Investors who put money into a well-known New York City condo building would be doing slightly better than buyers of hog futures over a 10-year period, but their returns would trail those of folks who bet on gold.
Over the last decade, a portfolio of the city’s 100 best-known condo buildings put up compound annual growth of 6.5 percent, the Wall Street Journal reported. Comparing that return with other popular investments, the newspaper found that Gotham’s marquee condos fared better than the S&P 500 stock market index and hog futures, but couldn’t beat gold, oil futures or coffee futures.
That said, those high earners come with considerably more risk than real estate.
“The consistency of New York City real estate is something that is really hard to match,” Pete Culliney, director of research for CityRealty, told the Journal.