Manhattan Apartment Sales Soar as Wealthy Seek Refuge in Real Estate
The Manhattan real estate market is experiencing a resurgence, with apartment sales jumping 29% in the first quarter compared to the same period last year. According to reports from real estate appraiser Miller Samuel and brokerage Douglas Elliman, there were 2,560 closed sales totaling $5.7 billion in value during the first quarter of 2025.
The strength in the market has been driven by the high end and luxury properties, with sales of apartments priced over $5 million soaring by 49% compared to last year. Ultra-high-end properties priced at $20 million or more had their best first quarter since 2019.
One of the key factors contributing to the robust real estate market is the confidence among luxury buyers, who tend to be less affected by fluctuating mortgage rates. In fact, 58% of the sales in the quarter were all cash, with properties over $3 million seeing 90% of sales from all-cash buyers.
While the mid-market segment of Manhattan real estate, properties priced between $1 million and $3 million, saw a decline in signed contracts, lower-priced properties performed better. The resurgence in Manhattan real estate is being attributed to a combination of macro and micro forces.
The decoupling of apartment sales from the volatile stock market in the first quarter has made real estate a more attractive investment, especially in prime wealth markets like Manhattan. Back-to-office mandates from big banks and companies are also bringing affluent buyers back to the city on a more permanent basis.
The “boomerang wealthy,” those who moved away during the pandemic and are now returning to New York, are also contributing to the uptick in sales. Additionally, the “great wealth transfer” from baby boomers to their children and relatives is driving more buyers to acquire real estate as long-term legacy assets.
While the sales closed in the first quarter were negotiated months earlier and may not fully reflect March’s market uncertainties, the strong signed contracts for luxury properties in March indicate a promising outlook for the future. Overall, Manhattan’s real estate market is thriving and showing no signs of slowing down.
In the words of Pamela Liebman, president and CEO of Corcoran, “It’s clear that Manhattan’s market is not just holding steady — it’s thriving.” With affluent buyers showing renewed confidence in the market, Manhattan’s real estate sector looks poised for continued growth in the coming months.
