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In the first quarter of 2025, Manhattan's luxury real estate market witnessed a remarkable resurgence, with apartment sales soaring by 29% compared to the same period in 2024. This uptick translates to 2,560 closed sales, a significant increase from the 1,988 transactions recorded the previous year. The total value of these sales reached an impressive $5.7 billion, marking a 56% surge year-over-year.​

High-End Market Drives Growth

The luxury segment, particularly properties priced above $5 million, played a pivotal role in this growth. Sales in this category surged by 49% compared to the previous year. Notably, the ultra-luxury market—properties priced at $20 million or more—experienced its most robust first quarter since 2019. Compass attributes this trend to affluent buyers seeking to diversify their portfolios and exhibiting renewed confidence in the market.​

"Largely insulated by mortgage-rate fluctuations and driven by portfolio diversification strategies, this highlights renewed confidence among luxury buyers and underscores the broader generational wealth underway," Compass noted.​

Cash Transactions Dominate

A significant factor contributing to this surge is the prevalence of all-cash transactions. In the first quarter, 58% of sales were all-cash deals, with the figure escalating to 90% for properties priced over $3 million. This trend indicates that high-net-worth individuals are less affected by fluctuating mortgage rates, opting instead for cash purchases to expedite transactions and potentially secure favorable terms.​

Mid-Market Segment Faces Challenges

Conversely, Manhattan's mid-market segment, encompassing properties priced between $1 million and $3 million, experienced a 10% decline in signed contracts. In contrast, properties in the $500,000

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