The New York real estate market, known worldwide for its exorbitant prices, is undergoing an unexpected change after stricter regulations.
Several buildings in the city are for sale with discounts of up to 50%. What was an unexpected situation to happen until a few years ago now represents a unique opportunity for investors and buyers.
Impact on the New York real estate market
According to investment manager Maverick Real Estate Partners, in 2023, New York buildings with at least one rent-stabilized apartment sold for an average of $203,000 per unit, a 34% drop since 2019. Additionally, the value of rent-stabilized units has decreased by up to $75 billion.
Many factors are contributing to the decline in the New York real estate market, such as:
Rising interest rates:
The Federal Reserve has raised interest rates several times in recent months, making it more expensive to finance properties. This has reduced demand for properties in New York, leading to a drop in prices.
Over-supply:
There is an oversupply of luxury apartments in New York, especially in Midtown Manhattan. This is partly due to the construction boom that the city has experienced in recent years.
Changing buyer preferences:
The COVID-19 pandemic has changed the preferences of real estate buyers. Many now prefer apartments with more space and outdoor areas, which has decreased demand for smaller apartments in high-rise buildings.
Opportunities for investors:
Discounts on building prices in New York can be an interesting opportunity for investors. With a market recovery, prices could rise again, generating a significant return for those who buy now.
Recommendations for buyers:
- Do thorough research: before buying a building in New York, it is important to do thorough research on the market and the property in question
- Consider additional costs: in addition to the purchase price, it is important to consider the additional costs of maintenance, renovation, and taxes
- Seek professional help: it is recommended to seek professional help from a real estate broker or lawyer specialized in real estate law
The New York real estate crisis can be opportune!
The discounts on building prices in New York represent a unique opportunity for investors and buyers. However, it is important to do thorough research and consider all costs before making a purchase decision.