for in cash.
2. More buyers, steady price growth
In the report's survey, 55% of agents selling US$10 million-plus homes saw more buyers over the past year, with average price gains of 5%. The markets show it:
- San Francisco: sales of homes priced at US$7.5 million and up rose 84% in 2025, driven by the AI boom.
- Los Angeles: sales of US$5 million-plus homes rose 30%, despite the city's "mansion tax."
- London: 2025 beat 2024 on both volume and price, despite predictions of an exodus.
- India: prime values rose more than 40% over three years.
- Sydney and Singapore: steady gains, tight supply and safe-haven demand.
3. A younger generation of buyers
The great wealth transfer is under way. Among agents in the US$5 million-plus bracket, 73% reported more millennial buyers. In London, the prime buyer is increasingly in their 30s or early 40s. These buyers are more influenced by social media and more likely to make lifestyle purchases than pure investments.
4. Lifestyle over status
In the agent survey, 62% said lifestyle has become more important to buyers, ahead of taxes (60%), economic stability (53%) and political stability (49%). Buyers want turnkey homes, privacy, wellness and walkable locations. Branded residences, homes with the services of a luxury hotel, remain one of the hottest trends.
5. A more mobile, global buyer
Buyers are casting a wider net. Americans are "more open to different places than in the past," says Philip A. White Jr. Markets like Cabo San Lucas, Tokyo and Vietnam are gaining ground. Travel is a leading signal: where the wealthy holiday today is often where they buy tomorrow.
The takeaway
The prime market is not immune to uncertainty, but it is resilient to it. Scarce, high-quality homes in desirable locations continue to sell, and quality is outperforming quantity. For buyers and sellers alike, the edge comes from local expertise combined with a global network.
