The Real Deal New York

As Euro weakens, European investors are leaving Downtown

Apartment prices are at an all-time high in the Financial District, causing investors to cash out
February 26, 2015 08:05AM

European investors are cashing out of the Financial District as the Euro weakens and apartment prices in the area are at an all-time high.

Many European investors bought their units after Lehman Brothers crashed in 2008, the New York Daily News reported.

Since then, the situation has changed. The average price for an apartment in the area was more than $1 million in the fourth quarter of 2014, according to the newspaper, and the average price per square foot in the area rose 11 percent since 2013 to $1,192.

“I have about 20 exclusives on the market right now that are all owned by Europeans. They would be out of their minds not to sell,” luxury broker Richard Nassimi told the Daily News.

Now is also a good time to sell, due to a large influx of new luxury condo units that will hit the market in the coming year and a half and could drive down prices.

“Even if these guys sold for exactly what they paid, they could still be getting 30 percent returns on their money because of the exchange rate,” Daniel Hedaya, president of brokerage Platinum Properties, told the newspaper. “It’s pretty incredible.” [NYDN] Claire Moses