Rising interest rates, tariffs, and geopolitical uncertainty are giving pause to many domestic luxury buyers in New York City. Yet a specific cohort of international investors continues to acquire high-end properties with a clarity of purpose that many domestic buyers lack, according to Mukul “Micky” Lalchandani, founder and principal broker of Undivided, a boutique NYC residential real estate advisory firm specializing in luxury condos and new developments above $5 million.
The shift in buyer demographics is stark. Before the pandemic, buyers from China represented close to 75% of all-cash luxury transactions in New York. That changed sharply after 2020, as developers who had structured entire pre-sale campaigns around Chinese buyers found their audience vanishing. What has replaced that cohort is more varied, with high-net-worth individuals from India becoming one of the most active international groups. According to the National Association of Realtors, Indian buyers purchased approximately 4,700 US homes worth $2.2 billion between April 2024 and March 2025, ranking among the top five foreign buyer groups nationally. India recently overtook China as the largest source of international students at US Ivy League institutions, a trend that Lalchandani sees mirrored in luxury transactions.
“They are focused on the long term,” Lalchandani says. “The political noise that is giving domestic buyers pause does not register the same way for someone who operates in a complex environment at home. They are buying with a 10 to 15-year lens.” This longer time horizon changes the evaluation framework. These buyers are not trying to time a rate cycle; they are asking about a building’s resale profile in a decade, the future buyer demographic, and whether neighborhood supply dynamics support long-term appreciation. Lalchandani applies this same approach through the Undivided Value Index, a building-level scoring system that evaluates condominiums across eight weighted categories, including financial health, absorption dynamics, and resale liquidity.
The preferences of these international buyers are reshaping what developers build. The amenity packages that defined the previous cycle—large communal floors designed around shared spaces—are being replaced. New developments like 212 Fifth Avenue are conceived around private club concepts: residents-only access, whiskey bars, Zoom-ready private conference rooms, and outdoor terraces attached to individual units. The home office is now a baseline requirement, not a floor plan bonus. Buyers are also requesting private gym installations within the unit, separate from building amenities. The preference is for consolidation: fewer shared walls, fewer shared spaces, and more control over the environment.
These shifts have real consequences for buildings designed around older buyer assumptions. “Before, a buyer wanted a second bedroom for a child,” Lalchandani notes. “Now they want a separate home office. The footprint requirements have changed, and buildings that were designed for the previous buyer profile are having to reckon with that.”
Geographically, the current cycle is concentrating downtown, a departure from the Billionaires Row era on 57th Street. Record transactions at 150 Charles Street, 140 Jane Street, and 80 Clarkson reflect a structural preference shift: buyers want walkability, proximity to restaurants, and real neighborhood infrastructure. Midtown around Central Park draws tourists but lacks the everyday density that buyers who plan to actually live in the city are looking for. Downtown delivers that.
However, markets driven partly by international capital can move in ways that are harder to predict than domestically driven cycles. These buyers are long-term holders by design, but if their outlook shifts, resale liquidity at the upper end of this market can thin quickly. That is not a reason to avoid the market, but a reason to be selective about which buildings to buy into. Fundamentals—absorption rate, sponsor health, and building financials—matter more than the view.
For domestic buyers trying to make sense of a volatile market, the international cohort offers a useful reference point. The question these buyers are asking is not whether to buy, but which building holds its value when it is time to leave, and whether the data supports the decision. That discipline, regardless of where a buyer comes from, is what separates a well-advised acquisition from an expensive mistake.
