The New York real estate market is seeing an increase in investment interest from foreigners, and as the city enters phase 2 of its reopening, new listings and contract activity rise.
The New York real estate market is seeing a keen investment interest from Italian and other international buyers, Forbes reported, as they see the potential for "better deals" and expect the market to make a strong recovery in the years to come.
While it cannot be said for sure that the New York real estate market has already bottomed out, investors today have more negotiating power, Italmatch Chemicals CEO, Sergio Iorio told Forbes. Iorio has been a long time client of Corcoran's Andrea Pedicini.
Venice-born Pedicini said that he had received several inquiries from his home country — both new clients and those who have worked with him before — since the easing of lockdown restrictions started. Currently, he works with four previous clients and more than 30 new leads, Forbes said.
Another Corcoran agent, Sebastian Steinau, also witnessed a rise in interest from international investors with a particular interest in townhouses and smaller but well-managed boutique buildings. Currently, he represents clients from Argentina, Brazil, Canada, Germany, the Middle East, Singapore, South Africa, Switzerland, and the UK.
Most clients chose to be cautious and postpone their plans, according to Steinau, until restrictions have loosened on both private and commercial aviation, which will allow them to inspect the properties personally.
For both Steinau and Pedicini, the pandemic is not going to cause the end of New York real estate, and the market will eventually rebound as it did after 9/11.
Meanwhile, contract activity grew 41 percent as New York city's reopening entered its second phase. New listings also shot up by 57 percent, a level that was seen for the first time since March 2, according to the UrbanDigs data and cited by ABC News. New listings are still down 36 percent as compared to the same period last year, though.
However, the numbers indicate that there is a lot of pent up demand, Warburg Realty's Jason Haber told ABC News, despite the many concerns investors still have right now. GS Data Services CEO Garrett Derderian described the uptick as a "remarkable recovery" from Q2.
The median list price rose five percent year-over-year to $1.395 million; the average price-per-foot, on the other hand, dropped 3 percent to $1,560. Since June 1, there have already been 217 signed contracts in Manhattan, 71 percent down from the same period last year.
The market is defying earlier speculations of 10 to 20 percent declines, Derderian continued. And there may be bright prospects for the Manhattan housing market as workers become more inclined to walk to work instead of relying on public transport.
This situation could be a boon for most of Manhattan, downtown Brooklyn, and immediate surrounding neighborhoods, he said, and could result in price increases. Moreover, buyers in New York right now seemed fully committed: those who see the potential in the near future and look to invest in New York City in the long-term, Haber said.
