The luxury real estate market split in 2025 is sharper than ever. While trophy homes are flying off the market, mid-tier luxury listings are lingering longer, burdened by rising interest rates and fewer qualified buyers. This trend isn’t just anecdotal; it’s backed by national reports, local data, and real-world examples that highlight the growing divide.
In this post, we'll uncover why all-cash purchases are dominating the high-end segment, what this means for both buyers and sellers, and how you can navigate the market strategically.
What’s Fueling the Luxury Real Estate Market Split?
In Palm Beach, luxury condos priced above $15 million are selling within days, usually to cash buyers. At the same time, homes in the $3M–$5M range are seeing increased days on market and price reductions. This trend is clear across other prime South Florida markets, like Boca Raton and Miami Beach.
The reason? Affluent buyers with liquid wealth aren’t phased by borrowing costs. They’re seeking rare, move-in-ready homes in top-tier locations. Meanwhile, buyers relying on financing are more cautious, which slows down the mid-range luxury segment.
The Impact of Interest Rates
High borrowing costs are reshaping the way buyers approach real estate. With 30-year jumbo mortgage rates topping 7%, many are either downsizing their budget or delaying purchases. However, cash buyers are stepping in to fill the gap.
According to Coldwell Banker Global Luxury’s 2025 Mid-Year Report, 96% of agents reported all-cash purchases as stable or rising—highlighting a major behavioral shift among the wealthy.
Further, the report notes a growing divide between the ultra-rich and the merely affluent. A survey of over 200 luxury real estate agents revealed that ultra-wealthy buyers (net worth $30M+) continue to buy high-end properties, largely unaffected by economic uncertainty, while affluent-but-less-wealthy buyers are more sensitive to interest rates and moving cautiously.
Just over 50% of agents observed a slight or substantial increase in cash deals, and only 3.9% saw a decrease in all-cash purchases during the first half of 2025.
Who Are Today’s Luxury Buyers In South Florida?
The Knight Frank Wealth Report reveals that global ultra-high-net-worth buyers are increasing their residential holdings, with 49% of purchases over $10 million completed in cash. These buyers often own 3 to 4 homes worldwide, prioritizing privacy, exclusivity, and investment diversification.
Why They Choose Real Estate
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Tangible, inflation-resistant asset
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Generational wealth preservation
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Lifestyle value (location, prestige, privacy)
Many are acquiring properties in tax-friendly, economically stable markets like South Florida, where no state income tax, access to luxury amenities, and year-round sunshine make cities like Boca Raton incredibly appealing.
Real-World Example: Grant Cardone’s $235M Cash Deal
In July 2025, entrepreneur Grant Cardone made headlines for his $235 million all-cash purchase of 101 Via Mizner, a luxury condo tower in Boca Raton. This landmark acquisition underlines the influence of cash-rich buyers in today’s market.
Investors and buyers with cash are rewriting the rules of engagement in South Florida real estate.
What Sellers Need to Know in the Luxury Real Estate Market Split
How to Attract Cash Buyers
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List at the right price from day one
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Offer move-in-ready condition
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Provide detailed disclosures and documentation upfront
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Partner with agents who specialize in luxury marketing
Understand Buyer Expectations
Cash buyers are looking for:
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Convenience and speed
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Unique design or limited availability
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Properties with minimal renovation needs
If you’re selling in the $2M-$6M range, marketing your home as a value opportunity can help differentiate it from overpriced or poorly presented listings.
What Buyers Should Know
If you’re a cash buyer:
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Negotiate better terms (price, inspection, close date)
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Move quickly in competitive markets
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Prioritize off-market opportunities
If you’re financing:
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Get pre-approved for a jumbo mortgage early
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Work with agents who understand how to present financed offers competitively
Boca Raton Real Estate: A Market to Watch
With premier developments like Mandarin Oriental Residences, Alina Residences, and Royal Palm Yacht & Country Club, Boca Raton is one of the top cities where this split is playing out.
Properties over $10M are moving with few obstacles, while listings under $5M face more competition and negotiation.
If you're looking for guidance in this evolving landscape, contact The Mastropieri Group,Realtors® at (561) 544-7000 for expert advice tailored to Boca Raton’s high-end market.
Posted by Larry Mastropieri on
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