While still a niche segment of the luxury real estate market, some owners of high-end properties are increasingly embracing online auctions to sell their homes. Once rare, this method—common in the U.S.—is gaining traction in prestigious European markets such as Paris, London, and southern Italy, thanks to the efforts of elite real estate firms like Drouot and Knight Frank. A Financial Times report explores this emerging shift in how luxury homes are sold.

One example involves an elderly couple in their late 80s who bought a duplex with a terrace in Paris’s sought-after 7th arrondissement back in 2008. Now looking to downsize to a ground-floor apartment with a garden, they’ve chosen to bypass traditional real estate listings and instead sell their home through an online auction. The bidding begins at €7.5 million, with the property going to the highest bidder.

Auctions, once a sales method primarily used for distressed properties, have become an established model for luxury home sales in the United States and are now gaining traction in Europe.

"What was once seen as a sales channel of last resort, or driven by necessity, is increasingly being adopted as a strategic way to sell luxury properties," says Daniel Langer, CEO of the consulting firm Équité and professor of luxury strategy at Pepperdine University.

This Paris apartment was sold through Drouot.immo, an online real estate auction platform launched in 2024 by Drouot Immobilier, the division of Hotel Drouot, France's oldest auction house.

Knight Frank, a luxury real estate consultancy, also recently launched its own auction division, called Venteu.

According to Maëlys de Lummen, president of Drouot Immobilier, auctions attract owners who value the speed and predictability of the sale: "They know everything will be finalized on a set date."

Among the properties mentioned by the platform are a castle in the Loire Valley, a Provençal house, and a villa in Cannes, all with starting prices above 500,000 euros. One exception is a house in the Pyrenees, whose auction started at 299,000 euros.

According to de Lummen, 20% of the houses at auction had previously been on the traditional market without success. Most turned directly to auction as their first option, seeking transparency, speed, and visibility. "Luxury home auctions allow you to sell a castle or a penthouse with the same efficiency as a masterpiece," he concludes.

Current conditions in the luxury real estate market are influencing homeowners' selling decisions. Transaction volume has fallen across almost all segments, and many luxury homes are taking longer to sell—a difficult proposition for many sellers.

According to the Paris Chamber of Notaries, luxury property sales declined in the second half of 2024, dropping to levels even lower than those seen during the pandemic. In London, transactions involving homes valued above $10 million fell by 37% in the first quarter of 2025 compared to the same period the previous year, with restrictions on foreign buyers contributing to the downturn, according to Knight Frank.

Meanwhile, the U.S. luxury real estate market has remained relatively stable. Cities like New York, Palm Beach, Los Angeles, and Miami continue to lead in sales over $10 million—second only to Dubai. However, despite ongoing interest, the pace remains slow: in 2024, luxury homes took an average of 319 days to sell, according to data from Concierge Auctions.

This American auction house, partly owned by Sotheby's, dominates the luxury home auction segment in the US, accepting only 5% of the properties listed and controlling 85% of the global market. Since 2008, the company has sold properties worth over $4 billion (€3.448 billion) in 46 states and 35 countries.

In 2024, Concierge Auctions sold several properties above $20 million, while the UK's Allsopp broke records with £610 million in auction sales, although most were below the top end.

Although platforms like Drouot.immo provide in-person viewings and pre-auction registration, almost half of buyers never actually see the property, according to Smith. “They buy based on virtual tours and legal documentation—such as maps, zoning, or technical reports—just like at a classic car auction.”

The growing interest is driven by a new generation of buyers accustomed to digital platforms. “For them, auctions are natural, fast, and exciting, unlike traditional methods, which can seem outdated,” says Professor Daniel Langer.

Americans represent about half of the bidders at Venteu auctions, including two properties recently sold near Matera, in southern Italy. One of them sold for €1.95 million—€825,000 above the high estimate.

The future will tell whether the devaluation of the dollar will affect American interest in European real estate. The remaining buyers come from Northern and Eastern Europe, particularly Swedes, who represent 5% of the client base.

Despite the growth, real estate auctions are not immune to controversy: there are lawsuits in the US for alleged use of fake bidders to inflate prices. And they don't always result in sales. For example, two properties auctioned in London by Sotheby's in May, with base prices of £8 million and £3 million, were withdrawn after bids were deemed low.