Q3 2025 Manhattan & Brooklyn 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. Just last week, 25 contracts were signed above $4 million, highlighting steady buyer engagement across the luxury tier. Condos once again led the market, outselling co-ops by a margin of 16 to 6, with three townhouse transactions rounding out the week’s high-end activity. Notably, we also saw the first contract signed at the iconic Flatiron Building, last asking $19.5 million, signaling continued appetite for architecturally significant and historic trophy assets.
As we move deeper into the fall market, 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.
Thank you for tuning in. 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
