Why Foreign Real Estate Investments in New York are Booming
The New York real estate market is considered one of the most viable and safest options for foreign investors. According to a survey by the Association of Foreign Investors in Real Estate, New York is second only to London in its popularity among foreign investors. 2017 was a record-setting year for the New York City real estate market with the average price of a Manhattan apartment appreciating by 50% over a period of 5 years. 2018 is shaping up to be equally promising with the continuing appreciation of the housing market and the growing number of available properties in the big apple. Lowering interest rates also mean numerous mortgages are becoming affordable, likely to motivate a large number of local and foreign buyers.
Krypton Global Investments breaks down the key reasons behind the growth of the dynamic New York Real Estate market:
Significant Capital Appreciation:
Manhattan and Brooklyn real estate prices have experienced double-digit percentage price growth over the last few years. The long-term trend for the New York real estate market has been primarily positive with short-term fluctuations caused by socio-economic events like the 2008 recession.
Strong Rental Market:
New Yorkโs limited size means it is unable to effectively cope with the rising demand for housing units. While the demand to live in New York city increases rapidly year over year, the supply of property is growing at a slower rate, this, in turn, has led to an increase in rental prices.
As home prices are expected to rise in the next few years in New York, the equity cushion for new mortgages will grow quickly. Prices remain in balance with local income meaning the chances to default are just average. A growing number of viable mortgage options are available to potential investors.
Quality of Life:
New York remains one of the most coveted cities to live in. Vibrant neighbourhoods, state of the art infrastructure and a thriving art and theatre scene make New York, a lead metropolitan city of the world. While New York is known for its fast-paced lifestyle, a sense of community and tranquility can be found in its boroughs, namely Brooklyn and Queens.
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