The first quarter of 2025 has proven that New York City’s real estate market is not only surviving — it’s adapting and growing with purpose. At Duke Properties, we view this moment not as a mere rebound from previous uncertainty, but as the early stages of a healthier, more discerning marketplace — one where quality, preparedness, and long-term thinking are finally taking center stage.
Manhattan and Brooklyn remain cornerstones of strength, especially in the luxury sector. According to the latest reports, contract activity in the $4 million-and-up range is averaging about 30 deals per week, dominated by move-in-ready condominiums. That’s no accident. With renovation costs now exceeding $700 per square foot, buyers are valuing efficiency and immediacy—prioritizing homes that offer comfort without complication.
NYC Real Estate: The Power of Turnkey Appeal
In today’s market, a well-maintained, move-in-ready property is gold. These homes aren’t just moving — they’re commanding prices comparable to the market’s peak a decade ago. In contrast, units in need of work are lingering, often facing steep reductions before they finally trade. This creates a new kind of market clarity: the value of turnkey condition is undeniable, and sellers who invest wisely in their properties are reaping the rewards.
Neighborhood Identity Drives Market Strength
New York has always been a city of neighborhoods, and in 2025, hyper-local dynamics are defining real estate success. Tiny, design-forward condos are thriving in the Lower East Side, while spacious three-bedrooms remain highly coveted in Tribeca and uptown. However, markets like Harlem, once booming with young buyers and brownstone enthusiasts, are recalibrating — down nearly 40% in contract activity since 2021.
This divergence isn’t cause for concern; rather, it highlights how essential it is for buyers and investors to know the identity and trajectory of each neighborhood. At Duke Properties, we’ve always emphasized this localized approach—understanding where trends are temporary and where value endures.
Rentals Fuel Sales as Competition Rises
The rental market, with its record-high median prices and limited inventory, continues to put pressure on those in search of long-term housing solutions. For developers and property managers, this signals a real opportunity to convert demand into meaningful sales, especially for units priced and presented appropriately.
The Luxury Sector: A Beacon of Confidence
Luxury contracts remain one of the market’s bright spots. Manhattan has seen consistent deal flow among high-end buyers, especially in neighborhoods with new development or top-tier amenities. These buyers are not only seeking property—they’re making lifestyle decisions tied to quality, community, and long-term investment security.
As the report notes, condos continue to outshine co-ops and older inventory, underscoring the premium placed on both design and convenience. This is a trend we at Duke Properties fully embrace. Our focus on modern living and thoughtful design is aligned with where this market is headed.
A Market Built for the Patient and Prepared
While we’re not seeing the double-digit year-over-year gains of the past, this stabilized environment is far from stagnant. It’s fertile ground for strategic buyers who know their priorities, understand the market, and recognize that in New York City, real estate is always a long game.
Even in the face of economic ambiguity and shifting federal policies, the fundamentals of our local market remain strong. In fact, we view this moment of relative calm as a rare opportunity for clarity—a chance for buyers and sellers alike to make decisions that aren’t driven by panic, but by purpose.
Outlook: Steady, Selective, and Smart
At Duke Properties, we believe 2025 is shaping up to be a year of smart moves. It’s not about chasing the highest bid or the fastest flip. It’s about working with trusted professionals, leaning into localized insights, and embracing the real value of New York real estate: location, lifestyle, and longevity.
Whether you’re a first-time buyer, a seasoned investor, or someone looking to make your next big move, there’s opportunity ahead — you just need to know where to look, and how to act.
Let’s make it happen — together.
— Albert Dweck
Founder & CEO, Duke Properties