AREAA Luxury Summit 2025: 10 Trends Shaping the Future of Luxury Real Estate

Resilience, Innovation, and Adaptability are the Keys to the Future.

By Craig Hogan

Last week, I had the honor of speaking on the lead panel at the AREAA Luxury Summit 2025. The event brought together economists, real estate leaders, and innovators to explore what’s next for luxury real estate.

The message was clear: our industry is entering a new chapter—defined by resilience, innovation, and adaptability.

10 Key Takeaways

1. The Economy Is Resilient but Fragile. Growth has returned in 2025, but tariffs, inflation, and shifting investment trends are creating an uneven landscape.

“Resilience is here—but so is fragility. The market requires both caution and boldness.”

2. Luxury Housing Is Cooling, Not Collapsing. High-end markets have softened since early 2025, but this is creating opportunities for strategic buyers.

3. Inventory Gains Matter. Active listings are at their highest level since 2019, offering buyers more leverage and variety. We’ve seen this dynamic firsthand in the Gold Coast, Streeterville & River North Condo Market.

4. Insurance & Construction Costs. Rising premiums and tariffs are reshaping affordability, especially in high-risk and high-cost markets like California.

5. Interest Rates Could Unlock Demand. A Fed rate cut expected in September may release pent-up demand for buying activity.

6. Cautious but Active Buyers Affluent clients are more measured, taking a “wait-and-see” approach rather than stepping out entirely.

7. Global Capital Flows Are Rebalancing. International buyers are becoming more intentional—focusing on safe-haven markets, lifestyle hubs, and tax-friendly destinations.

8. Generative AI is Reshaping Real Estate. AI is moving from hype to adoption, transforming property marketing, analytics, and the client experience.

“Advisors who embrace AI strategically will be the ones who stay ahead of the curve.”

9. Advisors Must Lead with Expertise. Volatility is widening the gap between professionals and dabblers. Data fluency, negotiation skills, and storytelling remain critical. As I shared in The Long Game, enduring success in real estate comes down to discipline, data fluency, and deep market knowledge.

10. 2025 Outlook: Measured Optimism Expect modest improvement in sales and pricing in the second half of the year, but policy and insurance challenges remain. This echoes the tone of our Downtown Chicago Condos: A Strategic Reset story.

A Conversation Across Decades of Luxury

One of the highlights for me was joining a panel of four former national luxury chairs, each representing major markets and bringing more than 25 years of experience individually. Alongside me on the panel were Zar Zangeneh (The Agency, Las Vegas), Herman Chan (Sotheby’s, California), and Danny Leung (Chicago & D.C.)—three industry leaders who, like me, have each navigated decades in this industry. Together, we shared the wild stories, market lessons, and client insights that only come from decades in the field. Together, we reflected on the highs and lows of our careers—the craziest deals, complicated transactions, and the evolution of the upper-bracket market.

What stood out most? The fundamentals haven’t changed. Understanding the client’s profile, navigating personalities, and having deep market knowledge remain the keys to success. In today’s environment—with more “noise” than ever—the best advisors stay relevant by doubling down on what truly matters.

My connection with AREAA goes back over a decade. In 2016, I was featured in an AREAA “10 Questions” interview, where I spoke about the future of luxury, the rise of smart home technology, and the importance of professionalism. Nearly ten years later, those same themes resurfaced on stage at the 2025 Summit—proof that while markets evolve, the fundamentals of expertise and client service never go out of style.

Final Thought

At Hogan Zavala Group, we believe moments like this highlight why expertise and foresight matter more than ever. Real estate isn’t about chasing headlines—it’s about anticipating shifts before they happen and guiding clients with clarity, strategy, and confidence.

Where do you see the greatest opportunity in luxury real estate for 2025? I’d love to hear your thoughts.

— Craig Hogan & Rudy Zavala Hogan Zavala Group | Engel & Völkers Chicago

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