The upscale real estate market in New York City has more than survived the financial downturn–it is thriving. According to a new article in The Wall Street Journal, prices in the luxury property market continue to rise thanks to a number of high-profile deals in the past year. Commenting on the story, The Real Deal notes that luxury properties in the city are being snapped up at such a fast rate that “the market has begun to perform as well as it did during the market’s peak”.
There are a number of reasons for this, but one big driver is international buyers. Amongst the major cities in the world, New York City retains its crown as the most important financial and cultural hotspot, and the bragging rights that a NYC pad affords foreign investors cannot easily be duplicated in other major cities. Thus it is no surprise that Russian buyers are snapping up properties in the city.
Additionally, new visa rules that allow foreigners visas if they invest $500,000 or more in the American economy is encouraging more wealthy immigrants to come to the United States, and what better place to come to than New York City?
The market for luxury properties is quickly becoming a seller’s market, as properties in the Time Warner Center are starting to sell for over $10,000 per square foot. With Central Park at the property’s door as well as a luxury shopping center and midtown just a short jaunt away, there is plenty of reason for this Columbus Circle property to be in high demand with high flyers.
Will property prices continue to rise? The sky is the limit for the city’s skyscrapers, and even as the American economy struggles, the property market in NYC is giving investors ample opportunity to make money in the city’s real estate.