With Global Insecurities Mounting, NYC Real Estate Market a Safe Haven for Foreign Investors
With a European debt crisis imminent and the continued destabilization of global political and economic atmospheres in the Middle East and Asia, the U.S. especially the New York City and surrounding real estate market remains a safe and stable alternative for foreign investors in both Commercial and Residential real estate property markets.
New York City in particular offers foreign investors a thriving real estate market that emerged relatively unscathed from the global and national financial instabilities of recent years. As one of the world’s top tourism destinations, New York City’s economy has continued to thrive in the midst of other major U.S. cities’ financial woes, establishing itself as a bastion of economic growth and strength. This continued growth has produced sizeable renewed interest inresidential, retail, hotel and commercial real estate, pushing vacancy rates down and property values up. In fact, according to the 2011 Knight Frank Wealth Report, which provides a “global perspective on prime property and wealth,”Manhattan is ranked the #1 real estate markets in the world. This ranking is based on factors such as economic environment, political climate, knowledge, and quality of life.
Manhattan in particular is widely touted as the most stable and recognized market in the U.S., drawing a wide range of investors who are interested in making long-term investments in NYC locations that have proven brand value and high rates of appreciation. Commercial and residential buildings in the centralized Midtown and Midtown South neighborhoods continue to draw large numbers of prospective tenants, creating a high demand and low supply dynamic excellent for investment opportunities. Additionally, several Manhattan neighborhoods including Chelsea, the Meatpacking District, and the West Village have begun to draw major market interest, diversifying the availability and type of properties on the market for foreign investors.
Office real estate in particular has attracted increasingly high rates of investment, contributing to the emergence of a competitive, stable market well suited for foreign investors. According to a recent NuWire Investor article, citing reports from the commercial real estate services firm Colliers International, “the Manhattan office real estate sector saw its highest level of investment activity since 2007, with 22 buildings sold and another 21 recapitalized for an overall transaction volume of $30.3 billion.” With the Euro currently on shaky ground amidst the European debt crisis, the burgeoning office real estate market in New York City is compelling in its ability to offer a dollar-backed investment opportunity disentangled from the potential inflations expected in Euro-dominated economies.
New York City has long proven to be a draw for foreign investors interested in long-term, stable investment opportunities in urban locations that have proven value and solid histories of appreciation. Current global financial insecurities notwithstanding, the NYC market continues to extend a vigorous and competitive atmosphere to foreign investors within one of the world’s centers for culture, arts, and business.
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