Manhattan’s real estate market experienced a remarkable upswing in the first quarter of 2025, with apartment sales rising by 29% compared to the same period last year. This surge brought the total number of transactions to 2,560, up from 1,988 in Q1 2024, according to data from Miller Samuel Inc. and Douglas Elliman (NYSE: DOUG).
The total value of these transactions soared even higher, reaching $5.7 billion, a staggering 56% increase year-over-year. This growth was largely fueled by the luxury segment of the market, as affluent buyers sought stable investments amid economic uncertainties. Apartments priced above $5 million saw a 49% jump in sales compared to last year, while properties valued at $20 million or more recorded their best first quarter since 2019.
The luxury market’s resilience can be attributed to several factors. Many high-net-worth individuals opted for all-cash purchases, shielding themselves from elevated mortgage rates. In fact, 58% of all transactions during the quarter were cash deals, and for apartments priced over $3 million, this figure climbed to an impressive 90%.
Compass Inc. (NYSE: COMP), a major player in Manhattan’s real estate brokerage sector, noted that this trend reflects a broader strategy among wealthy buyers to diversify their portfolios and capitalize on generational wealth transfers. The firm highlighted that luxury buyers are less affected by fluctuations in interest rates due to their financial flexibility.
The median price of Manhattan apartments also rose by 11%, reaching $1.165 million during this period. While elevated mortgage rates deterred some buyers in lower price brackets, others seized opportunities in a market characterized by strong demand and limited inventory.
Douglas Elliman, which operates as a residential brokerage across key U.S. markets, has positioned itself as a leader in facilitating high-value transactions. Its expertise in luxury property sales aligns with the current market dynamics favoring premium-priced homes.
Meanwhile, Compass Inc., leveraging its technology-driven approach and extensive network of agents, continues to play a pivotal role in Manhattan’s thriving real estate scene. The company’s innovative platforms and services have helped streamline transactions for both buyers and sellers, further enhancing its competitive edge.
This robust performance underscores Manhattan’s enduring appeal as a global hub for luxury living and investment. With cash buyers dominating the market and demand for high-end properties remaining strong, experts predict continued growth in the city’s real estate sector throughout 2025.
