As we transition into 2025, the real estate landscape presents a nuanced blend of opportunities and complexities. Leading the way are emerging markets and resilient global cities like New York, which remain at the forefront of this dynamic setting. Over recent years, global wealth has not merely rebounded — it has surged. Strategic investment in real estate reflects a keen sense of value, precise timing and an emphasis on diversification across geographic locations and asset classes.
New York City’s luxury market exemplifies this resilience. Despite global economic pressures, 2023 witnessed sustained demand for luxury and ultra-luxury properties in the city. The prevalence of cash transactions underscored the leverage and confidence of these buyers.
According to data from Marketproof, by August 2024, cash sales in new developments had risen to 71%, up from a June 2024 low of 61%; while resales reached 68%, up from 65%. This growth surpasses historical norms, encompassing the broader market beyond luxury properties — defined at $4 million and above. Notably, these trends coincide with significant generational wealth transfers that are reshaping buyer behavior. As properties remain on the market longer, buyers are well-positioned to negotiate favorable terms, leveraging their liquidity as a strategic advantage.
The appeal of resilient global markets such as New York, London, Singapore and Dubai lies in their stability, infrastructure and established status as international financial hubs. These cities attract global investors due to strong legal frameworks, transparent property regulations and robust economies. Acquiring properties in these locations can be seen as a hedge against the volatility of less-developed or politically unstable regions. Consistent demand for luxury and ultra-luxury properties, bolstered by world-class amenities and cultural offerings, continues to position these cities as prime investment targets.
Significant transactions — such as the $115 million sale at Central Park Tower in June and the record $135 million penthouse sale at Aman New York in July — underscore the enduring appeal of ultra-luxury real estate. It feels like an era has passed since the first U.S. property surpassed the $100 million mark. The post-pandemic period has seen greater diversification within real estate portfolios, with many high-net-worth individuals (HNWIs) investing in multiple properties. Both domestic and international HNWIs continue to diversify their portfolios by investing in these premier markets. Cities like Dubai, Mexico City and regions in Southeast Asia have gained traction due to ambitious new development projects that signal confidence in their long-term growth potential.
Investing in resilient markets offers diversification benefits that extend beyond economic returns. These global cities are cultural and lifestyle centers featuring world-class dining, entertainment and educational institutions, which enhance their attractiveness to international buyers. Properties in these cities not only appreciate in value but also serve as personal assets, such as pieds-à-terre or secondary and tertiary homes. Additionally, steady inflows of foreign capital into these cities help maintain liquidity, providing investors added flexibility.
International and emerging markets
In the U.S., the presidential election cycle introduces uncertainties, particularly with potential changes in taxation and regulation. Savvy investors recognize that regulatory shifts can spur both domestic and international investment activity. While some await clearer policy directions, others take a proactive approach, navigating ambiguity to capitalize on emerging opportunities.
Emerging markets are experiencing similar trends, with HNWIs identifying potential in previously overlooked regions. For those looking to diversify into emerging markets, an approach rooted in local expertise is essential. Each region’s regulatory landscape and cultural context shape its investment potential. Evaluating mid- to long-term growth prospects, return potential and lifestyle considerations — especially if personal use is part of the strategy — is vital.
Investors should prioritize regions with a burgeoning middle class, stable economic foundations and sectors experiencing significant growth — particularly technology, which many of my clients actively seek.
While my primary expertise lies in residential real estate, significant developments are occurring in adjacent sectors. The office market continues to face challenges; however, top-tier office spaces attract high-profile tenants.
Luxury retail — particularly along Madison Avenue — is also thriving. The revitalization of flagship stores and rapid sales of new residential projects, such as the Giorgio Armani Residences, highlight this resurgence. Madison Avenue’s ongoing renewal includes planned developments at 655 Madison Avenue by Extell, where a prior office tower was slated for demolition, and a hotel-condo project at 625 Madison Avenue by Related. A short distance north, The Surrey, an iconic Upper East Side hotel, has reopened with a condominium component, and potential projects at the I.M. Pei-designed Four Seasons on 57th Street reflect the vibrancy of this sector.
Real estate offers varied pathways for asset diversification beyond traditional residential investments. Commercial real estate — including retail spaces, office buildings and industrial properties — provides opportunities for steady income and long-term value appreciation. Mixed-use developments — which integrate residential, retail and office spaces — are increasingly popular for fostering vibrant community ecosystems. Real estate investment trusts (REITs) also offer an accessible way to diversify a portfolio without direct property management, appealing to investors seeking liquidity and passive income.
Internationally, properties in high-growth markets provide risk-balancing benefits by diversifying investments across different economic and political landscapes. Investments in Southeast Asia or parts of Latin America can expose investors to higher growth rates, counterbalancing slower growth in more established markets. Additionally, real estate in high-tourism areas, such as luxury vacation rentals, can generate substantial rental income and long-term appreciation.
As we move through 2025, the real estate market remains a complex, yet promising, domain.