Foreign Buyers Can't Get Enough of New York City
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by: Nicholas A Judge
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Word Count: 517
I would imagine that at some point soon, the Treasury Department and the Federal
Reserve will start receiving thank-you notes from New York City realtors: The
falling dollar has made New York apartments an incredible value for those that
earn their salaries in currencies other than the US dollar. Even the
Canadian Dollar is worth more than the US dollar these days – And when
a currency called "the loonie" by its countrymen is worth more
than the good ol' greenback, you know things have changed.
But the cheaper it is to buy dollars, the cheaper New
York apartments are
for those that earn money in yens, euros and British pounds. The lower
the price, the higher the demand. Hence why New York realtors, if they
are the least bit polite, should be sending volumes upon volumes of thank-you
cards to those responsible for the declining dollar.
All of this, however, has been in the public's eye for some time. The
assumption has been that New York City, like other major American cities, would
benefit from this increase in demand. What hasn't been obvious until
now, though, is that New York City has benefited more from foreign demand than
any other American city.
Perhaps because it has been largely sheltered from the subprime crisis, or
perhaps becase of its international allure, it seems foreign realtors have
fallen in love with New York City. The Association of Foreign Investors
in Real Estate (AFIRE) has just released a survey of their members that has
ranked New York City the number one city for foreign real estate investment
in the world.
Washington D.C. is the second-highest ranked city, followed by London, Paris
and then Shanghai.
Surprisingly, given the recent turmoil in the real estate and credit markets,
the survey ranked the U.S. as the "most stable and secure" country
for real estate investment. This may be, in part, because of the higher
levels of transparency in U.S. companies and markets that foreign investors
often find refreshing and reassuring.
These two statistics mean that, across the globe, realtors will be be directing
foreign buyers to New York apartments in greater numbers than in years past;
more so than other American city.
Foreign demand will only increase if the dollar falls further. Furthermore,
as the roughly million homes that are estimated to foreclose in 2008 due to subprime-related
reasons start foreclosing, much of New York City – Manhattan especially – will
look comparatively even safer. This should further concentrate the foreign
demand for U.S. housing into the New York
City real estate market.
About the Author
Nicholas Adams Judge is a freelance writer specializing in business, politics and economics. He holds a B.A. in political science and will begin his PhD studies in political economy and public opinion next fall. He has studied economics and political science at a number of different institutions, both here and in the U.K., including Amherst College, Warwick University, Oxford University and the University of Massachusetts-Amherst.
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