Skip to main content

Will More Foreign Money Buy NYC Real Estate?

Phil Hall
Jun 03, 2016
Most New York City-based commercial real estate professionals expect to see an increase in foreign investment in their market over the next 12 months, according to the latest Gotham Commercial Real Estate Monitor published by Marks Paneth LLP

Most New York City-based commercial real estate professionals expect to see an increase in foreign investment in their market over the next 12 months, according to the latest Gotham Commercial Real Estate Monitor published by Marks Paneth LLP.

Real estate investment by foreign buyers in Manhattan reached $24 billion last year alone, with Chinese investors pouring almost $9 billion into this market. The surveyed real estate executives stated that foreign investors would have the biggest impact in the city’s residential market (57 percent), followed by the hotel sector (47 percent), office buildings (37 percent) and retail (30 percent).

“New York City commercial real estate is attractive to foreign buyers looking for a secure safe haven to invest in,” said William Jennings, partner-in-charge of Marks Paneth’s Real Estate Group. “Prices are still appreciating and it’s a bargain compared to Hong Kong or London. In addition, the city’s economy is strong, the quality of life is good and conditions are much more stable than in other parts of the world.”

The interest in the residential market is no surprise, Jennings added, because the federal EB-5 Program provides green cards in exchange for U.S.-based investments. This program has been especially popular with Chinese buyers that are seeking to move money away from their nation’s shaky economy. Jennings added that adjustments made in the U.S. tax code will further raise the level of interest in New York’s commercial properties.

“Recent changes in the tax law that reduce the tax burden for foreign pension funds buying US real estate are likely to attract more investment,” said Jennings.

Published
Jun 03, 2016
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021