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Real estate market in New York

Americans say that the main export product of America is America itself . Of course it deels with real estate. Either be it apartments in Manhattan, beach houses in Miami or San Diego – the rich of the world dream of owning real estate here.

Yet, the most “selling” city is still New York. So what are the tendencies of the real estate market in this region? Year 2013 has brought us quite good results. In the first quarter in/of 2013 housing prices remained stable, with just a slight tendency to increase. Summer 2013 brought enormous sales despite of the fact that traditionally this season is considered to be a calm one in the real estate market.

From August to November, 2013 there had been sold 1156 houses. Comparing to the same period in 2012 an average sales price of houses increased by 2,8% (27 000 dollars) and a number of sold real estate objects increased by 19,7%. The favorite borough of Hollywood celebrities – Manhattan - bears the palm. Just in the third quarter of 2013 there were signed 3400 building contracts, which made 17% more than in 2012. Furthermore, results in the second quarter were even better – the city gained profits of 7.6 bln dollars . This index is the second largest during the whole history of New York. In general, 1660 new buildings entered the market during 2013. Entering of another 1000 buildings was planned till the end of 2013. The most popular blocks of Manhattan are the Upper East Side and Upper West Side. Brooklyn is another popular borough. Residential complexes simply beat the sales records here.

In the third quarter of 2013 the average cost of an apartment in the center of Brooklyn grew by 12% and made about 594 000 dollars. For comparing, in 2010 the price made 530 000 dollars. Rent rates grew by 24% that makes in average 3309 dollars a month.

Earlier Brooklyn wasn’t so popular due to the lack of developed infrastructure. But today everything is different – there have appeared much more shops, distribution networks and fashionable bars. This issue attracts the majority of buyers of real estate. Experts predict that such popularity would be held within the next three years.

Some changes in the legislation, concerning the real estate market are also planned soon. An important step will be an implementation of a tax on expensive housing that will oblige billionaires to pay taxes on smart (luxury) apartments in skyscrapers, worth hundreds of millions of dollars. And, as New York advances any other city of the world by number of billionaires, such an amendment in the legislation will bring an essential contribution to city treasury.

Also experts predict an implementation of a new tax on land plots in New York. It will make owners of available plots think over what is more beneficial for them: to build up or sell. Population-rights-protection lawyer Bill de Blassio stands for implementation of this tax which is supposed to cover about 10 500 projects all over the city. The lawyer promises its actual implementation during his being a city mayor (from 2014, 1st January).

In his programme de Blassio calls upon to implement a tax on undeveloped land, which makes in average 15 300 dollars per year. Such a result is planned to be gained gradually in the course of 5 years. The idea of implementing this tax is that under such economic load on unused plots owners would prefer to build them up, that is very profitable to the city. Nevertheless, some specialists doubt achieving the desired effect of this program. Regardless of the fact how this system will affect land condition its financial benefit is indisputable. City authorities consider that profit from a new tax will make 162 millions of dollars a year. And, in its turn, it will provide financing for building of about 4000 new houses. It is important to understand at what buyer the New York real estate market aims nowadays.

© Real estate agency "Teren Plus". Luxury apartments for rent in Kyiv downtown, apartments for daily rent. Property rent, houses for rent, offices for rent. Property management, relocation services.
January 2014

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