Top 5 Neighborhoods for Investing in Luxury Philadelphia Real Estate

Real estate in Philadelphia continues to be a lucrative investment for those looking into historic townhouses, stand-alones, and luxury condos. With over 150 unique neighborhoods to explore and home prices increasing in many of them, knowing where to find the best luxury real estate can be a challenge.

So if you’re looking to narrow down which neighborhood is right for you, keep reading. This guide will walk you through five of the top neighborhoods for luxury Philadelphia real estate.

Old City is the historic center of Philadelphia, with homes dating back to the early 1700s. It’s home to Elfreth’s Alley, one of the country's oldest roads, Independence Hall, the Liberty Bell, and some of the earliest theaters and meeting halls.

Located east of Center City by the Delaware River, Old City offers visitors and residents alike the chance to see where the Declaration of Independence was signed or stop by the theater where John Wilkes Booth performed. More than ten museums and historical institutes are in the area, including the National Liberty Museum and the Museum of the American Revolution.

Stunning 18th-century townhomes and renovated stand-alones are just some of the Philadelphia investment properties available in Old City. Last year, prices increased by just under 6%, with median listing prices of around $560,000. The market in Old City is not as competitive as it was last year, but this neighborhood features some of the most beautiful brick homes and luxury condos Philadelphia has to offer.

Walk a few blocks south of Old City, and you’ll enter Society Hill, a favorite of those looking for luxury Philadelphia investment properties. Sandwiched between Walnut Street and Lombard Street and overlooking the Delaware River, Society Hill is where visitors will find William Penn’s Washington Square. The park was part of the first city plan for Philadelphia and is over 300 years old. Residences and commercial buildings from the 1700s and 1800s rest atop cobblestone paths, making Society Hill feel quaint and scenic.

The luxury condos Philadelphia’s Society Hill offers range from charming $320,000 units to $5 million homes near Walnut and 5th. Those looking to invest in Philadelphia real estate will find Society Hill a primarily residential neighborhood, but with access to the Theater of the Living Arts, the Independence Seaport Museum, and Spruce Street Harbor Park. The market in Society Hill is considered highly competitive, with a median home price of over $630,000, up nearly 3.5% from 2021.

Continue south from Society Hill, and you’ll find Queen Village, another historic district with a trendy, cultural feel. Considered the oldest settled neighborhood in Philadelphia, Queen Village received settlers from Britain, Germany, and Poland in the 1700s. In the 1970s, Queen Village was renamed to honor Queen Christian of Sweden, who played a significant role in the neighborhood’s founding.

Now, Queen Village is a hip neighborhood that hugs the Delaware River. It’s a popular spot for shopping and entertainment, with multiple vintage shops, jewelry stores, and pop-up markets. Restaurant fare ranges from French to Asian to the classic Philly cheesesteak, and there are parks and family-friendly playgrounds to enjoy as well.

Towering multi-family townhomes list for anywhere between $850k and $3 million in Queen Village. For some of the best Philadelphia investment properties, look to Queen Village. In 2022, sellers have been listing homes at a median price point of $550,000, showing a 10% appreciation from 2021.

 

Chestnut Hill is housed in Philadelphia’s northwestern Garden District, where residents can connect with nature by visiting the Morris Arboretum, hiking through Wissahickon Valley Park, or taking part in the annual Home & Garden Festival. With art festivals, farmer’s markets, and more, Chestnut Hill is the perfect neighborhood for those who like to be active in their community.

Chestnut Hill is considered one of the more affluent neighborhoods in Philadelphia, with excellent private schools and parks. Residents can visit Germantown Avenue for an array of shops, casual eateries, and fine dining. It’s been a popular vacation destination since the late 1700s for its beautiful scenery and higher elevation. Chestnut Hill combines the best of Philadelphia suburban living with convenient city amenities with access to Center City.

The current market in Chestnut Hill is considered reasonably competitive. The median home listing price in 2022 is hovering around $675,000, with available properties ranging from quaint three-bedroom brick rowhouses to stately, seven-bedroom Georgian mansions.

 

Rittenhouse Square is one neighborhood in Philadelphia to which everyone aspires to move. Known as a wealthy neighborhood right at the edge of Center City, it centers around the expansive Rittenhouse Square park. Real estate investors looking for the best luxury condos Philadelphia can offer won’t be disappointed by what they find in Rittenhouse Square. The residential units in the neighborhood are mostly condos and apartments, attracting a large demographic of residents in their mid-to-late 30s.

Rittenhouse Square is the ideal place to call home with easy access to Center City’s restaurants, bars, museums, and parks. Residents interested in art and culture can spend a day at the Civil War and Underground Railroad Museum or the Curtis Institute of Music. Those who want to experience the best of the Philly restaurant scene should try Parc, a restaurant with seafood, pasta, and traditional American fare. Or, make a reservation at Zama, an upscale Japanese restaurant with exceptional ratings.

Currently, investors can expect properties in Rittenhouse Square to list for over $600,000, up only .5% from 2021. The market in Rittenhouse Square is considered mildly competitive r, as homes are staying on the market longer and selling closer to their listing prices.

Philadelphia’s top neighborhoods each have ample access to all the amenities a big city can offer. Residents can enjoy the stunning 17th and 18th-century architecture while visiting many historical museums. From art festivals to fine dining, Philadelphia’s Rittenhouse Square, Chestnut Hill, and others have a little bit of everything.

If you’re ready to find your perfect piece of Philadelphia real estate, reach out to realtor Douglas Pearson today.