The Manhattan property market continues to be the first choice for international buyers of luxury homes. A report released by Christie’s International Real Estate, some of the newest high-profile residents of Manhattan include cash-flush Brazilians, Chinese billionaires, Saudi royalty and a Russian composer.
More recently the Prime Minister of Qatar bought a 21,000 square foot townhouse in NYC for a reported $47 million.
“In last year’s State of the Market Report, Christie’s International Real Estate was the first to observe that High Net Worth buyers were increasing exposure to luxury residential real estate as an investment strategy to protect and preserve wealth,” Neil Palmer, Chief Executive Office, said in a statement. “That global trend has accelerated over the course of the past nine months, resulting in breathtaking sales—some above asking price—in international cities like New York.”
New York’s appeal lies in the fact that global investors get good returns on their capital. New York luxury segment is also considered a safe haven for cash and most high-net-worth buyers wouldn't think twice before shelling out money for quality real estate investment. “High-net-worth buyers are savvy spenders and, simply put, they see value in international real estate,” Cesar Herrera of Provaltur International in the Dominican Republic commented in Christie’s market report. “It would be almost impossible to re-build and replicate the top estates at the prices being paid to acquire them today.”
Real Estate and Art
Difficulty in replicating and rebuilding certain luxury homes make them unique properties, often being referred to as pieces of art.
“When we call a property art, it tends to have architectural or historic significance,” Kathleen Coumou, senior vice president at Christie’s International Real Estate, told the New York Times. “But even new construction could be considered art. It’s the equivalent of postwar and contemporary art, which is setting record prices.”
A case in point is the Mark Rothko’s ‘Orange, Red, Yellow’ which was sold at $86 million. This sale set a world mark for contemporary art sold at auction. Similarly, another New York record was achieved when CitiGroup chairman Sanford Weill sold his penthouse for $88 million in February.
