Luxury Market Update!
In the third quarter of 2025, Manhattan’s luxury real estate market continued to outperform the broader residential sector, reflecting both resilience and renewed confidence among high-net-worth buyers. Sales priced at or above $5 million surged nearly 15% year-over-year, underscoring sustained demand for premier properties even amidst constrained inventory.
Condominiums priced above $3 million accounted for an impressive 25% of all transactions, marking a new record high. This reinforces a growing preference for luxury condos as versatile, high-performing assets—valued not only for their premier locations and amenities but also for their flexibility and long-term investment potential.
Activity remains robust week over week. As per Crain’s, the city's luxury residential market had a banner week following democratic socialist Zohran Mamdani's mayoral win, shattering any initial concerns that his mayoralty would send New York elites packing.
Buyers scooped up 41 high-priced condos, co-ops and townhouses in the five days after Mamdani's Nov. 4 victory, according to Olshan Realty, which tracks luxury contract activity. The tally continues a four-week hot streak that some feared would end with a Mamdani win.
It was also the first time since May that New Yorkers inked more than 40 contracts for apartments with price tags above $4 million, more than half of which were signed between Nov. 5, the morning after election day, and Nov. 9.
An increasing number of buyers—particularly those with an investor’s mindset—are reallocating capital into tangible, income-generating assets like prime real estate. The motivations are clear: diversification, wealth preservation, and the enduring stability of Manhattan property ownership.
Even amid limited supply, the luxury segment remains a haven for those seeking both security and appreciation potential.
If you have questions about current market dynamics or are considering buying, selling, or expanding your portfolio, connect with a trusted real estate advisor today to explore how to position yourself for success in this evolving market.
Written by. Marianna Dimentman | (E) mariannad@compass.com , (M) 917.853.3262
