As we wrap up a year defined by homeowners feeling stuck in place, professionals across the industry are forecasting 2025 real estate trends in order to better arm themselves for what lies ahead. Zooming out, both Fannie Mae and Zillow predict mortgage-rate volatility, with the former anticipating numbers above 6% throughout 2025. A result could be the lock-in effectthat is, homeowners staying put in homes theyd rather sell. As hard to predict as the world of real estate may be, there are still a handful of more granular trends that seem sure to define 2025. Below, AD PRO presents predictions gleaned from discussions with more than 10 real estate professionals, including agents, developers, designers, stagers, and more.The Residence, a shoppable showroom at 144 Vanderbilt in Brooklyn, was designed by General Assembly with products from their retail outfit, Assembly Line.William Jess LairdThe model-apartment-as-showroom model will continue its upswingCertain brands and designerslike Radnor and FrenchCaliforniahave been putting a showroom spin on model residences for years. But in 2024, what began as a slow trickle of new showrooms as model apartments has turned into a steady stream. And from what weve heard, theres likely to be a lot more where that came from in 2025. Some of the best recent examples weve seen are in New York City: the Artemest penthouse at The Greenwich by MAWD, FrenchCalifornia and design brand LObjets collab at 212 West 72nd Street, and General Assemblys two-floor unit (with items from their shop, Assembly Line) in 144 Vanderbilt. These spaces offer a more defined vision of life in the new developments than a typical model residence, and are shoppable, adding another level of turnkey convenience for new residents as they undergo the complicated process of decorating their new home.For us, it is about creating an immersive environment that extends the ethos of whichever project the unit is within, says project manager Josh Bransky of Tankhouse, the developer behind 144 Vanderbilt. Using the interior design of a model residence as a platform to sell furnishings and pieces allows us to align all of our incentives and reach a new yet relevant audience. It also enables us to work with a wider scale of designers and fabricators who might not normally be able to operate in this space.The sales gallery at 200 East 75th Street helps showcase the high-end finishes a potential buyer might want to spec in their own home.Hayley Ellen Day | DD-RepsSales galleries will be more important than everAs model apartments provide a view of life in a new building, the tactility of sales galleries is also becoming essential to closing deals with buyers. Danielle Naftali of Naftali Group, which has developed a number of residential buildings across Florida and New York, sees this shift as a move away from decorator-ready condominiums. Those types of units sometimes lacked molding, and lighting, and other details, falling short of buyers expectations. Now, clients want fully finished residences that are essentially turnkey and move-in ready upon closing, according to Naftali. With that, seeing the quality of the kitchens, bathrooms, and finishes at a sales gallery became essential to provide the overall expectation of quality, design, and service residents can expect when the property is completed. From a sales perspective, this has allowed us to assure our buyers of the quality they are purchasing well before the development is delivered.Ted Segal of EJS Group has witnessed the power of sales galleries at 200 East 75th Street, a building designed by Beyer Blinder Belle Architects with interiors by AD100 firm Yellow House Architects. People want to experience things firsthand, in person, live. If its a real estate project, they want to be first at the sales gallery and then ultimately at the project site. If its a live event, they want to go to the event rather than watch it on TV, says Segal. Buyers have choices, and theyre able to see what our development team is able to deliver when they visit the sales gallery. I think the market is speaking with a preference to what were doing at 200 East 75th.Branded residences will go even biggerYou barely had to pay attention to the world of real estate to notice a major uptick in branded properties in 2024. Elle magazine announced its first-ever branded residence, as did chef Jean-Georges Vongerichten, Italian sports car manufacturer Pagani, and many others. Because theres so much competition in markets like Miami and New York, industry insiders predict that this emphasis on branded projects will only increase in 2025 as developers leverage the power of brand recognition in their favor. The hyper-competitive real estate market in Miami and beyond demands more than just square footageit requires a comprehensive narrative of living, says Vertical Developments CEO Fernando De Nuez y Lugones. The executive is one of the brains behind Elle Residences Miami and Riva Residenze, a yacht-branded residence. For passionate brand enthusiasts, these properties represent a unique opportunity to elevate daily living, [and to surround] themselves with a curated experience theyve long admired and aspired to embrace.David Martin, the CEO of Terra, the developer of Jean-Georges Miami Tropic Residences, thinks well see more innovation in branded residences going forward. In 2025, I believe well see new iterations of the concept, Martin says. The developments that differentiate themselves will be those that go beyond a flashy logo and leverage the brands expertise to offer experiences that are innovative and new for residential buildings.Inside a unit designed by Staged to Sells Jason Saft, who embraces a more character-driven approach to real estate staging.Shannon Dupre | DD-repsStaging will embrace the pastJason Saft, the CEO of professional staging company Staged to Sell, has been in the real estate industry for over 20 years but believes theres an aesthetic shift afoot. For years, the prevailing theory was that spaces should be staged neutrally and impersonally in order to appeal to as many buyers as possible. Thats all changing as stagers like Saft create distinct environments accessorized with historic and idiosyncratic pieces. I think the staging industry as a whole bought into modernism from the beginning. I think its just easier: Its less stuff, its less expensive, but its also very cold after a while, and its limiting, he says. Im putting it out there, and Im starting to see other people in other markets [lean into antiques].As far as the sales impact goes, staging with pieces from older time periods has led to sales well above list price for properties outfitted by Staged to Sell. (One recent Upper East Side residence set up by the company went for $1.75 million over asking.) It can move units more quickly, too: A Midtown East home that had sat on the market for 266 days sold within 22 days after Staged to Sell reimagined it. People are in fact paying a higher price for older homes done in a way that blends time periods and styles, Saft tells AD PRO. It has picked up momentum to strong results in cosmopolitan territories where buyers are looking for something that feels more specialized and are accustomed to paying a higher price for what they want, or something they feel personally connected to them.Douglas Elliman real estate agent Jennifer Leahy seconds the motion. Buyers want personalities in homes. The days of everything being white and fluffy are not behind us, but have transitioned to more personality, she says. I've seen my stagers now keep some of the antiques that are in the home, and supplement [them with] more transitional furniture. Just as in an actual, lived-in home, its all about the mix: Youre allowed to have your grandmothers antique in that room along with a very nice gray or neutral couch.The roof deck at Bisby, a development in Jersey City, features pickleball courts, a sundeck, outdoor kitchens, and a dog run.Courtesy of Newport RentalsCommunity will be at the forefrontIn both the multi-family development and single-family home markets, community is central to purchasing decisions. Ninety-two percent of recent homebuyers with children are willing to compromise elements of their dream home to be in a community perfect for their families, says Mike Miedler, CEO of Century 21 Real Estate, citing a study recently commissioned by the company. Were seeing that despite the recent challenges of the market, homebuyers are ready to focus on the joy and positive feelings associated with [purchasing].Avdoo & Partners Development has been tapping into this at Bergen, a Brooklyn condo that launched sales in spring of 2024. Spa and wellness amenities are table stakes at this point, but tapping into specific ways that neighbors can connect with each other is whats really resonating. Many of the in-contract buyers have stated that the amenities are the main reason they were drawn to Bergen, says CEO and partner Shlomi Avdoo. Programmed spaces that encourage connectivity are still limited in New York City development, but considering how buyers are responding to those amenities, its not long until they become essential.Its becoming a must-have that people find spaces that are in between their workspace and their home, their apartment, where they can socialize, do work, and exercise, says David Thom, the senior managing director of design and development of LeFrak. His firm has recently been at work on Bisby, a New Jersey property with a rooftop pickleball court, sundeck, and outdoor kitchens, as well as a dog run. For many buildings, its become increasingly competitive in the marketplace to provide these sorts of amenities in order to provide those kinds of spaces for prospective tenants.Versatility will be the name of the game for buyers in 2025, according to designer Nina Magon. The kitchen island is one great case study for the type of design fixture that plays wellits a multiuse space, she says. Families can be together.Par Bengtsson courtesy of Nina Magon StudioHomeowners will seek more adaptabilityWhile the beginning of the COVID-19 pandemic seemed to reinforce the need for a home office, nearly five years later, AD PRO Directory designer Nina Magon thinks the rest of the floor plan has warped. Forget the home officehomeowners want to be able to comfortably work from whatever room theyre in. Usage of space has become more specific and more versatile, Magon says. Weve noticed that people dont necessarily want the 15,000-square-foot house anymore; they want the house where every room serves a purpose, or [is] dual purpose.Were also putting floor plugs in family rooms, so that work can happen while youre watching CNN, while youre in the mix with other people, Magon explains. Its like a coworking space inside of your house, where everybody is together, but also has the ability to do their work. The versatility of a kitchen island is one example of this idea at play, she adds. Dad or Mom can do their work on a computer, sitting in the same room with the charger while the TV is on. Its a multiuse space, so that families can be together.In practice, this has led Magon to get a lot more specific with clients in her introductory questionnaire. Whereas she might have inquired about desired room types in the past, she now asks very detailed questions about exactly how they plan to use each room; how many people they envision being in any given space at any time; and, when it comes to kitchen and dining room design, how exactly theyll serve food and what they like to eat.Fido gets a luxe kitchen, too, in this kitchen island by Kingdom & Co.Stephen Morgan courtesy of Kingdom & Co.Built-in pet features will be worth the investmentOn a more micro level, a couple of the industry experts we spoke to predict that the world of built-in pet features is only going to grow more expansive in the coming year. We first noticed the rise of ultraluxe pet home accoutrements a couple of years ago, but along with those $2,500 dog beds, built-in features are set to become more prominent in the coming year. Lincoln Rogers, the co-owner of AD PRO Directory design-build firm Kingdom & Co., notes that built-in pet-centric features have been requested more and more lately. Animals are very important to people, so thats happening a lot more, even with cats, Rogers says. The company has crafted built-in pet bowl stations with pot-fillers positioned over the water bowl and built-in cubbies for dog beds in mud rooms. Rogers and his team try to talk people out of certain trendy features so they dont waste their money, but he believes the widespread love for pets makes these features a worthwhile investment.Leahy has sold numerous homes with built-in dog-washing stations and thinks theyre always a positive, even for prospective buyers who dont have pets of their own. I havent had any negative feedback on dog-washing stations, Leahy says. I had someone who didnt have a dog, who was buying a house with a dog-washing station, but they were like, Maybe well get a dog! I think its always a positive.APPLY NOWGrow your business with the AD PRO DirectoryArrow