M
anhattan's luxury real estate market is experiencing a resurgence, defying the downturn in the stock market. According to reports from New York City brokerages compiled by CNBC, the ultra-high-end market saw its best first quarter in six years, with properties priced above $20 million leading the charge.

    A notable trend is the prevalence of all-cash deals among high-net-worth buyers, who are taking advantage of Manhattan's reputation as a safe haven for their wealth. In the first quarter, 58% of sales above $3 million were made in cash, while units priced above $5 million saw a 49% year-over-year increase.

    Industry insiders like Nicole Gary, a Keller Williams agent, attribute the uptick to limited high-end inventory and clients' desire to move their wealth from financial markets into real estate. "People always feel that Manhattan real estate is a safe bet," Gary said. "It's a hedge against inflation, and it's a place where people feel safe when you know the stock market is volatile."

    The city's overall real estate market is also showing early strength, with closed Manhattan sales exceeding last year's quarter one sales by nearly 29%. However, this growth is largely driven by the higher end of the market, with sales above $5 million jumping by 49% year-over-year.

    Increasingly strict back-to-office mandates on Wall Street and beyond are bringing high earners back into the city, while the "great wealth transfer" – the intergenerational transfer of trillions of dollars from baby boomers to their offspring – is also contributing to the luxury market's resurgence. However, not all segments of the market are experiencing growth, with mid-market sales lagging behind.

    Gary notes that buyers in this range are more risk-averse than ultra-high-net-worth clients, who often own multiple homes and pay in cash. As a result, the luxury market is "carrying the team" this year, while mid-market sales struggle to keep pace.