Real Estate Takes off in the Year 2017

The New York City real estate market has always set the precedent for real estate developers, investors, and agents worldwide. As the first month of 2017 comes to a close, there are evident patterns of the New York City real estate market seeing much growth in the upcoming months throughout the year. Real Estate developer Larry Silverstein states that “the variety of financial expertise and consideration and safety is so great that United States is No. 1, and No. 1 in the states continues to be New York” (3).

The are are two main contributions to the sudden growth and change in the real estate market. One is the change of both the demand and increase in technology in the industry. There is no doubt that both architects and real estate development pioneers have affected the demand for new developments and a higher interest for investors.

Even amenities provided for by the city contribute to a higher cost of living, newer developments, stimulation of the economy, and advancement of the real estate industry. Ivan Pereria, a journalist for AM New York writes that “new skyscrapers are poised to shoot to the sky, and revamped public amenities are slated to open” (1).

The article continues to say that public amenities and developments such as transit, public parks and gardens, and neighborhood maintenance affect the attraction and demand for new residents. For example, the Metropolotain Transportation Authority recently unveiled its latest project: the Second Avenue Subway. This not only gives thousands of residents, tourists, and workers easier access to the Upper East Side and Yorkville neighborhoods; but it also creates much value for both real estate investors and developers.

This is an incredible opportunity to invest into property on the Upper East Side. With accessibility comes attraction, and with attraction comes residents, and with a higher residential demand comes higher prices. It will would be a wise investment to buy where there will be a future increase in demand. Pereria continues to write “The opening of the Second Avenue subway line and recent extension of the No. 7 train into the West Side will make the areas more attractive for home hunters, according to StreetEasy” (1).

Photo Via New York Times

Another neighborhood that has seen a lot of traction in the past year is Hudson Square. This neighborhood has become increasingly popular for investors and the area itself is projected to grow in value a lot over the course of the next couple of years. Hudson Square is situated next to TriBeCa and SoHo: two neighborhoods that are extremely rich in both in capital and demand by consumer. The accessibility alone to these popular neighborhoods in enough to drive up the demand in Hudson Square from both developers and investors. There have been a lot of rezoning laws that have made new developments for condos and schools possible. “The 20-block rezoning… is also altering the streetscape by allowing more apartments. “The change here has been intense,” Ms. Faust [a long-time Hudson Square resident] said” (2). Ultimatley, this will increase the population and change the age demographic of the residents who are attracted to living there. Once there are more public amenities in place, this will change the demand and once again prices will increase. Before a new surge of growth, it is a great time to invest in property in the Hudson Square area.

Speaking to the luxury market, long time developer Larry Silverstein shares what makes a property increase in value and what developers look for when investing into new properties so that they have the biggest return on investment. “Space. And first is location, right? And a place that has everything I could want exactly. For example, I want to be in a neighborhood where I feel very safe, very comfortable where the surroundings present the things that I like to see; the things that I like to eat; the things that I like to buy; the things that I like to luxuriate in; things that make me happy” (3). Much of the value of a property is in fact found in the location of the property and the perceived value of the location to the consumer. This could mean public entities as well as amenities that the building provides.

The New York City real estate market is so saturated with developers, that becoming a prominent investor and name has become increasingly difficult. Larry Silverstein states “I enjoy taking advantage of what I like to think are unique opportunities… I look at New York and I say to myself land is becoming infinitely more rare, and more and more difficult to find. So where you have an opportunity to acquire a piece of dirt, to acquire a piece of land, that you can put away for tomorrow, now’s a pretty good opportunity to do so” (3). That being said, when there is a neighborhood that is projected to increase in value, like Hudson Square or the Upper East Side, it is the best time for buyers, investors and developers alike to take full advantage of the market and the rare opportunity to have a successful return on investment.

Written by Kylie Keller