With a slowing domestic economy, the United States has watched a decline in all of its markets, especially the housing market. However, this decline has helped keep New York City’s housing market alive through foreigners. With the continuous deprecation of the dollar and the value of Manhattan real estate, foreigners are now seeing property in the city as a smart investment.
Before, foreign companies doing business in New York would have to put their employees in temporary housing while visiting, but now they are buying condos and having the company serve as the landlord. This is saving foreign corporations thousands of dollars. Temporarily housing an employee in New York City used to be a very expensive aspect of doing business. Many companies used to pay upwards of $4,000 a month in rent for employee housing.
When a firm owns real estate in New York, they are not only saving money each month, but they also hold an investment. New York City real estate has the potential for growth regardless if an employee is currently living there or not.
During recent years, the New York real estate market has remained on a rise, making property even more desirable. However, in international real estate, property in the Big Apple is almost considered cheap. According to a recent survey, New York is the 15th most expensive city in the world, falling behind Moscow and London. And as foreign currencies continue to hit record highs, owning property in NYC seems like an even better deal. When a European buys into Manhattan real estate, they are almost instantly doubling the value of their money due to the exchange rates.
Investing in New York City property is the best option for so many international companies. This growing foreign interest in Manhattan property is actually helping to keep New York’s real estate market alive. Even with a nationally recessing economy, New York City’s economy and housing market remain above the national trend.