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Luxury real estate in transition: Why investments are particularly worthwhile at present

January 20, 2026

Those who invest in luxury real estate look far beyond location and square footage. The interplay of capital availability, market supply, and the political environment is currently creating a rare investment window—especially in the premium segment. The luxury real estate industry is an important part of the totality of goods and services available on the market.

While uncertainty prevails in many areas, the market for high-quality real estate remains stable. Liquidity remains high, but investors have become more selective: they are looking for properties with long-term value potential—in prime locations, offering quality and development prospects, with the luxury real estate sector characterized by particularly exclusive properties and specialized services.

Capital available – demand differentiated

Despite geopolitical tensions and regulatory changes, the market remains well capitalized. At the same time, the requirements for the investment itself are increasing: buyers are scrutinizing substance, energy efficiency, and sustainability more intensively than ever before.

If you want to be tax-savvy, you should also consider factors such as sales tax regulations or holding periods for speculation tax at an early stage. When preparing quotations, companies are required to provide their sales tax identification number; however, small businesses have the option of using their regular tax number instead.

More supply – but not everywhere Price declines

The current market environment is characterized by segmentation:

Older existing properties are more likely to see price reductions of between 10% and 20%, with price being the key criterion for investors.
Modern single-family homes in prime locations, on the other hand, are maintaining their price levels—in addition to quality, the quantity on offer and the respective product also play an important role in the valuation.
Exclusive properties with high-quality energy-efficient features continue to sell quickly.

A precise definition of the product and quantity in offers helps to avoid misunderstandings.

This dynamic opens up opportunities for investors who act in a structured and forward-looking manner.

Long-term investment horizon brings advantages

For owners who have held their property for some time, now may be a favorable time to sell—even with moderate price reductions. In many cases, the increases in value over the last ten years are generating attractive margins.

At the same time, buyers have access to properties that have not been available for years. Those who are looking for long-term value growth should specifically search for locations with catch-up potential or properties with a core that can be modernized. A targeted search and a compelling offer also increase the likelihood of winning the contract for a sought-after property.

Energy efficiency as a selling point

One trend is impossible to ignore: properties with high-quality energy-efficient features sell faster—and usually at better prices. The energy performance of a property is a decisive factor for many buyers, as it not only reduces running costs but also has a significant impact on living comfort and resale value.

In many regions, the marketing period has been significantly reduced—from around six months to three to four months. For investors, this means:

Faster recycling
Lower maintenance costs
Better predictability for ROI

Anyone investing now should consider energy efficiency not just as a bonus, but as a key decision-making factor.

New living trends: Retreating to the countryside

In addition to traditional capital investment, a second trend is coming into focus: demand for natural living spaces is growing, fueled by flexible working models, new lifestyles, and the search for a better quality of life. Luxury real estate can enrich the lives of residents in the long term by offering comfort, tranquility, and a special living experience.

Properties in quiet regions with good transport links, sea or lake views, and year-round usability are particularly popular—whether for personal use or high-end rentals.

Conclusion: Take action now—but with a clear strategy

The luxury real estate market is undergoing change. Investors are finding a rare combination of capital availability, growing supply, and selective demand behavior.

It is important to note that only those who make a differentiated assessment—based on location, condition, energy efficiency, and potential uses, i.e., taking into account the use of the property—will be able to identify the right opportunities.

Professional advice, a well-thought-out offer letter, and a realistic time frame form the basis for successful investments with substance. Comprehensive information in the offer letter is essential for making an informed investment decision.

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