Walk by the views of the home’s gorgeous towers along the nickname Billionaires Row, a stretch on 57th Avenue that holds most of the gorgeous towers of Manhattan Super Tall in New York City on May 16, 2022.
Spencer Platt | Getty Images News | Getty Images
Sales of Manhattan apartments rose 29% from the same period a year ago, new reports show that wealthy people evacuated from volatile stocks to buy real estate.
According to reports from real estate appraisers Miller Samuel and broker Douglas Elliman, there were 2,560 closed sales in the quarter, which rose from 1,988 a year ago. Total apartment sales increased further, up 56% in the same period last year to $5.7 billion.
Strength has been driven primarily by the high-end and luxurious characteristics of the market. Sales of over $5 million rose 49% at prices above $5 million, according to brokerage Compass. Compass said that since 2019, super-high ends of prices, or priced assets, have won the highest quarter.
“Mortgage rate fluctuations have largely been isolated and driven by a portfolio diversification strategy, which underscores the new trust among luxury buyers and the wealth of the wider generation ongoing,” Compass said.
Ultra-wealthy people tend to buy apartments with cash without needing a mortgage, so they are not often deterred by continuous high interest rates. 58% of quarterly sales are all cash, while more expensive apartments (over $3 million) see 90% of sales from full-speed buyers.
The weakest segment of the market was when brokers considered the “mid-sized market” of Manhattan real estate or $1-$3 million worth of assets. Signature contracts for these properties fell 10%, while lower-end properties have improved performance at prices ranging from $500,000 to $1 million, according to Compass.
Brokers say the new strength of Manhattan real estate is driven by both macro and micro powers.
The Manhattan real estate market has long been linked to the stock market, but with the city relying on financial markets for employment and wealth, apartment sales separated from the volatile performance of stocks in the first quarter. Brokers say the uncertain outlook for equities makes real estate and hard assets more attractive, especially in major wealth markets like Manhattan.
They also say back-to-office obligations from major banks and other companies are bringing more permanent wealthy buyers back to the city. The emergence of “Boomerang Wealthy” – Those who have moved to spots like Florida during the pandemic and are now returning to New York are also boosting sales.
“There’s been a noticeable movement of people returning from Florida and relocating from Los Angeles,” said Charlie Attias, a real estate agent at Compass.
We are also promoting sales of “large-scale wealth transfers.” Brokers say that as trillions of dollars are beginning to move from baby boomers to children and relatives, more buyers are children of wealthy parents who purchase with funds from trusts or family offices.
“We see a noticeable increase in activity from family offices, many of which are acquiring real estate as a long-term legacy asset,” said Cindy Scholz, a real estate agent at Compass.
Certainly, sales closed in the first quarter were usually signed and negotiated a few months ago, so March uncertainty about the market and economy may not be reflected in the numbers.
According to Jonathan Miller, CEO of Miller Samuel, the first quarter of 2024 was unusually slow, and the first quarter of 2025 looks even more appealing. Despite a 29% increase in sales, he said total sales were only 1.1% better than the past average over the past decade.
Still, the contract signed in March was a predictor of sales in the upcoming quarter, and was particularly strong for luxury. According to Douglas Elliman, contracts priced at over $10 million were tripled in March.
“It’s clear that Manhattan’s market is not only stable, but also thriving,” said Pamela Liebman, president and CEO of Corcoran.
