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How NY attracts foreign real estate investors

There have been few markets that have gone through as many changes as the US real estate market. While 2008 proved to be obviously disastrous, the previous decade has been one of recovery and increasing returns for investors. And if we take a look at recent trends, one thing will become readily apparent - there has been a steady increase in the capital brought in by foreign real estate investors, especially in cities like New York City. But with that in mind - how does NY manage to attract so many investors from abroad? What makes this city in particular so lucrative? Read on to find out!

"State of the Empire State"

For more than a century, New York City has been America’s beacon, and its most successful brand. Even saying that it’s the most famous city in the world would be an understatement. For decades now, people have been hiring companies such as jpurbanmoving.com and relocating to the Big Apple. And the reasons for that are readily apparent -New York’s bustling economy presents an entire world of opportunities for anyone wishing to live there. That’s why the city’s skyline has been booming, as more individuals and companies keep relocating here.

However, while all of that is true, it is also a pretty obvious fact for anyone even vaguely familiar with New York City. While people from across the US have been moving here quite a lot and buying real estate, in recent years, many more foreign investors have begun doing the same. So, the mystery of how NY attracts foreign real estate investors still remains. And here, we shall try to give a straightforward answer to that question. 

Many people decide to relocate to NYC every single day!

Who are these foreign investors? 

Before asking how NY attracts foreign real estate investors, we must answer another fundamental question: who are these investors in the first place? A quick glance at the statistics released by real estate industry associations leads us to believe that these are mostly Chinese and Russian wealthy individuals, along with institutional capital. But how can these real estate trends be explained? What drives the capital from these countries towards the US, and New York City in particular? The reasons for these are twofold - both personal and economical. 

A chance at a fresh start

There are plenty of foreign businessmen from all over the world buying property in the Big Apple. But we’re not just talking about commercial real estate that they’re investing in; many of these people are buying luxury apartments for both reselling and themselves. The reason for that is actually quite simple, and no different from the reason every person who’s ever moved to New York City had - the plentiful opportunities.

Buying residential property in NYC is the dream for any homebuyer.

After all, studies show that a large portion of the world’s business elite educate their offspring in the US. Ivy League schools are filled with the children of wealthy foreign individuals. And when they’re investing in residential property, it only makes sense for them to purchase some in New York City. As we’ve mentioned before - New York is truly America’s most famous brand, and there are plenty of pros of starting over in NY. For those looking to offer their children and themselves a better life, there is no better place in the US to buy a home. And statistics confirm this, when we look at how NY attracts foreign real estate investors. But in the end, those who can afford to buy property in high-end NYC buildings and neighborhoods have the same benefits in mind compared to those who move to rent a one-bedroom apartment. At the end of the day, everyone just wants to Live Better!

Attractions for institutional capital

Naturally, when we talk about how NY attracts foreign real estate investors, it’s not nearly all about the purchases of property for personal use. As we mentioned above, businesspeople from places like Russia and China have been investing in both commercial and residential real estate in New York City quite a lot in the past decade. And there are two reasons for that: safe returns and security.

Economic and political security attracts plenty of foreign institutional capital.

On the one hand, unless the national real estate market sustains another devastating blow, the steadily rising value of the New York real estate is a safe bet. There are few real estate markets in the world where investing in real estate is a surer wager.The city’s economy is well diversified, especially when it comes to the service sector, allowing for steady job growth that always spurs more people to buy property here. Which is also one of the reasons why people from all over the world invest as well. 

Political security

On the other hand, though, the New York real estate market is not only lucrative - but it is also pretty secure. This is one of the finest traits that the US, in general, has to offer to capital from all over the world: political security. There is really no country in the world where the stability of the socio-political system is as sturdy as in the US. And naturally, this attracts foreign capital investments. 

For some time, this was true of Western Europe as well. But the recent rumblings in the European Union have brought an air of uncertainty to the local markets, that have only cemented America’s role as the leader in political stability. Especially seeing as New York’s prime contender for the money from foreign real estate investors has been London. But the legal and economic uncertainty surrounding Brexit has soured the investors’ trust in the British economy, and thus the real estate market. 

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