Foreign Buyers Cannot Get Adequate of New York City

I would envision that at some point soon, the Treasury Department and the Federal Reserve will begin receiving thank-you notes from New York City realtors: The falling dollar has made New York apartments an extraordinary worth for those that earn their salaries in currencies other than the US dollar. Even the Canadian Dollar is worth much more than the US dollar these days. And when a currency known as the loonie by its countrymen is worth far more than the very good ol’ greenback, you know things have changed.

But the more affordable it is to purchase dollars, the less costly New York apartments are for these that earn funds in yens, euros and British pounds. The decrease the value, the larger the demand. Therefore why New York realtors, if they are the least bit polite, need to be sending volumes upon volumes of thank-you cards to those responsible for the declining dollar.

All of this, even so, has been in the public’s eye for some time. The assumption has been that New York City, like other main American cities, would advantage from this boost in demand. What hasn’t been obvious until now, although, is that New York City has benefited more from foreign demand than any other American city.

Probably since it has been largely sheltered from the subprime crisis, or maybe becase of its international allure, it appears foreign realtors have fallen in enjoy with New York City. The Association of Foreign Investors in True Estate (AFIRE) has just released a survey of their members that has ranked New York City the quantity one particular city for foreign real estate investment in the globe.

Washington D.C. is the second-highest ranked city, followed by London, Paris and then Shanghai.

Surprisingly, offered the current turmoil in the true estate and credit markets, the survey ranked the U.S. as the most stable and safe country for true estate investment. This might be, in component, simply because of the larger levels of transparency in U.S. businesses and markets that foreign investors frequently uncover refreshing and reassuring.

These two statistics imply that, across the globe, realtors will be be directing foreign buyers to New York apartments in higher numbers than in years past far more so than other American city.

Foreign demand will only enhance if the dollar falls additional. Additionally, as the roughly million properties that are estimated to foreclose in 2008 due to subprime-connected reasons commence foreclosing, considerably of New York City Manhattan specially will appear comparatively even safer. This need to additional concentrate the foreign demand for U.S. housing into the New York City real estate market place.