In the luxury real estate market, a shift is being experienced in how these properties are bought and sold. According to Sotheby’s International Realty Canada’s 2025 Mid‑Year State of Luxury Report, released in July, a growing portion of ultra-luxury transactions are now taking place entirely off-market, through private networks and unlisted negotiations.

While the number of real estate professionals who will be involved in the ultra-luxury niche, the growth of off-market activity at the ultra-luxury level reveals broader shifts that are still relevant across the industry. Professionals can gain an edge by recognizing the broader patterns in client expectations, to identify those consistent, transferable demands that apply across different markets, as well as changes in how transactions are being conducted.

A key learning from this shift to off-market transactions is the rising importance of privacy, discretion, and relationship-based dealmaking. These are differentiators in other segments as well.

Why Private Channels Are Growing

There are clear reasons behind the shift toward off-market sales in the ultra-luxury segment, which are also relevant in other markets.

Discretion is now expected. Buyers and sellers in the luxury range often seek to avoid media attention, online speculation, and prolonged time on the market. Privacy has become a core part of the value proposition. Many ultra-high-net-worth individuals prioritize privacy, personal safety, and asset protection. They are comfortable operating behind the scenes and expect the same from their real estate advisors.

Public marketing can weaken a property’s positioning. High-end listings that are visible on MLS channels for too long may appear stale or attract low-ball offers. In contrast, private sales allow sellers to set tighter terms and timelines, while controlling information flow.

Clients may also be seeking greater control in their transactions, and believe they can achieve that with off-market transactions.

It is important for real estate professionals to be aware that the qualities that make private transactions desirable at the high end can be just as valuable in smaller or niche markets. Even more broadly, the dynamics behind this shift offer lessons that can benefit real estate professionals in any market.

Learnings for Real Estate Professionals

The clearest lesson from this segment and the rise of off-market deals is the demand for confidentiality and discretion. Professionals in any market can benefit from ensuring sensitive data is secured and following privacy best practices. However, there are other key learnings.

Relationship Capital

Another of the most important insights from the rise of private transactions is the primacy of professional relationships over mass exposure. Off-market deals in the luxury space are brokered through deep networks, not flashy advertising. That principle extends beyond luxury. Agents in competitive or low-inventory markets, for example, can benefit from investing in personal connections, including lawyers, financial planners, builders, and other real estate professionals to point both potential clients and properties their way.

Clients Want Advisors, Not Just Agents

Clients are expecting a higher level of counsel, not just facilitation. This especially applies to high-net-worth individuals and real estate professionals, but it is also common with business owners, professionals, and multigenerational families. These buyers want someone who can understand and integrate their goals around schools, inheritance, zoning, and other considerations, not just negotiate on price.

No matter the price point, real estate professionals who approach their role with more financial literacy, planning awareness, and long-term thinking will be better positioned to serve a more informed and demanding clientele.

Trust Is the New Differentiator

Finally, the Sotheby’s report underscores that in high-stakes transactions, nothing replaces trust. Clients who transact off-market do so because they believe their broker will act with discretion, loyalty, and a deep understanding of their interests. That lesson is universal.

Maintain Absolute Confidentiality

Confidentiality is often a driving force behind the decision to conduct ultra-luxury transactions off-market. This is clearly an important part of the agent’s role, regardless of client or market, although it is especially important in the ultra-luxury market. Most real estate professionals already understand that confidentiality is a baseline expectation. No one needs a lecture on not disclosing names, prices, or terms.

However, there are more subtle moments where a client may begin to question an agent’s discretion, not because of any obvious breach, but due to an unintentional misstep. A social media post taken near a recognizable property, even if the home itself is not visible or mentioned, can signal carelessness to a client who values privacy. A folder left visible in a car may raise concerns, even if no personal information could be seen and the folder was not left unattended. Even something as simple as calling a client when explicitly asked to text only can be read as a disregard for boundaries. These small lapses can be significant to a client.

Maintaining discretion, even post-closing, is part of what distinguishes top-tier professionals in this segment from conventional agents.