This city’s enduring appeal is a rare constant in our tumultuous world.
Something is different. At holiday parties, at dinners, in galleries, on the sidewalks, everywhere I go and no matter who I’m with, the energy feels electric. Since the election, there is more positivity about business. New Yorkers are optimistic – even excited – about 2025. And I am one of them.
2024 was a surprising year for real estate. You would expect all the headlines about the Fed, election and war would have translated to a down market. Not in New York. Summer is typically a quieter time, as it should be, and yet July and August brought a 43% increase in contracts from the year before. The momentum has continued through Q4 with sales activity soaring after the election. November was one of the busiest months in a decade, particularly for new development and luxury properties – condo sales above $5M were up nearly 90%. So far, December is keeping the pace.
My team has been busy advising buyers, sellers and developers. We’re doing what we do best, scouring the city for the right investment opportunities, for perfect pieds-a-terre and primary residences, for prime development sites and trophy assets befitting our clients’ global portfolios. There is no better investment than New York.
I won’t inundate you with more data but I will leave you with my key takeaway from the reports and my own day-to-day experience: Demand is truly greater than supply right now and that will continue in 2025. The best properties are selling before they are officially listed. The new development pipeline is still woefully thin. The market for exceptional properties has never been more competitive. New York City’s enduring appeal is a rare constant in our tumultuous world – here to stay and only getting better.
There isn’t enough new development to choose from. When it comes to beautifully designed projects in a great location like the Upper East Side or Tribeca, developers know they have a scarce product and they’re holding firm on pricing. Prices are high but we are finding many worthwhile opportunities.
There is negotiability on Billionaire’s Row and in Manhattan’s best prewar coops, where prices reflect relative value.
THE SURREY - $50,000,000
This iconic Upper East Side hotel has been reimagined as the city’s most exclusive new residence and private club. The penthouse is the last available residence. A favorite.
111 W 57TH - $22,750,000
The 43rd-floor residence is a full-floor midway through the tower. Recent trades in the building reflect negotiability. Classic elegance.
550 PARK AVE - $9,500,000
This beautiful coop is in a prestigious building in a prime location. It’s well-priced and presents value per square foot compared to new development. This is a smart, long-term investment in New York.
2025 will be a transformative year for New York City real estate.
Developers are snapping up office properties with plans to convert to residences. While not every commercial building lends itself to great residential layouts, there are some intriguing projects underway like The Flatiron Building. Most are large-scale with potential for hundreds of units. We will likely have a burst of inventory below $5M in the next few years.
Manhattan needs its next great branded residence. The Surrey nearly sold outbefore its marketing launch. The Armani Residences are all spoken for. But not every hotel-condo is a success. I believe boutique scale is best – intimate, private and expertly serviced.
The Midtown South rezoning could shift the city’s center of gravity and bring thousands of new units. NoMad is already hot. Our sell-out at the Ritz-Carlton in 2023 set price records and we’re still getting calls from buyers who missed out. Keep your eyes on this neighborhood. We certainly are.
