Certain segments of Manhattan's market are thriving, others less so. Luxury, and high-end condos in particular, are especially attractive to foreign investors. This segment of the market is driving the rest of the market.
Shift to Real Assets - I am witnessing an urgency among affluent buyers, especially international ones, to anchor their wealth in tangible assets — and New York City real estate is at the top of the list. Investors are increasingly moving away from volatile paper assets (stocks, bonds) and prioritizing the stability of “brick” investments, particularly in globally recognized, high-demand cities like New York. Real estate here is not just a safe haven; it is a prestige asset with deep liquidity.
Investing in the Dollar - Considering the weakness of the dollar relative to other currencies, NYC real estate seems as if it is on sale. Investors from many foreign countries, especially those in parts of Latin and South America, Europe and Asia, are eager to hedge against political instabilities by holding US-based assets. The U.S. Dollar remains the global preferred currency for diversification and wealth preservation.
Acceleration Post-2024 - This year, geopolitical instability, economic uncertainty, and tighter capital controls in certain countries (Brazil, Argentina, parts of Europe) have accelerated the trend of moving capital here. Clients are relocating children for higher education, moving businesses, and using Manhattan real estate as an anchor for broader lifestyle shifts.
Emotional and Practical Motivations - While financial logic is key, there is also an undeniable emotional draw — New York carries unmatched glamour, influence, and a global “center of the world” perception. The NYC lifestyle - the cultural vibrancy, education, security, and connectivity - is an equally powerful motivator.
Looking into my crystal ball - All signs suggest that Summer 2025 will be an active, fast-paced season for NYC's luxury market. I expect particular velocity in sales of new developments and trophy assets that offer prime locations, impressive amenity packages, and views.
