Shifting Strategies of Millionaire Investors

How Millionaires Are Rethinking Real Estate in 2025

The landscape of wealth is shifting. According to the Forbes Research 2025 High Net Worth Survey, wealthy investors are taking a more cautious approach to real estate this year. While real estate remains a prized asset class, the level of enthusiasm has softened compared to 2024.

In 2025, 71% of high-net-worth individuals (HNWIs) expressed an interest in expanding their property portfolios, either through acquiring new luxury residences or securing properties for personal enjoyment. But this represents a decline from the 87% who held the same ambition in 2024. The survey, conducted between April and May, polled 250 global participants with over $2 million in investable assets.

What Makes a Second Home Attractive?

For many HNWIs, investing in a second property goes beyond financial value—it’s about lifestyle. The survey revealed the top drivers behind these decisions:

• 74% seek properties close to exclusive amenities like private clubs, fine dining, and luxury retail hubs.
• 70% prioritize sustainability and environmentally friendly features, such as green-certified architecture and energy-efficient design.

These findings highlight that second homes are not just investments—they’re lifestyle extensions aligned with the identity and aspirations of the wealthy.

The Divide in Diversification Strategies

Despite ongoing interest, the confidence in real estate as the ultimate wealth anchor has weakened. In 2024, 35% of HNWIs fully agreed that diversifying into high-end properties was essential for long-term success. That number has now fallen to 21% in 2025.

The split becomes more pronounced among levels of wealth. For the ultra-wealthy—those holding over $30 million in assets—31% continue to view luxury property diversification as critical to financial longevity. By contrast, only 8% of those with $2 million to $4.9 million in assets shared this conviction.

This divide underscores a new reality: while the ultra-rich remain steadfast in their faith in real estate, their less affluent peers are reconsidering its weight within diversified portfolios.

Looking Ahead

As 2025 unfolds, one truth stands clear: real estate is no longer just about square footage or ROI—it’s about lifestyle, values, and long-term security. For some, it remains a cornerstone of generational wealth. For others, the shift signals a more cautious and diversified path forward.