Manhattan's Luxury Market Just Had Its Best Q1 in Six Years — Here's What That Means

The first quarter of 2025 just confirmed what many of us in the business were starting to feel — Manhattan's luxury market is officially back in action.

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According to reports from Miller Samuel and Douglas Elliman, apartment sales across Manhattan surged 29% year-over-year, totaling 2,560 closed deals.

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But the real headline? Those deals added up to a staggering $5.7 billion — a 56% jump from the same quarter in 2024.

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What’s fueling the fire? It’s the top of the market. Sales of units priced over $5 million spiked nearly 50%, and properties over $20 million had their best first quarter since 2019.

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Compass noted this trend is being led by ultra-wealthy buyers looking to diversify their portfolios — and real estate in Manhattan is still one of the safest bets in their eyes.

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All-cash purchases dominated. Nearly 60% of all sales this quarter were made without a mortgage. For homes priced over $3 million, that figure jumped to 90%. High interest rates? Not really a factor when your buyers are writing checks outright.

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Interestingly, the mid-market ($1M–$3M) is the only segment that stumbled, seeing a 10% dip in signed contracts. But the lower end of the market, $500K–$1M, held its own.

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It just reinforces what we’re seeing on the ground — polarization. The very top and bottom ends of the market are moving, while the middle waits.

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Beyond the numbers, a few key factors are shaping demand:

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• Wealthy buyers are returning to NYC full-time, especially with more companies calling folks back to the office.

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• The "boomerang wealthy" are leaving Florida and L.A. and heading back to Manhattan.

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• We’re seeing an uptick in purchases made through family offices and trusts, driven by the ongoing wealth transfer from boomers to the next generation.
  
  

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Yes, some of this activity reflects deals that were inked months ago — before March’s economic uncertainty. But fresh data from March shows no slowdown.

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In fact, signed contracts for homes over $10M tripled that month. That tells us momentum isn’t just lingering — it’s building.

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Manhattan’s luxury market isn’t just rebounding — it’s thriving again. If you’re a seller with a high-end unit, the window to list might be wide open.

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And if you're a buyer looking to get in before prices climb further, now might be the time to act.

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Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.

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