With the stock market on a rollercoaster, recession concerns mounting, and interest rates still hovering at elevated levels, you might expect big-ticket purchases to take a back seat. But for the ultra-wealthy, one asset class continues to draw strong demand: luxury real estate. In fact, 68% of surveyed Coldwell Banker Global Luxury® Property Specialists say their affluent clients are maintaining or even increasing their real estate investments. An even more telling sign? 96% report steady or rising all-cash purchases—proof that high-net-worth individuals still view prime property as a safe haven in uncertain times.

But what’s driving this continued confidence? And how are today’s affluent buyers thinking differently about real estate as a long-term strategy? We turned to Winston Chesterfield, founder of London-based Barton Consulting and expert contributor to the Coldwell Banker Global Luxury® Mid-Year Report, for insight into the motivations and mindsets shaping today’s luxury market.

Here, in an extended version of our interview, Chesterfield shares his perspective on why real estate remains a core pillar of wealth preservation—and how luxury buyers are evolving in response to today’s economic landscape.

Why do wealthy buyers still put their money into luxury property during uncertain times?

Winston Chesterfield: It comes down to the tangibility of real estate. Real estate is physical, and it doesn't just waste away. In financial markets, how quickly a stock can diminish in value can be unsettling—whereas property offers a sense of stability, permanence, and control that many high-net-worth individuals find reassuring. In times of volatility, when financial assets fluctuate and people get burned by the markets, that experience tends to leave a lasting impression. As a result, many are leaning into asset classes they understand—like real estate—where the risks feel more tangible and manageable.

At this level, it’s also about wealth preservation. Real estate acts as an anchor point in their net worth. There may be an opportunity factor: if properties are perceived as undervalued, they want to buy before that window closes.

Are there differences in how the ultra-wealthy approach real estate versus aspirational luxury buyers?

Chesterfield: As you move higher up the wealth ladder, liquidity levels typically increase—to around 40% for ultra-affluent individuals, whereas lower wealth tiers are typically closer to 30%. This gives them the flexibility to act when opportunities arise because they just don’t need to liquidate for events like this. They also like to buy at times when properties are seen as undervalued. At this level, they’re likely more focused on acquiring long-term “trophy” assets—investments that will endure and preserve wealth over time. They’re sticking with proven postcodes and established markets, often taking their time to research and make the right choice. 

Aspirational wealthy buyers—what some call “Everyday Millionaires”—tend to be more cautious. While they’re not a core focus of my firm’s research, many are entering the luxury market for the first time, often thanks to gains in home equity. They're more sensitive to fluctuating interest rates and market volatility, which has made them increasingly selective. The appetite for risk is lower. They’re starting to question the long-term value of villas in remote locations or brand-new developments without a proven track record. Instead, they’re gravitating toward properties that offer both experience and equity—like a well-located beachfront home with strong rental potential. For them, practicality and lifestyle go hand in hand, but in today’s climate, it’s the investment value that often tips the scale.

How is generational wealth transfer factoring into the luxury real estate picture right now?

Chesterfield: For many wealthy families, the process of transferring generational wealth has been underway for years. It’s not a sudden event. 

It’s common to see young adults already sitting on boards or involved in family businesses by their late 20s or early 30s. In many cases, modest property gifts or investments are made early, with larger transfers coming later. Once those major transfers occur, real estate is often the first place they invest—whether it’s a holiday home, a ski chalet, or a larger primary residence for their growing family. The ultra-wealthy tend to be well-prepared, with families planning together across generations. By the time Baby Boomers are ready to pass down assets, their children are already set up to receive them. In fact, many of those transfers are already happening through estate gifts and planned inheritances.

In the lower wealth tiers, however, the story is a bit different. Many are just beginning to think seriously about wealth transfer. Some don't yet consider themselves “wealthy enough” to create a formal plan, but that perception is shifting as property values rise. As they begin to structure assets for the next generation, we’re likely to see a surge in inherited properties—particularly primary homes. That’s where the most significant demographic change in luxury real estate may come.

Explore more insights from Winston Chesterfield and other experts in the latest Coldwell Banker Global Luxury® Mid-Year Report.