Contrary to popular assumptions about status-driven purchases, New York City's luxury real estate buyers in the $5 million-plus tier are increasingly approaching property acquisition as financial investments rather than personal indulgences. Mukul "Micky" Lalchandani, founder and managing broker of boutique NYC residential brokerage Undivided, reports that his clients—including tech founders, finance executives, physicians, and global investors—model exit returns before falling in love with a view and demand data on absorption rates and price per square foot.
"Bigger numbers mean bigger problems, potentially," says Lalchandani. "How I advise my clients is: you buy based on the exit. You're not buying a home based on your personal taste—you're buying based on the marketability for a future buyer down the road." This philosophy reflects a broader market trend where rigorous financial analysis takes precedence over emotional appeal, with buyers willing to walk away from deals that don't hold up under scrutiny regardless of prestigious addresses.
The current market conditions amplify this approach. In 2026, inventory above the $4 million threshold remains historically tight, with cash buyers moving quickly on limited options. Lalchandani emphasizes that the gap between publicly listed properties and actually available inventory is significant, requiring brokers to track which developers are quietly holding inventory and which buildings are nearing sellout. "If you're not on my radar when an off-market opportunity surfaces, I won't even be able to inform you," he notes. "You may lose the perfect home—one that never even hits Zillow."
Post-COVID preferences have further reshaped buyer priorities. Private outdoor terraces, home-office-ready floor plans, and single-unit elevator landings—properties where buyers have entire floors to themselves—have moved from preference to near-requirement. Privacy in both daily living and transaction handling has become a defining market feature. Lalchandani recalls negotiating a $17 million Central Park-facing property sale where the owner refused any press coverage, noting such discretion is now standard at this price point.
For value identification, Lalchandani steers new-to-market buyers away from television-famous neighborhoods toward areas delivering actual value. He cites a client who arrived convinced they needed SoHo but purchased a Gramercy penthouse for $7 million—$1 million below asking—in a new building with amenities. Four years later, comparable units trade near $8.6 million. The discount resulted from the building reaching a sales cycle point where developers prioritized absorption over pricing, a dynamic Lalchandani seeks across new developments.
"There are 900,000 buildings in New York City," Lalchandani observes. "Two apartments side by side in the same building can sell at very different prices per square foot. Being able to understand those nuances is what separates an asset from a liability." He concludes that the hardest part isn't finding an apartment but knowing which will make sense five years from now, as most properties look similar today but won't perform similarly in the future.
