Gen Z, the generation born between 1996 and 2012, is ushering in a new chapter across various industries. They’ve revived 90s fashion trends, popularized second-hand shopping, and driven a surge in vinyl record sales. Now, as they enter adulthood and begin accumulating wealth, this generation is poised to reshape the luxury real estate market with their values, lifestyles, and tech-savviness.

Young generations are now the driving force behind the luxury market, with Millennials and Gen Z contributing the entirety of the growth in 2022, according to a report by Bain & Co. It is predicted that by 2030, spending by Gen Z and Generation Alpha (under 13 years old) will account for one-third of the total market, reflecting the “early maturity” attitude of this consumer group toward luxury goods.

 

Damac’s luxury residential project, in partnership with the Versace Home brand – Source: Damac
 

Gen Z is also entering the market earlier, starting to shop for high-end products at an average age of 15—3 to 5 years earlier than Millennials. “Gen Z has an extremely refined sense of style,” said Aaron Kirman, CEO of AKG Christie’s International Real Estate. “They have early exposure to the worlds of fashion and art, thanks to social media.”

Not stopping at luxury goods, Gen Z is making its mark in the real estate sector, surpassing other generations in homeownership trends.

The Emergence of Gen Z in Global Real Estate Markets

In Europe, some luxury real estate markets are beginning to capture the attention of Gen Z, thanks to favorable work visa policies and the rise of remote work. According to Alexander Benedetti, CEO of Benedetti Real Service, and Danilo Romolini, business manager at Romolini Immobiliare Christie’s International Real Estate, Italy is becoming a top destination.

Villa Ottoboni, Padova Padova, Padua, 35100 Italy – Source: Christie’s International Real Estate 
 

 Moxon Street Project, Marylebone, London – Source: Christie’s International Real Estate 
 

“A clear trend among Gen Z customers is the desire to own a second home,” Benedetti shared. “They are often HENRYs (High Earners, Not Rich Yet) or young entrepreneurs with a digital nomad lifestyle.”

Romolini added: “Gen Z buyers from the US see Italy as the ideal destination for remote work. They love the culture, cuisine, and relaxed lifestyle here.”

Redefining Luxury Real Estate

According to a study by Tata Consultancy Services, 84% of Gen Z consumers are willing to pay more for sustainable products with ethical sourcing—this also applies to housing choices. Homes that use eco-friendly materials or minimize carbon footprints are drawing attention from Gen Z.

“The desire to live sustainably is not only about the structure of the home but also extends to eco-friendly landscaping, preserving natural habitats, and promoting biodiversity,” shared Anastasia Menardi Demai, a broker at Benedetti Real Service.

 

Eywa is an eco-friendly boutique building in Dubai, featuring biophilic architecture and energy-efficient amenities. Listed by Christie’s International Real Estate Dubai.
 

In Dubai, another market attracting Gen Z, the demand for sustainability is evident through requests for eco-friendly technologies such as solar panels or water filtration systems. “Gen Z is playing a key role in driving sustainable real estate in Dubai,” said Jackie Johns, owner of Christie’s International Real Estate Dubai.

Beyond sustainability, Gen Z also favors homes equipped with advanced technologies, such as voice-controlled systems or smart lighting, to meet their need for personalization and convenience.

Compact and Flexible Lifestyle Trends

While previous generations favored large, luxurious homes, Gen Z is drawn to compact, efficient, and low-maintenance spaces. According to Edgardo DeFortuna, CEO of Fortune Christie’s International Real Estate, Gen Z’s flexible lifestyle leads them to seek homes that require minimal upkeep

Two-bedroom apartment at Bruton Place, Mayfair W1J – Source: Christie’s International Real Estate
 

Aaron Kirman added, “Instead of buying a $15 million home, they would opt for three $5 million properties in different locations. This allows them to fully embrace a nomadic lifestyle.”

Changing Real Estate Marketing Approaches

Gen Z is not only changing real estate preferences but also influencing how companies approach the market. Growing up with social media, they are driving the rapid growth of digital marketing.

“We are investing heavily in social media content – a key channel to connect with Gen Z,” Johns shared. “Real estate tour videos on Instagram or market insights on YouTube are highly popular. Additionally, we integrate advanced technologies, such as 360-degree virtual tours, in our offices and project launch events.”

Gen Z is gradually shaping the future of luxury real estate. With their flexible lifestyle, refined aesthetic taste, and focus on sustainability, they are not just homebuyers—they are redefining the entire market.

 

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