There is no stopping foreign investments from coming in the US real estate market even if the dollar is proving to remain strong, says real estate expert, in a report by Gregg Greenberg on The Street.
Steve Witkoff, CEO of the Witkoff Group, believes that the coming year is going to be a hot market for the US, specifically New York, which is steadily becoming attractive and of good value relative to the rest of the world.
"New York City is the safe harbor for capital around the world so as you have problems in other parts of the world you see flight capital come in," said Witkoff.
New York is also well above other global cities in the residential real estate sector like London, where while pricing and trading are of the same level, pounds is 1.6 times the multiple of dollar, which means that the latter's market is 60% higher.
The company is in the process of putting up the first new hotel of its kind in 20 Times Square and what would be the only five-star hotel in the area; a new Marriott Branded Edition Hotel. Along with the hotel shall rise 76,000 square feet of prime retail space.
"Times Square is inimitable," said Witkoff. "There are 150 million people who flow through that six or seven block area every single year so you have two selling days for every day you are open in Times Square. Plus there is very little inventory; it's a high barrier to entry market."
With the Federal Reserve planning to increase rates, Witkoff believes there is not much to worry about considering that interest rates are still within historic low levels and that a slight increase will not stop him from beginning on a new project.
"It's less about rates than what is going to happen with credit and will banks suddenly shut off that construction financing credit," said Witkoff.
