Global Luxury Housing Markets Move Toward Equilibrium In 2026

Luxury housing markets across the globe are moving toward a healthier equilibrium after years of heightened buyer demand, tight inventory and disconnected pricing expectations, according to the Christie’s International Real Estate Global Luxury Perspectives report published on Monday. 

The report states that global luxury markets are becoming more balanced due to stabilizing pricing expectations, resilient buyer demand and easing inventory pressures. In addition, Christie’s International Real Estate publicly debuted its Prime Sentiment Index (PSI), which the firm describes as a forward-looking indicator designed to identify shifts in buyer demand, price expectations and inventory conditions.

According to the report, the composite PSI score for 2026 was 14.4, slightly down from the 15.6 recorded in 2025. Index values above zero signal improving market momentum. 

The slight decline in the composite PSI score comes as buyer demand has cooled from 37.7 in 2025 to 29.3, while price outlook has edged up from 13.8 to 14.6 and inventory has improved from -26.9 to a reading of -23.2. 

“Demand is normalizing, which we see as evidence of a more balanced market,” Gavin Swartzman, the president of Christie’s International Real Estate, told HousingWire. “Expectations of demand are still in the moderately high range, so it isn’t a frenzied market, it is just a solid market.” 

Demand remains robust

Swartzman noted that while things have calmed from the height of the pandemic housing market, demand still remains robust heading into the second half of 2026. 

“In virtually every market we are still seeing strong demand and, if it is a well-priced property, it’s moving,” Swartzman said. “So, I think that we are seeing a more rational market. When I look at the sentiment in the index, I think people are acting deliberately and with confidence as opposed to being excessively emotional, which is what we saw during the COVID period.” 

Despite the slight decline, Christie’s International Real Estate said the PSI points to a positive outlook for 2026, as the market is expected to moderate in comparison to 2025, but remain strong. According to the report, both supply and demand are moving to a healthier balance and pricing confidence is remaining steady, contributing to the positive outlook for 2026. 

Swartzman added that he believes the uptick in luxury inventory can also be attributed to normalizing market conditions and consumers becoming more accustomed to the current home price and interest rate environment. 

“We had record low interest rates and for a while people were holding back despite things that have would have normally driven them to transact because they were waiting for lower rates,” Swartzman said, “But as people have realized that interest rates are not going back to 2% again, we are starting to see those life events becoming the primary drivers of the market.” 

Conflicts in Middle East may impact stabilization

Although the firm is optimistic about the year ahead, the report acknowledges that the current conflicts in the Middle East may impact the timing of some regional stabilization trends expected in 2026, but the company does not believe the Iran war will have an impact on the markets medium and long-term outlooks. 

“In the short term, the Middle East conflict has injected a whole new variable into the mix, but I don’t think anyone could make a hard and firm prediction right now on the long term as it is still early to tell,” Swartzman said. “If things get resolved quickly, we could still have a very strong second half.” 

In addition to the overall positive outlook, the report also notes some changes in buyer motivation among high-net-worth individuals, which it calls “belonging.” According to the report, these buyers are looking for luxury homes that align with their lifestyle, values and the legacy they wish to create. 

Trends in luxury

For these buyers, the report identified four overarching trends: havens, identity, opportunity and continuity. According to the report, buyers are on the lookout for properties that support resilience, protection and self-sufficiency, allowing them to create their own all-in-one sanctuaries. Buyers are also looking for properties that are defined by personal interests and align their aspirations with practical needs. This means that buyers are looking for unique, curated properties that express their worldview and passions. 

In addition, they also seek locations that offer long-term opportunities for wealth preservation, citizenship and the lifestyle they want. One example of a market pulling buyers for these reasons, according to the report, is Switzerland. However, the report noted that Portugal, Malta, Italy, United Arab Emirates, Greece, New Zealand, Saudi Arabia and Vietnam are among countries becoming more popular among buyers looking for these benefits. In the U.S., the report found that Rhode Island is becoming a destination for “quiet luxury.” In addition, Chicago and Detroit are popular among high-end buyers looking for value, space and long-term potential, while Portland, Oregon, and San Francisco are also ramping up in popularity again.

Swartzman said he was happy to see his adopted home town of the often maligned city of Chicago make this list.

“We are seeing very strong demand here in Chicago and our affiliates in Detroit are also reporting a strong comeback,” Swartzman said. “The whole Midwest is having a moment from major cities like Chicago and Detroit, to secondary recreational markets adjacent to those cities, like Lake Geneva and New Buffalo, that offer great value and amenities.” 

He added that brand affiliates in the Carolinas have also reported strong luxury market growth, making that another region he and his team are watching closely. 

“There are more areas now that are considered luxury,” Swartzman said. “It isn’t just Aspen or Palm Beach and that reflects the lifestyle choices many of these buyers have made — whether that is winter sports in Park City, Utah, or privacy and isolation in some more rural markets.” 

Luxury buyers are also looking at properties more as “legacy assets,” allowing them to create stability across generations, this is especially true for high net worth individuals looking to move their money from cryptocurrency to a more stable asset.

Looking ahead, Swartzman anticipates seeing these trends continue and the luxury market to remain.

“I think the way you see people expressing luxury is changing,” Swartzman said. “They are focusing on their individuality in so many ways. We have been seeing that in the auction house space and I think real estate is another example of that.”