Manhattan’s high-end real estate market is off to its best start in six years, as affluent buyers flock to luxury properties amid economic uncertainty.
New reports show that apartment sales in Manhattan surged by 29% in the first quarter compared to the same period last year, totaling 2,560 closed transactions. The combined value of these deals skyrocketed to $5.7 billion, marking a 56% increase year over year, according to data from Miller Samuel and Douglas Elliman.
Luxury Market Drives Growth
The biggest gains came from the luxury sector. Sales of apartments priced above $5 million jumped 49%, while ultra-luxury properties—those exceeding $20 million—saw their strongest first quarter since 2019, according to Compass.
“With mortgage rates remaining high, affluent buyers are prioritizing real estate as a stable investment, often opting for all-cash deals,” Compass analysts noted. Nearly 90% of sales for apartments priced above $3 million were all-cash transactions, highlighting the financial strength of this buyer segment.
Mid-Market Faces Challenges
While luxury sales flourished, Manhattan’s mid-tier market—homes priced between $1 million and $3 million—experienced a 10% decline in signed contracts. In contrast, more affordable properties between $500,000 and $1 million performed better, suggesting stronger demand from first-time buyers or investors.
A Shifting Buyer Landscape
The surge in sales reflects both macroeconomic trends and local market shifts. Wall Street’s volatile performance has pushed wealthy investors toward tangible assets like real estate. Additionally, corporate return-to-office policies are prompting high-net-worth individuals to reestablish a presence in Manhattan.
“There’s a noticeable return of buyers from Florida and Los Angeles,” noted Compass agent Charlie Attias, referencing the “boomerang wealthy” trend of pandemic-era relocators moving back to New York.
Another factor fueling the market is the ongoing “great wealth transfer,” as baby boomers pass down trillions of dollars to younger generations. Many family offices are now acquiring Manhattan real estate as part of long-term wealth preservation strategies.
A Promising Outlook
Though the robust first-quarter numbers largely reflect deals negotiated months prior, recent contract activity suggests momentum will continue. Signed contracts for apartments over $10 million tripled in March, signaling strong demand heading into the rest of the year.
“Manhattan real estate isn’t just stable—it’s thriving,” said Corcoran CEO Pamela Liebman.
With luxury buyers showing renewed confidence and a steady influx of capital into high-end properties, Manhattan’s real estate market is proving its resilience in 2025.
