While New York City properties will always be coveted by investors, New Yorkers are currently investing in the booming international real estate market. Despite the rumored real estate bubble and lending restrictions, international investors are reaping the benefits of a bull market. The Knight Frank Global House Price Index reports the value of international homes soared 8.4 percent in 2013. It is the highest increase since 1995.
According to the New York Post, Knight Frank's head of Global Real Estate in London, James Price, stated people love property because it is a tangible asset. Price added, "Along with lifestyle considerations, New Yorkers - much like other High Net Worth Individuals (HWWIs) - now see foreign property as a wise investment as they look to spread and diversify their wealth."
Investors are spending money on urban centers, especially Americans with entrepreneurial tendencies. However, investors are also purchasing everything from farms to private islands. Popular destinations around the globe include Monaco, Kauai and Charleston, North Carolina. Other destinations attracting attention are Tel Aviv, Zambia and London.
The Commercial Observer addresses whether New York City real estate is in a bubble. Despite investors' questions, the value of NYC properties in certain areas has tripled over the past 30 months. Conversely, rents have improved up to 20 percent during that time. There remains a high demand for properties in New York, even though the New York Times reports a temporary freeze in Russians looking to buy pricey properties in the city.
The real estate market has been volatile and investors are striking while the iron is hot. This could be a viable time to market a New York City property as investors search for good deals in the city as well as around the world. Minor construction can make a major difference in how the property shows. Once the work is done, a post construction cleaning crew and a real estate staging company can transform the property into a tempting tangible asset.