Manhattan’s Luxury Real Estate Sector in 2025

Let’s delve into the latest developments in Manhattan’s luxury real estate market over the past month and year. We’re focusing on properties priced at $4 million and above, and the data reveals some compelling trends.

In January 2025, Manhattan’s luxury real estate market continued its robust performance, with 67 contracts signed for properties priced over $5 million, marking a 5% increase compared to the same period last year. Notably, sales of homes asking over $10 million surged by 85% annually. The average price per square foot experienced a slight decline, attributed to fewer contracts on Billionaire’s Row. Active listings decreased by 11% year-over-year, indicating a tightening market.

In February 2025, the momentum persisted, with 29 contracts signed on luxury properties priced at $4 million and above during the week ending February 9th. This activity underscores the sustained demand in Manhattan’s high-end real estate sector.

These trends reflect a thriving luxury market in Manhattan, characterized by increased transaction volumes and a competitive landscape for high-end properties.

Above are two visual representations of the Manhattan luxury real estate market for January and February 2025.

The Past Year in Review

Manhattan’s Luxury Real Estate Market: February 2024 to February 2025

Sales Volume and Contracts

•2024 Overview: The ultra-luxury segment witnessed a significant surge, with over 1,700 homes sold at prices of at least $10 million, marking a 350% increase from the previous year.

•December 2024: The market maintained its momentum, closing with 1,295 contracts for properties priced at $4 million and above, an 8% rise from December 2023.

•January 2025: The upward trajectory continued with 67 contracts over $5 million, a 5% year-over-year increase, making it the second-strongest January in a decade.

Pricing Trends

•Average Sale Price: December 2024 saw the average sale price for luxury properties climb to $7.9 million, up from $7.6 million in December 2023.

•Price per Square Foot: January 2025 reported an average asking price of $2,962 per square foot, a slight 2% decline from the previous year, attributed to fewer contracts on Billionaire’s Row.

Inventory Levels

•Active Listings: January 2025 experienced an 11% year-over-year decline in active luxury listings, marking the fourth consecutive month of double-digit reductions.

•Market Dynamics: The contraction in supply, combined with robust demand, has shifted leverage towards sellers, especially for well-priced and well-presented properties.

Notable Transactions

•Aman New York Penthouse: In July 2024, a penthouse at the Aman New York sold for $135 million, marking the city’s highest-priced residential sale of the year.

•277 Fifth Avenue: Early January 2025 saw a $20 million penthouse transaction, reduced from its original $23 million listing in 2017.

Market Outlook

The Manhattan luxury real estate market has demonstrated resilience and growth over the past year, with increasing sales volumes and rising average prices. The decline in inventory suggests a competitive landscape favoring sellers. As we progress through 2025, the market is poised for continued strength, driven by sustained demand and limited supply.