What is next for New York City Real Estate?
New York City Real Estate Developers have nearly exhausted real estate and land on new ground in Manhattan and much of Brooklyn. So where will the next trends in the industry be? What areas in New York and the boroughs could see a new rise in real estate development and renovation? With technology at the forefront of everything in business, how will the real estate industry change or adapt?
Well, to start, developers are eagerly expanding into different boroughs to develop the future of real estate. The New York Times reports that The Bronx could be the next place where buyers seek to go to get “everything on their wishlist.” In the article, it states that The Joyners had looked in both Brooklyn and Queens before heading up to The Bronx” (1). One of the factors that is key for buyers is to be close to transportation options. This gives buyers the flexibility that they need and the convenience they are looking for. Real Estate moguls will often follow transportation lines when investing in land to build on, so the property itself becomes more accessible, more valuable, and more likely to gain attraction from prospective buyers.
The Real Deal reported that in the past quarter, sales are up in both Brooklyn and Queens. In the published report by E.B. Solomont, she writes “The number of sales in Queens jumped 17 percent during the quarter, compared to the prior year, followed by Brooklyn, with 15 percent growth, the Real Estate Board of New York reported. Sales in Manhattan, the most expensive borough, rose just 6 percent” (2). In addition, the report states that “Brooklyn, which saw prices jump 17 percent, is getting closer to changing that calculus. The borough’s median price hit $775,000 during the second quarter. In Queens, the median price rose 7 percent to $481,000, while citywide the median price rose 8 percent to $630,000” (2).
Antonia Watson of Watson International has a great investment-worthy apartment located in Bushwick, Brooklyn. Bushwick has seen a lot of traction and attention recently from real estate developers, potential buyers, and those looking to reinvent the neighborhood (through restaurants, bars, and shops). It is a great time to buy because prices in Brooklyn will likely continue to rise. The bidding war that she received on her listing is testament to the trend for investors and developers to seek properties farther out in the boroughs where they anticipate a promising financial upside and they can visualize the future of the neighborhood.
Technology has changed the way consumers purchase most everything, but it has yet to drastically shift the way people purchase real estate. Until now. New York Daily News reports that international real estate and startup tech companies are beginning to explore the world of virtual realty as a way for potential buyers to look at properties with ease. Instead of having to attend multiple open houses, buyers can now explore the realm of the virtual, even before the development is complete. Nest Seekers teamed up with a local NYC virtual reality company Mythic VR to “let potential buyers explore every nook and cranny of properties under construction. Users put on a headset that fully covers their eyes and move hand controllers to walk around the property” (3). Both companies wanted to give users the most realistic experience as possible. Purchasing a home is a very personal thing, so software developers were careful to ensure that the amenities were more tangible. NY Daily News reports that “the rendering is so exact that users can physically turn on light switches and pull up the blinds. During the experience, they can also check prices and other details about the apartment” (3).
A source from Inman highlights the importance of technology in the industry’s future. Amber Taufan for Inman writes that “mobile [phones are] still ultra-hot and marketing automation is still on the rise, but real estate leaders aren’t as bullish on the future of virtual reality (VR) or artificial intelligence (AI) emerging technology in the industry.” In a semi annual Thought Leader Servey conducted by Inman, both marketing automation and virtual reality are the “key challenges top real estate industry executives face” (4). Whether or not the leaders in the real estate industry will embrace these new trends has yet to be determined by the demands of the potential buyers. Ultimately, no matter how advanced technology becomes, the industry consensus seems to be that with the exception of overseas site unseen deals, most buyers want to see properties in person before signing on the dotted line for them.