Luxury Real Estate Trends 2026: The Truth About Location, Location, Location

By Eric D. Hadar, Chief Executive Officer, Allied Partners 

"Location, location, location" has long been the primary driver of property value. This still holds, but looking ahead to 2026, there are some significant shifts to watch out for.

I was invited to join a distinguished panel of the leading global industry experts in Istanbul for the Kempinski Past Forward Summit, where we explored trends in real estate and the evolving luxury hospitality landscape. All on the panel agreed that while location remains important, authentic luxury is equally, if not more, essential. The traditional metrics that once made real estate valuable were location and grandeur; demand was a commodity, and it was always assumed that tenants would pay. Today, luxury condominiums and high-end office spaces are increasingly defined by service, experience, and authentic connection, rather than just location alone. Human interaction, convenience, ease, and comfort have become some of the most influential factors in property value.

Authentic Luxury Redefined

In today’s market, authentic luxury is defined by elevated, personal, and purposeful service. More than ever, the true measure of success is how a space makes someone feel, not simply where it is located. White-glove attention and thoughtful service are essential. Building grandeur matters less than the sense of belonging it creates. A recent article in The Wall Street Journal reported that luxury today is defined by time-saving, efficiency, and personalized service, as well as exclusive services and amenities, such as private car elevators to residences and members-only clubs, aligned with a desire for privacy and curated experiences.

The Rise of Authentic Hospitality

It’s no longer just about where people live, but how they feel when they’re there. Whether traveling or at home, people crave authenticity and comfort; spaces that slow time and let them feel unpressured and appreciated. We all want to feel welcomed and valued. Real estate now intersects with hospitality, like hotels fostering emotional connections that make guests feel at home. This approach is now shaping the luxury residential market.

Concierge Residences: Blurring the Line Between Living and Hospitality

Concierge residences reflect this shift, blending the amenities of a five-star hotel with the exclusivity of a private members' club. The model: run a condominium residence like a hotel, treating residents as guests. Concierge service, white-glove staff, and hospitality aren’t differentiators; they’re expected. Every team member, from doormen to management, delivers five-star service. This approach intentionally blurs the lines between living and vacationing. Residents enjoy the comfort of home paired with the effortless luxury of hotel living. It’s an elevated lifestyle that transcends glitzy architecture, rooted instead in the everyday feeling of being taken care of.

Blurring the Lines Across All Property Types

The blend of hospitality and residential living reflects a shift across property types. Since the pandemic, offices have undergone significant changes as well. With more remote work, companies know workplaces must now be engaging and attractive, making people want to come in and work, not because they must, but because they genuinely want to. At home, in the office, traveling, or shopping, people seek the same integrated experience — one that is defined by comfort, convenience, and meaningful connections.

5 Key Luxury Market Trends for 2026

Across multiple panel discussions, five key factors as key to defining luxury were highlighted:

1. Luxury Outpaces the Mass Market Key luxury retail groups have consistently outperformed mainstream counterparts. The Average Daily Rate (ADR) growth of luxury hotels outpaces the overall market, and the luxury residential sector is projected to continue to demonstrate greater resilience than the broader housing market.

2. Demographics Will Drive Future Growth The rising number of High-Net-Worth Individuals (HNWIs) will fuel spending and continue to shape the sector. Wealth transfer from Baby Boomers to Gen X and Gen Y will introduce a new wave of luxury consumers, requiring brands to adapt to shifting preferences.

3. Experience and Exclusivity Top the List In luxury, the experience matters as much as the product itself. VIP lounges, customized items, personalized services, as well as concierge and VIP services in hotels and residences are essential for enhancing exclusivity.

4. Cross-Sector Expansion Continues The continued integration of hotel and residential offerings will continue to provide a more comprehensive and holistic luxury experience.

5. Emerging Luxury Destinations As competition intensifies, luxury brands are expanding their reach beyond prime streets, resort towns, secondary cities, and out-of-town locations. In residential sectors, demand for two-hour retreats will increase in effort to drive development outside traditional hubs.

Allied Partners, founded in 1993, is a privately held real estate investment, development, and asset management company. Over more than three decades, Allied has amassed a portfolio of New York City’s most significant and architecturally notable buildings, valued at more than $3 billion. Allied Partners provides a unique level of expertise as owners of some of the most prestigious and iconic buildings in New York City, offering an unmatched understanding of what it takes to ensure a building’s success – exceptional service, a sense of luxury, indulgence, comfort, and lasting value. Whether a property is owned by or expertly managed by Allied Partners, every asset is treated with the same level of care, precision, and long-term vision.