April 21, 2025
After a quieter stretch in 2024, Manhattan’s ultra-luxury residential market just came roaring back — posting its strongest first quarter in six years. If you’ve been watching the market wondering when activity would pick up, this is your sign: the high-end is heating up, and serious buyers are making big moves.
According to reports from Compass and other top brokerages, properties priced over $20 million are finally moving off the shelf — many of them in all-cash deals. In fact, 58% of all sales last quarter were cash purchases. And if you look at units priced over $3 million, that number jumps to a staggering 90%.
When the stock market wobbles, Manhattan real estate tends to become the safe play — especially for ultra-wealthy buyers looking to move capital out of volatile markets.
There’s a clear mindset shift happening right now. A lot of these trophy properties that have sat quietly for months are suddenly in demand. With limited inventory at the high end and more clients looking to diversify away from financial markets, it’s no surprise.
The desire to own prime real estate — particularly in Manhattan — never really fades. It just waits for the right moment.
We’re seeing this momentum not just in individual deals but across the board. Q1 2025 saw nearly 2,560 closed sales, up 29% from the same period last year. Sales volume hit $5.7 billion, a massive 56% increase. And the $5M+ market?
Up nearly 50% year-over-year. It’s clear who’s driving this — the luxury segment is carrying the team right now.
But while the top of the market thrives, the mid-tier is still a bit hesitant. Buyers in the $1 million to $3 million range are asking more questions, weighing the economy, interest rates, and overall timing.
That uncertainty isn’t as present at the ultra-high-end. Those buyers usually own multiple homes and aren’t relying on financing — they’re ready to move when they see opportunity.
We’re also seeing external factors bring people back to the city. Stricter return-to-office policies, especially in finance and tech, are drawing high earners back into Manhattan.
Add in the "great wealth transfer" — the generational handoff of trillions in assets — and it’s clear: fresh capital is flowing, and many are choosing to invest it in high-end Manhattan real estate.
At the end of the day, it’s still a buyers’ market, even along Billionaires’ Row. For those in position to act, the first quarter proved that Manhattan luxury real estate is still one of the most trusted investments out there.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
