While economic headlines continue to signal turbulence—rising inflation, stock market swings, and trade policy uncertainty—one sector remains remarkably resilient: luxury real estate. In fact, ultra-high-net-worth individuals are not just holding steady—they’re going all in.
Take entrepreneur and tech founder Dan Herbatschek. In just a few short months, he transitioned from apartment-hunting for his family to deploying over $20 million into Manhattan real estate. His rationale? Real estate offers long-term security and stability that volatile markets can’t match. "The chance of taking a hit in the stock market is too high for the reward,” he noted. “Real estate is safer, less volatile.”
Herbatschek’s $12.25 million purchase of a five-bedroom Upper East Side condo is just one of several multimillion-dollar contracts he’s signed in 2025—part of a broader trend that’s defining this moment in the market.
$10M+ Deals Are Surging Nationwide
Despite a generally cautious real estate climate, the ultra-luxury segment is on fire. From February 1 to May 1, sales of homes priced at $10 million and above have surged in key markets:
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Palm Beach: up 50%
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Miami-Dade County: up 48.5%
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Aspen: up 43.75%
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Los Angeles County: up 29%
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Manhattan: up 21%
The appeal is clear: luxury real estate offers a tangible, appreciating asset—and one that delivers both lifestyle and legacy. “It’s a safe place to park capital and ride out the chaos,” says Dana Koch of the Corcoran Group, who recently brokered two deals in the $50 million range.
Record-Breaking Sales and Billionaire Moves
The headlines speak volumes. In April, a massive compound in Naples, Florida, sold for $225 million—the second-highest home sale ever recorded in the U.S. That same week, billionaire David Hoffmann picked up an $85 million estate nearby and is now in contract to buy the adjacent property, bringing his total to just over $100 million.
In Miami, hotelier Vladislav Doronin sold his Star Island estate for $125 million. In Los Angeles, Australian billionaire James Packer dropped $110 million on a new mansion. Meanwhile, in New York, Christian and Emily Crompton-Candy closed on a $46.9 million triplex at 111 West 57th Street.
And in Palm Beach, notable deals include:
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Bren Simon’s $51.42 million purchase from Andrew Farkas
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Ric Elias’s $73 million waterfront sale
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David MacNeil’s $55.5 million acquisition of an adjacent Manalapan lot—on top of a $38.5 million deal in the same neighbourhood
MacNeil summed up the sentiment: “There’s really no bad time to buy great properties… Smart money chases excellence.”
A Tale of Two Markets
While trophy properties are flying off the market, the mid-tier luxury sector is seeing softness. In Miami, homes under $20 million have seen price reductions of 10–20% since the onset of the trade war. Agents confirm that many traditional buyers are taking a wait-and-see approach, uncertain about construction costs and future market conditions.
But at the top? Confidence reigns. Buyers are undeterred by short-term headlines. Whether it’s a penthouse in Vail (like Todd Green’s $17.8 million slopeside purchase) or a landmark estate in Palm Beach, today’s elite buyers are focused on quality, security, and long-term value.
As Coldwell Banker’s Jade Mills put it, “For my clients, it’s business as usual—if not more aggressive than before.”
Final Thoughts
For those with means, 2025 is proving to be a year of decisive action in the luxury market. These buyers aren’t reacting—they’re strategically positioning themselves for the future. Real estate, particularly in the most coveted zip codes, remains not just a lifestyle play but a powerful hedge and a smart diversification strategy.
And as one buyer aptly put it: “No one ever regretted buying the very best.”
Source: The Wall Street Journal
