NYC buys becoming family affair for foreign investors

Variety of factors driving global buyers to look beyond pied-a-terre investments

TRD New York /
Nov.November 13, 2015 05:09 PM

Foreign buyers have long been a mainstay of New York real estate, but it seems like their purchasing habits are revolving less around pricey pieds-a-terre that are left empty for much of the year.

Instead, driven by a variety of factories, many international buyers and now looking to buy homes for their families – turning their focus away from the ritzy gold coasts of the Manhattan market and rather laying roots in neighborhoods like the Far West Side, Long Island City and parts of Brooklyn.

Those factories range from political instability in Brazil to policy shifts in Russia to weakening economies in Europe and currency devaluations in China, according to the New York Times.

In turn, foreign buyers are conducting more due diligence than ever, viewing their purchases less as an investment and more as a lifestyle decision.

“We really want to raise our kids in a more relaxed environment, where they can be free and just walk to school without having to worry about safety,” Mauricio Amaro, chair of Santiago, Chile-based LATAM Airlines Group, told the Times.

While foreign buyers make up about 15 percent of the overall Manhattan residential market, their presence is much larger in the condo market – where they drive roughly one-third of sales, according to Jonathan Miller of real estate appraisal firm Miller Samuel. And they’re even more prominent buyers of new developments, where they buy roughly half of all units, Miller said.

That sort of prominence has placed foreign buyers under new scrutiny, with the de Blasio administration imposing new disclosure requirements on shell companies – the largely anonymous entities through which many high-end purchases are made.

Still, as global wealth increases and New York continues to be viewed as a safe bet – Both As A Real Estate Investment And A Place to live – the market for foreign buyers is only expected to ramp up alongside increasing condo inventory in the city.

“I’m waiting for the Indians to show up,” Raphael De Niro, an associate broker at Douglas Elliman, said. “I know they will because they have an exploding middle class and a strong economy, but they will be mostly focused on the $3 million and below range.” [NYT]Rey Mashayekhi


Related Articles

arrow_forward_ios
Global private real estate investment continues to fall as the coronavirus continues to force economics to a standstill. (Credit: iStock)

Private real estate investment deals tumble worldwide

Private real estate investment deals tumble worldwide
LA is one of the trickiest cities for institutional investors to understand. Here’s why

LA is one of the trickiest cities for institutional investors to understand. Here’s why

LA is one of the trickiest cities for institutional investors to understand. Here’s why
Cheung Chung Kiu is no stranger to big real estate deals (Credit: Wikipedia)

Mysterious billionaire who bought $262M London mansion is obsessed with blockbuster real estate deals

Mysterious billionaire who bought $262M London mansion is obsessed with blockbuster real estate deals
Crown Prince Sheikh Mohammed bin Zayed Al Nahyan of Abu Dhabi, Softbank CEO Masayoshi Son, and former British Prime Minister Tony Blair (Credit: Getty Images)

Masa Son, the crown prince of Abu Dhabi and Tony Blair walk into a bar and decide to build a $34B city in Asia

Masa Son, the crown prince of Abu Dhabi and Tony Blair walk into a bar and decide to build a $34B city in Asia
56 Leonard Street (Credit: iStock)

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit
London, Los Angeles and Sydney skylines (Credit: iStock)

These global luxury markets are set to improve in 2020

These global luxury markets are set to improve in 2020
Clockwise from top left: New York, Jakarta, Shanghai (inset), Vancouver and Manila (Credit: iStock)

These were the world’s hottest luxury markets in the 2010s

These were the world’s hottest luxury markets in the 2010s
Protesters in Hong Kong (Credit: Getty Images)

As protests rage on, Hong Kong’s elite scope out $20M houses abroad

As protests rage on, Hong Kong’s elite scope out $20M houses abroad
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...