The current NYC real estate market is among the most competitive and challenging in recent memory. While several factors contribute to the high demand and tight supply, one of the most important is that the city is made up of islands, which has limited the space available for new construction. As a result, NYC is now one of the most densely populated cities in the country, with the majority of its population living in densely populated neighborhoods in outer boroughs like Queens and Brooklyn.
Are you looking to invest in real estate? If so, you must understand the current market to make smart decisions when making an offer on a property.
Real Estate Trends in Manhattan
One of the most significant trends that we’re seeing in the Manhattan real estate market is an increase in luxury apartment sales. While in 2017, only 3% of residential sales involved luxury properties, that number grew to 9% last year and is expected to reach 13% this year. Part of the reason for this increased demand is that many of these buyers come from overseas.
According Elika Real Estate, nearly a quarter of all international homebuyers purchased their property in New York City last year. This trend has been further fueled by changes in the tax laws passed earlier this year, which limit the deductibility of state and local taxes for both residents and non-residents. For many international buyers, New York City is now a more affordable place to buy property than in the past.
Real Estate in Queens
Queens currently has the highest rate of growth in property values of any borough in the city. The most growing neighborhoods include Forest Hills, Sunnyside, Long Island City, and Rego Park. Although prices are still more affordable than they are in Manhattan, many local residents are already feeling the effects of gentrification.
This leads some residents to move out and search for housing in other city areas. At the same time, other residents are staying in their current homes and looking to take advantage of the growing investment potential in their neighborhoods.
Real Estate in Brooklyn
According to real estate agent NYC, Brooklyn was the second fastest-growing neighborhood in the city last year, with the average sale price increasing by over 14% compared to the previous year. Although the areas surrounding Prospect Park and Park Slope have seen the most significant price growth, prices have also been rising rapidly in Downtown Brooklyn and Williamsburg. Overall, the current level of demand is much higher than it was five years ago, making now an ideal time to invest in Brooklyn real estate.
Of course, investing in real estate comes with some risk. The value of most homes will fluctuate over time, and the real estate market is subject to unpredictable economic trends. However, the sustained growth of the New York City real estate market over the past few years has shown that there is great potential for long-term investment. If you are interested in investing in a New York City home, a local real estate agent can help you conduct a full market analysis and help you identify a property that is most likely to increase in value over the long term.