New York City is considered the cultural and financial capital of the world. In addition to being the global influential center, New York is also known world over for its real estate. With a population of over $8.5 million, growing business opportunities, and a strong local economy, local demand in real estate sales and rental markets continue to grow. As a result, New York city has become a popular target for foreign investors that want to take advantage of the city's stable and active real estate market. The turbulence in global financial markets has triggered a substantial shift in assets to less volatile holdings, including real estate, with New York being the prime destination for investors looking for a safe haven.
THE PRIME TARGET
Foreign purchases of U.S. real estate have soared since the financial crisis, jumping to $87.3 billion of completed deals in 2015, from less than $5 billion in 2009, with New York remaining the top target market worldwide, according to a survey by the Association of Foreign Investors in Real Estate. New York outranked London, Los Angeles, Berlin and San Francisco as the top destination globally for foreign investors. The U.S. also ranked first for countries with the best opportunity for price appreciation in 2016, followed by Brazil, Spain, Ireland and the U.K., the AFIRE survey showed.
ThE MARKET
New York real estate prices have increased significantly over the past few years. According to Douglas Elliman's Q4 2015 Manhattan Report, the average home price in Manhattan increased 12 percent increase over one quarter, and the median price is up 17.1% from the year ago quarter. Real estate prices in Brooklyn and Queens have also seen big increases. Supported by a strong rental market, the overwhelming amount of investor demand and the lack of supply, New York remains the prime destination for real estate investment. .
Investment
Manhattan is the most attractive, most stable and most recognized market in the US. The recent Knight Frank Wealth Report 2016 ranks Manhattan as the top real estate market in the world based on factors including economic environment, political climate, knowledge and quality of life. Globally, Manhattan is a bargain when compared to cities like London, Paris and Hong Kong. Foreign purchases of U.S. real estate have soared since the financial crisis, jumping to $87.3 billion of completed deals last year, from less than $5 billion in 2009. The U.S. also ranked first for countries with the best opportunity for price appreciation in 2016, followed by Brazil, Spain, Ireland and the U.K, according to a report by the Association of Foreign Investors in Real Estate.
Education
New York’s status as the country’s most sought-after destination for college education is no accident. Smart municipal government has transformed New York City into the place where the best and the brightest students want to be. New York city is home to over 110 public and private universities and colleges including world renown Columbia University, an Ivy League university in northwestern Manhattan and New York University (NYU), a private research university.
The New York City public school system is the largest in the world with more than 1.1 million students in more than 1,700 public schools with a budget of nearly $25 billion. According to Census Data, NYC spends $19,076 each year per student, more than any other state. New York also has some of the nations best private schools and boarding schools including: Riverdale Country School, The Chapin School, Dalton School, and Trinity School.
Cultural Hub
New York City is a global city, a major hub for commerce, finance, media, art, fashion, research, technology, education, and entertainment. New York is a melting pot of different cultures, providing the opportunity and privilege of experiencing some of the most inspired art, theater, food from people everywhere. The individual fashion and personalities are so unique to the city. Manhattan and its neighboring boroughs are home to some of the world’s best restaurants, museums and attractions.
Neighborhood
New York is not just a destination, it is also a home to more than 8 million residents. New York is a city of neighborhoods. And while there are nearly endless options for eating, sightseeing and shopping throughout the five boroughs—Manhattan, Brooklyn, Queens, the Bronx and Staten Island—the City derives its personality from hundreds of small communities whose cultures make them feel like cities of their own.
Clevis is here to help our clients find opportunities and navigate the purchasing process. Schedule a consulting session to learn more about the local market and let us be your guide on this rewarding endeavor.