Back HomeThe Foreign Investor’s Continued Influence
New York City is no stranger to the foreign investor, especially when it comes to real estate. Manhattan is the epicenter of American condo investments; and there seems to be no slow in the market for that demand anytime soon. Phil Hall writes that ” The surveyed real estate executives [states] that foreign investors [will] have the biggest impact in the city’s residential market (57 percent), followed by the hotel sector (47 percent), office buildings (37 percent) and retail (30 percent)” (1). Since the 2008 housing crisis and the rise of ultra high end luxury condo developments, foreign investors from both Russia and China have dominated the investment pool, accounting for more than 50% of investors.
Although to this date much of the spotlight has been placed on Chinese investors, that is slowly shifting towards the middle eastern investors. More specifically, real estate has seen growth from India and other countries with a growing middle class (2). Recently, many of the English-Speaking Indian investors looking into the New York market, are those that are priced out of the London market. The Indian government does limit the amount of abroad investments per capita to $250,000. Even though investors are restricted to a numerical limit annually, obviously investors want to get the most for their money and make their investments worthwhile.
Foreigners often look to Manhattan as a “relatively” stable luxury real estate market. Forrest Cardamenis writes that “The continued interest in New York’s most expensive [luxury market] speaks to the continued safety of investment in the city’s real estate” (3). As long as there in continued stability in New York City real estate, there will always be a demand for developers, real estate agents, and property managers alike.
(1) National Mortgage
(2) The Real Deal
(3) Luxury Daily
