Why New York City is Still the Best Place to Invest
When searching for great markets for real estate investments, there are several that are worthy of consideration. Yet, despite the allure that some may have, New York City still remains the best place to invest your real estate dollars. In fact, it is such an appealing city for real estate investment that the London-based real estate firm Knight Frank recently ranked New York City as the most appealing city for the rich.
Determining the World’s Top Cities
In order to determine the top cities in the world, Knight Frank has developed the Knight Frank City Wealth Index based on four factors: wealth, investment, lifestyle, and future. As part of the wealth factor, the index measures the current and future populations of affluent residents within the city with a focus on growth rate. The researchers found that New York City dominates all other cities within this category, with over 1.1 million of the city’s households earning more than $250,000 per year. Within the investment category, the researchers found that New York has the largest average private investment in property each year. Similarly, within the future category, the report found that the city had the highest projected GDP growth of any city by the year 2022.
New York City held strong within the lifestyle category as well, with this category measuring the number and quality of restaurants and hotels along with how much the average visitor spends in the city. New York City ranked number one overall in this category. In short, New York City took the number one position in all four categories, demonstrating that it is not only the most desirable place to live but also the best city for real estate investments.
Foreign Investments Remain Strong
Given all that New York City has to offer to its residents and its investors, it is no surprise that the city remains among the top cities for foreign investors. In fact, a recent survey by the Association of Foreign Investors in Real Estate (AFIRE) found that New York City tied with Los Angeles as the number one cities in the United States for foreign investors. This is not expected to change any time soon, as experts predict that the steady sector track record will continue to bring institutional capital to the United States, with a particular emphasis on the New York market.
While 2018 is likely to be the tenth year in a row where commercial real estate will lead all asset classes in terms of providing relatively high yields and strong risk-adjusted returns, foreigners in Japan, Korea, and Singapore are expected to remain focused on making city buys where their capital can be preserved.
There is no doubt that making real estate investments comes with a certain amount of risk. Current market statistics combined with consumer confidence indicates that New York City will continue to be the best place to invest in real estate in the United States. To learn more about how you can get the most out of your real estate investments, contact Ankor Management today!