New trends in foreign buyers are inevitable for the New York City market. The stereotype of Russian or Chinese buyers swiping luxury condos off the shelves is no longer a full reality. Due to devaluation of the currency in China and Russia we are seeing some new tends.
A lot of buyers are looking at more conservative areas like Long Island City and Upper Manhattan instead of central park views in new developments.
New construction will appear on the market. We will see about 700 new units in the price range of 4 million and above.
The new property buyers on the market are from India. They are looking to spend around 3 million dollars and below. Many buyers don’t just buy as an investment, but instead to secure a stable atmosphere for their families and good education. Furthermore, the government in India limits the amount of money that a buyer can take out of the country, making it challenging to make large real estate investments.
According to the NY Times, David Friedman the president and co-founder of Wealth-X, a firm that tracks the buying patterns of people with a high net worth said – “The Chinese still have plenty of money to spend, so the change is more psychological than financial. Chinese care about discounts. That part of the Chinese psyche was eclipsed by wanting to have their currency in something safe, but now that is going to be a more prevalent attitude, with buyers looking for deals.” Which basically shows that even though there are new restrictions for them, they still will be buying just at a different price point.
Also we are seeing a change with Russian buyers. Due to the changes in politics and the economy we are seeing a shift. Less people are buying huge luxury mansions for the first time compared to the past 2 years. However the people who already own in New York City continue to buy. Nevertheless, due to political changes people are seeking change in NYC and buying new units for them and their families. Whatever the motivator, international buyers continue to seek out New York as a safe investment, although the days of the $100 million penthouse appear to be on the wane. “There are no more vanity purchases,” said Edward Mermelstein, the managing partner of the law firm Rheem Bell & Mermelstein, who has many Russian clients.“The name of the game now is return.””
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